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Why do traders rely on candlesticks to read market sentiment?
Traders rely on candlesticks because they offer a simple way to understand market sentiment without needing heavy indicators. Each candle shows how buyers and sellers behaved during a specific period. The open, high, low and close make it easy to see who held control and how confidently they pushed the price. A strong body often signals conviction, while long wicks suggest hesitation or rejection. These quick visual cues help traders judge whether momentum is building or fading.

Candlesticks also reveal emotional shifts. Sharp reversals, indecision candles and aggressive expansions all carry psychological meaning. Traders pay attention to how these candles form near support, resistance or trendlines because behaviour at these levels often exposes the true strength of either side. A single candle can highlight fear, greed or uncertainty more clearly than a numerical indicator.

Another reason traders rely on candlesticks is their flexibility across timeframes. A pattern that appears on a daily chart carries broader sentiment, while the same structure on a shorter chart helps refine entries. Candlesticks adapt well to different strategies, whether someone is scalping or swing trading.

Finally, candlesticks help traders avoid unnecessary noise. Instead of overanalysing indicators, they can read the story the market is telling in real time. This direct view of sentiment helps them make confident decisions, react quickly and stay aligned with the market’s direction.

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