#las Japanese candlesticks are the most commonly used visual tool in trading because they summarize price movement over a specific time period. [1, 2, 3]
Here's a quick and simplified guide to understanding and using them today.
Structure of a candlestick
Each candlestick consists of two main parts: the body (the thick part) and the wicks or shadows (the thin lines at the ends). [1, 2, 3, 4]
Bullish Candle (Green): The price went up. The close is above the open. Bearish Candle (Red): The price went down. The close is below the open. Upper Wick: The highest price reached during that period. Lower Wick: The lowest price reached during that period. [1, 2, 3, 4, 5]