If you’re new to trading, you’ve probably come across colorful bars on a chart that look like tiny candles. These are candlestick charts, and they are one of the most powerful tools in technical analysis.

Understanding how to read candlesticks is essential for spotting trends, planning entries and exits, and making informed trading decisions. In this beginner’s guide, you’ll learn what candlesticks are, how they work, and which patterns to watch for—all explained in plain language.