The main thing you should determine is your preferred investment period.

You can think of the longer candles as a sum of the shorter candles, with the
shorter ones being a part the longer ones. For example, the 5-minute candle
consists of 5 1-minute candles. Likewise, a 1-week candle consists of 7 1-day
candles. Therefore, the shorter the time interval chosen, the more specific the
price movement becomes.

Candlestick charts are characterized by 2 main components, the body and the wick.
Each of these components represents a set of information that allows investors to
quickly understand how the market is performing within a certain time period.

If the body is green, it means the closing price is higher than the opening price —
a bullish signal for that timeframe.

If the body is red, it means the opening price is higher than the closing price — a
bearish signal for that timeframe.

This represents the highest and lowest price of the underlying asset in a given
time period.

As candlesticks are formed, certain patterns appear to give investors an idea of

how the market is doing. There are bullish signals and bearish signals, which may
indicate a turn of tide when the bulls push prices up or the bears sell out the
market.

Though candlesticks provide investors with information about the underlying asset,
it does not provide comprehensive information about the market or its volume and
depth. This is why investors use additional tools like Moving Averages or the
Ichimoku Cloud to determine the current sentiment of the market.

Knowledge and experience in technical analysis, along with the use of such tools,
can provide investors with more insight and information. Also, practice makes
perfect — the more you read and analyze charts, the more likely you are to gain an
edge in the trading field. On top of technical analysis, some traders also depend
on other methods like fundamental analysis to gauge whether an investment is worth
having in their portfolio.