How to read Japanese candlesticks

Reading Japanese candlesticks involves analyzing the open, high, low. And close prices within a specific time frame to understand market sentiment. And predict future price movements. Each candlestick consists of a body and wicks (shadows) extending from the top and bottom. The body represents the range between the opening and closing prices. While the wicks show the highest and lowest prices during the period. A green or white candlestick indicates a bullish market, where the closing price is higher than the opening price, while a red or black candlestick signals a bearish market, where the closing price is lower than the opening price. Patterns such as doji, hammer, and engulfing provide insights into potential trend reversals or continuations. By mastering how to read Japanese candlesticks, traders can gain valuable insights into market dynamics, make informed trading decisions, and enhance their trading strategies for better profitability.