A candlestick line is formed as a result of the never-ending struggle between buyers and sellers. A candlestick chart is often used to make investment and trading decisions, as well as to alter one's trading judgments based on specific circumstances. Trading actions may include initiating a new position, closing an existing one, or scaling out of a position to capture partial gains.

Candlesticks' real bodies, as well as their wicks or tails, might reflect market volatility. A market with long wicks or tails and a short real body indicates a risky investment. These candles' extended wicks or tails may indicate a rejection of specific price levels when they have long wicks but little body. Candles with a small true body and long wicks or tails on both sides indicate both excessive volatility and market hesitation. These candles indicate there is no market trend.