I just saw that many people still have questions about how to read Japanese candlestick charts, so I’m going to share what I’ve learned in trading.

Basically, it’s pretty simple: the colors tell you everything. When you see a green or white candle, it means the price closed higher than where it opened, that’s a bullish candle. There were more buyers than sellers during that period, so the price went up. Visually, you see it with the body at the bottom indicating the opening and at the top the closing, with wicks extending to the extremes.

The opposite is when you see a red or black candle. That means the price closed lower than where it started, so there was more selling pressure. The body of this candle is inverted compared to bullish candles.

The interesting thing is that bullish candles are not always a sign of pure strength, just as bearish candles are not necessarily a sign of total weakness. It depends on the context of the entire chart. But generally, when analyzing a candlestick chart, quickly identifying these patterns is essential.

Most platforms let you customize the colors, but green and red are standard. If you master this, you already have the foundation to understand more in-depth technical analysis. It’s one of those pieces of knowledge that seem obvious once you understand it, but at first, it confuses everyone.