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If you're just starting in trading, the first thing you need to master is recognizing candlestick patterns on a chart. It's not complicated, I promise you. It all boils down to understanding two things: the color and the relationship between the opening and closing prices.
Bullish candles are quite easy to identify. They usually appear in white or green (although some charts allow customization). The important thing is that in a bullish candle, the close is always above the open. That means that during that period, buyers won the battle. When you see one of these on the chart, the body of the candle occupies the space between the open and the close, and the wicks (those lines extending upward and downward) show the highs and lows of the period. Visually, it's very clear: light body, close at the top.
Bearish candles work the opposite way. They appear in red or black, and here the close is below the open. This indicates that sellers had more control during that period. The body of the candle will be at the top (where the open is) and extends downward to the close. The wicks follow the same pattern as in bullish candles, but the overall structure is inverted.
The fascinating thing about candlestick patterns is that once you understand this, you start to see the price history differently. It’s not just a number going up or down; it’s a battle between buyers and sellers reflected in each candle. Some traders specialize their entire strategy in reading these patterns. That’s why many consider mastering candlestick reading essential for making informed decisions in trading.
If you observe a SOL chart or any other asset, you'll see that candlestick patterns allow you to quickly identify the direction and strength of the price movement. It’s valuable information for anyone who wants to truly understand what’s happening in the market.