5-Minute Guide to Candlestick Trading

The Story of Buyers vs Sellers:

Think of a candlestick chart as a simple story that keeps repeating.

In the market, buyers and sellers are always competing over price. Every short time period (like minutes or hours) is one small fight between them, and each candlestick shows the result of that fight.

One candle = one round of the battle.

So when you look at a chart, you’re not just seeing shapes or lines, you’re actually seeing a series of moments where buyers tried to push the price up, and sellers tried to push it down, and each candle shows who had more control at that time. This is the same price movement you see in platforms like Deriv, where traders analyse candlestick charts to make decisions in real time.”

The Market’s Daily Drama :

Now imagine one round in the market.

The price starts at a certain point , this is called the open. During that time, price keeps moving up and down as buyers and sellers push against each other. At the end of the time period, the price settles , this is called the close.

If the close is higher than the open, buyers were stronger in that round, so the candle turns green. If the close is lower than the open, sellers were stronger, so the candle turns red.

So simply put, each candle shows who had more control in that one moment, buyers or sellers.

Price Got Cocky… Then Got Rejected Twice :

But the story doesn’t end there.

During the fight, the price doesn’t move in a straight line. It tries to go higher and lower before settling. Those extreme moves are called wicks.

The top wick is basically buyers acting confident, pushing price up… and then getting slapped back down by sellers. The bottom wick is sellers trying to drag the price down… and then getting rejected by buyers.

So yeah, wicks are like failed flexes from both sides. It’s the market saying: *“Nice try… but sit down.” *That’s why trading platforms like Deriv focus heavily on candlestick charts — they turn market movement into simple visual decisions.

Who’s Winning Right Now?

Now think practically.

If you see a series of green candles, it simply means buyers are not stopping — they’re winning round after round, pushing price higher. If you see a series of red candles, sellers are clearly in control, pulling the price lower again and again.

Big candles mean someone completely dominated that round — no contest. Small candles mean neither side had real power, just back-and-forth confusion with no clear winner. So a candlestick chart isn’t complicated; it’s just a visual battle between buyers and sellers. And platforms like Deriv help traders read that battle in real time and act on it

So instead of overthinking it, just keep it simple: Who is actually winning right now — buyers or sellers?

Candles Tell You Everything

In real trading, people watch these candles to decide what to do. If buyers are clearly winning (strong green candles), traders may decide to buy. If sellers are dominating (strong red candles), they may sell. And if candles are small and messy, smart traders often wait, because the market is confused. So the candlestick chart is not complicated — it’s just a simple visual story of who is stronger: buyers or sellers, moment by moment.

What’s Really Happening?

In real trading, people use these candles to understand what’s going on in the market and decide their next move.

If buyers are clearly stronger (strong green candles), traders may look for buying opportunities. If sellers are in control (strong red candles), they may consider selling. And when candles are small and messy, it usually means the market is unclear — so many traders simply wait instead of rushing in.

So a candlestick chart isn’t something complicated. It’s just a simple visual story showing, moment by moment, who has more power — buyers or sellers.

Start practicing candlestick reading on Deriv and see how real market battles look in action.”