Candlesticks are graphical representations used in financial markets to display price movements of assets over a specific time period. Each candlestick shows four key data points: the opening price, closing price, highest price, and lowest price during that time frame. The body of the candlestick is colored to indicate whether the price increased or decreased, with a filled body typically representing a price drop and an empty body indicating a price rise. Traders often analyze candlestick patterns to make informed decisions about buying or selling assets. These patterns can signal potential market trends and reversals, helping traders understand market sentiment. Common patterns include doji, hammer, and engulfing patterns, each providing insights into market behavior.