I just reviewed how to read Japanese candlestick patterns on charts, and honestly, once you understand it, everything becomes much more intuitive than it seems. The key is to observe two things: the color of the candle and the relationship between the opening and closing prices.

Bullish candles are quite easy to identify. You usually see them in white or green, and what defines them is that the close ends higher than the open. This basically tells you that during that period, there were more buyers than sellers, pushing the price upward. When you look at them on the chart, the body of the candle marks that difference, with the lower part being the opening and the upper part the close. The wicks extending up and down show the highs and lows touched by the price during that interval.

On the other hand, bearish candles work the opposite way. You see them in red or black, and here the close is below the open. That means sellers won the battle during that period and the price fell. Visually, it's the opposite: the top of the body marks the open and the bottom the close.

The interesting thing about understanding these Japanese candlestick patterns is that it allows you to read market psychology in real time. When you see a strong bullish candle, you know there was buying confidence. A bearish one can indicate panic selling. Combining several candles in sequence is where real technical analysis begins.

Today I was looking at SOL on the chart, and it dropped to 84.83 with a fall of 3.35%, which creates some interesting bearish candles to analyze. This type of movement is exactly where these Japanese candlestick patterns make sense. Once you master this, reading charts becomes a pretty powerful tool for making trading decisions.