A candlestick is a visual representation of price movements over a specific time period in trading. Each candlestick provides four crucial pieces of information: the opening price, closing price, highest price, and lowest price during that interval.The body of the candlestick is formed by the opening and closing prices. If the closing price is higher than the opening price, it’s usually colored green or white, indicating a price increase. Conversely, if the closing price is lower than the opening price, it’s typically colored red or black, signaling a price drop.The vertical line extending above and below the body is known as the “wick” or “shadow.” This shows the highest and lowest prices reached during the time period. Traders analyze candlestick patterns to identify market trends and potential price movements, making them essential for decision-making in trading strategies. Understanding how to read candlesticks can help traders make more informed choices based on market behavior.