What Does a Single Candlestick Represent?
Each candlestick represents price changes over a specific time period and contains 4 key data points:
| Data | Meaning |
|---|---|
| Open | Price at the start of the period |
| Close | Price at the end of the period |
| High | Highest price during the period |
| Low | Lowest price during the period |
The time frame of a candlestick can be 1 minute, 5 minutes, 1 hour, 1 day, etc., and can be freely switched on Binance.
Bullish vs Bearish Candles
Bullish Candle (Green/White)
Close > Open, indicating the price rose during this period. The longer the body, the greater the increase.
Bearish Candle (Red/Black)
Close < Open, indicating the price fell during this period. The longer the body, the greater the decrease.
Upper and Lower Shadows
The thin lines above and below the candlestick body are called "shadows" or "wicks":
- Upper Shadow: The price once reached this level but eventually fell back (strong selling pressure)
- Lower Shadow: The price once dropped to this level but eventually bounced back (buying support)
Common Candlestick Patterns
| Pattern | Characteristics | Meaning |
|---|---|---|
| Long Bullish Candle | Long body, short shadows | Strong bullish signal |
| Long Bearish Candle | Long body, short shadows | Strong bearish signal |
| Doji | Open and close are close, long shadows | Market indecision, unclear direction |
| Hammer | Very long lower shadow, small body | Potential bullish reversal |
How to View Candlesticks on Binance
Steps
- Go to the spot trading page and select a trading pair (e.g., BTC/USDT)
- The candlestick chart is in the middle of the page
- Click on the time frame (1m/5m/1h/1d) to switch
- Hover your mouse over a candlestick to see specific open, high, low, and close data
💡 Tip for Beginners: First look at the daily chart (1D) to understand the major trend, then check the hourly chart (1H) to find entry opportunities. Avoid making decisions on the 1-minute chart as there is too much noise.
⚠️ Candlesticks are just a reference: Candlestick patterns cannot predict future price movements with 100% accuracy; they are only probability tools. Beginners should not rely too heavily on technical analysis; fundamentals are equally important.