Understanding candlesticks is the foundation of technical analysis. Each candle tells a story about market psychology. A single candle has four parts. The body represents the open and close. The wicks show the high and low. A green body means the close is above the open. A red body means the close is below the open. Long wicks indicate rejection. If $BTC sits at 60,000 and forms a long upper wick reaching 61,000, buyers tried to push higher but failed. This suggests strong resistance. action trading relies on reading these reactions. Look for patterns like pin bars or engulfing candles. An engulfing pattern occurs when one candle completely covers the previous one. This signals a potential trend reversal. Context matters. A signal at a key support level is stronger than one in the middle of a range. Combine candle shapes with moving averages for better accuracy. Start by observing $ETH and $SOL charts. Note how specific formations appear at major levels. Practice identifying rejection wicks. Over time, you will develop an intuition for market flow. Mastering this basic skill helps you understand why markets move. It is the first step toward advanced trading methodologies.