Candlesticks as a charting method has recently gained a lot of popularity all over the world because they are more visually appealing than bar charts and are generally easier to read and interpret.
The chart makes it easier to see the relationship between the open and close and the high and low of price movements. They also give a more accurate depiction of market sentiment.
They provide an easy-to-identify set of formations that used along with other indicators, give an investor a view of patterns that are emerging in the market.
Seeing the Interaction between Buyers and Sellers
Price movements are not only affected by tangible forces such as geopolitics and economics, hope, fear and greed also play a role in moving markets.
Candlesticks allow you to read the changes in the market’s determination of value, also referred to as investor sentiment.
Candlestick charts show the interaction between buyers and sellers, which in turn is reflected in price movements.
This market sentiment is a unique attribute of candlestick charts, which is not present in bar or line charts.