I just reviewed my notes on how to read a candlestick chart and realize that many new traders still haven't mastered this. The truth is, identifying candlestick patterns is much easier than it seems; it all boils down to two things: the color and the relationship between open and close.

Look, when you see a white or green candle on the chart, it means buyers won the battle during that period. The price closed higher than where it opened, plain and simple. That’s a bullish candle. The interesting part is that visually, the body of the candle shows exactly that: the bottom marks the open and the top the close. If there are wicks (those lines extending above and below), they indicate the highs and lows the price touched during that time.

Now, when you see red or black, it’s the opposite. Sellers took control, and the price went down. Close lower than open. In these bearish candles, the body is inverted: the top marks the open and the bottom the close. The wicks work the same way, showing where the most intense action occurred.

What I find key is that these candlestick patterns tell a story of buying versus selling pressure. A green candle means more demand, a red one more supply. When you start seeing sequences of candles, that’s where the real technical analysis begins.

Most platforms (including Gate) allow you to customize the colors, but the logic is always the same. Once you internalize this, reading any chart becomes automatic. And honestly, mastering candlestick patterns is the first step to avoid losing money in trading. Look at SOL, for example, with that +3.12% it showed; it’s clearly visible in the shape of the candles. If you understand what you’re seeing, decisions become much more informed.