Have you ever seen the fancy stock charts with green and red bars that are all over the place?

Let's unlock the secret language of candlestick charts! 🕯️

A candlestick chart consists of many individual "candles" next to each other.

Each candle tells a story about the battle between buyers and sellers of a stock over a particular time period, for example, 5 minutes 📊

Imagine you're watching a tennis match 🎾

The candlestick is like the scoreboard, showing you who's winning and by how much.

When the price goes up, it's a point for the buyers, and the candlestick turns green. 🟢

When the price goes down, it's a point for the sellers, and the candlestick turns red. 🔴

So in addition to the color, which tells you if the stock price went up or down, each candlestick is made up of two components: the Body and Wick.

💡 Body = the rectangle, which show the price range between the opening and closing prices.

The top of the rectangle is the closing or final price 🤑

The bottom of the rectangle is the opening or starting price 💹

A long body indicates a bigger change in price, while a shorter body indicates a smaller change in price 📈📉

💡 Wick = the strings surrounding the body, which show the price range between the highest and lowest price

The top of the line is the highest price during the period

The bottom of the wick is the lowest price during the period 📉

These components of a candlestick form very interesting shapes or patterns! 🧩

These patterns tell investors what happened to a stock's price over time 🤔