Candlestick charts are more informative than line charts because they show far more detail about market behaviour within a specific time period. A line chart only connects closing prices, which gives a simple view of overall direction but hides the price dynamics that occur between the open and close. In contrast, each candlestick displays four key data points: the opening price, closing price, highest point, and lowest point. This extra information helps traders see how the price moved throughout the session, revealing volatility, momentum, and potential reversals.

The body and wicks of the candle visually communicate whether buyers or sellers dominate the market. A long bullish candle suggests strong buying pressure, while a long bearish candle indicates selling strength. Patterns such as Doji, Hammer, or Engulfing can signal shifts in sentiment, allowing traders to anticipate possible turning points before they appear on a line chart.

Candlestick charts are also easier to interpret visually. The colour contrast and structure make trends and reversals stand out quickly, which is useful for both beginners and experienced traders. This visual clarity helps traders react faster to market changes. Overall, candlestick charts give a fuller and more detailed view of price action, offering a clearer picture of market psychology than the simplified presentation of line charts.