In this lesson, we will talk about candlestick charts. Candlestick charts are an essential tool for trading and are widely used in financial markets such as cryptocurrencies, stocks, and futures.

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🤔 What is a candlestick?
The core of a candlestick is to describe market price changes over a certain period using four data points: opening price, closing price, highest price, and lowest price. It can reveal the overall market trend as well as reflect changes in market sentiment.
Price fluctuations over a period are summarized into one candlestick.
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💡 Basic structure of a candlestick:
1. Body:
- Represents the price difference between the opening and closing prices.
- The length of the body directly reflects the strength of bulls and bears.
2. Shadows:
- Include the upper shadow and lower shadow, representing the highest and lowest prices in the market.
- The length of the shadows directly reflects the battle between buyers and sellers.
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📊 Time cycle of candlesticks:
Each candlestick represents a specific time period (e.g., 1 minute, 1 hour, 1 day, 1 week). You can choose an appropriate time cycle based on your trading strategy, for example:
- Short-term traders: tend to use 1-minute, 5-minute, or 1-hour candlesticks.
- Long-term investors: tend to use 1-day, 1-week, or 1-month candlesticks.
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🛠️ Common candlestick patterns and signals:
📌 Summary table: Candlestick structure and significance
Once you are familiar with the structure of candlestick charts, they can be used to develop common naked candlestick strategies for trading.