# 🕯️ What is a Candlestick Chart?

## 🕯️ What is a Candlestick Chart?

A **candlestick chart** is the most popular way to visualize price movement in crypto, stocks, or any tradable asset.

Each "candle" shows what happened to the price in a specific time period — like 1 minute, 1 hour, or 1 day.

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### 🧱 Anatomy of a Candle

Each candlestick shows:

* **Open** → where the price started
* **Close** → where the price ended
* **High** → the highest price during that time
* **Low** → the lowest price during that time

#### 📊 Visual:

<figure><img src="https://4037061125-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FHI9tQPN2ZbRA9yfm9Hjr%2Fuploads%2FxfZdG9B9FebW2Ta5KIiI%2Fimage.png?alt=media&#x26;token=5594def0-be84-4eea-aa09-c3e9356e3b61" alt=""><figcaption></figcaption></figure>

* If the candle is **green (or white)** → price went **up** (close > open)
* If the candle is **red (or black)** → price went **down** (close < open)

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### ⌛ Timeframes

You can view candles on any time setting:

| Timeframe   | Meaning                               |
| ----------- | ------------------------------------- |
| 1m, 5m, 15m | Short-term (scalping/intraday trades) |
| 1h, 4h      | Mid-term (swing trades)               |
| 1D, 1W      | Long-term analysis                    |

> 📌 A 1-hour chart = every candle shows 1 hour of price action.

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### 🔍 Why Use Candlestick Charts?

* They give **more info** than line charts
* Easy to spot patterns (wicks, bodies, gaps)
* You can read market **psychology** (bullish/bearish pressure)

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### 🧠 Quick Examples

* **Long wick at the top** = sellers pushed price down
* **Long wick at the bottom** = buyers pushed price up
* **Small body + long wicks** = indecision in the market

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### 🤖 How Mandalyze AI Uses Candlesticks

Mandalyze AI detects patterns in candle structure, like:

* Reversals (Doji, Hammer, Engulfing)
* Continuations (Inside bars, Breakouts)
* Volume + candle correlations

It helps you understand what’s happening **behind the price**.

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### 🧪 In Summary

Candlestick charts are the foundation of visual technical analysis.\
Master them, and you’ll read the market like a language.

> 🕯 One candle can tell you more than 100 tweets.

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> 🧭 Next Lesson: Moving Averages (SMA vs EMA)
