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I've noticed that many beginners get confused when reading Japanese candlesticks, although it's actually quite logical. The main rule is simple: look at the color and the position of the open-close prices, and everything will become clear.
For a bullish candle, the situation is as follows: when the closing price is higher than the opening price, you have a bullish candle, usually displayed in green or white. This indicates that during the period, there was more buying pressure, and the price moved upward. On the chart, you see the body of the candle with the lower part representing the open and the upper part representing the close. If there are wicks, they will extend above the high ( and below the low ).
A bearish candle is the opposite scenario. The closing price is below the opening price, and the color is usually red or black. This suggests that sellers were more active, and downward pressure was stronger. Visually, the body of the candle is inverted—the top shows the open, and the bottom shows the close. Wicks extend above the open and below the close.
Here's what's interesting: a bullish candle doesn't always mean the price reached the period's maximum, and a bearish candle doesn't always show the minimum. Wicks indicate volatility and attempts by the market to move in both directions. This is key information for technical analysis.
Practically, it works like this: quickly scan the chart with your eyes, see predominantly green candles — the trend is bullish; red candles dominate — the trend is bearish. The shape and size of the candle body, plus the length of the wicks, give you a complete picture of who controlled the price during each period. This information is critical for making decisions, especially if you're working with SOL or other assets on shorter timeframes.