If you're just starting out in trading, learning to read Japanese candlestick patterns is probably the most important thing you can do. It's not complicated, I promise you.

The concept is pretty straightforward: everything boils down to two colors and the relationship between the opening and closing prices. Japanese candlestick patterns tell you exactly what happened in each time period, you just need to know what to look for.

Bullish candles are the ones that show buying. They appear in white or green (although some charts allow color changes). The important thing is that the close is above the open. That means buyers won the battle during that period. When you look at the body of the candle, the bottom part marks where it opened and the top where it closed. The wicks extending up and down show the highs and lows reached.

Bearish candles are the opposite. Red or black, and the close is below the open. Sellers dominated. Here, the top of the body marks the open and the bottom the close. The wicks work the same way, showing the extremes of the period.

This is what makes Japanese candlestick patterns so useful for technical analysis. Simply by observing the colors and shapes, you can instantly identify whether the price went up or down in each candle, giving you a clear idea of the market direction. You don't need to get complicated with advanced indicators at first.

The interesting part is that once you understand how to read these candles, you start to see repeating patterns. Sequences of candles that predict movements. That’s what separates winning traders from losing ones—the ability to recognize these candlestick patterns and act accordingly.

Currently watching SOL at 86.9 USDT with a +1.03%. A good opportunity to practice your candle analysis on an asset with quite a bit of volatility.