Candlesticks or bar charts records price actions per specified time period. Traders have different interpretation on what they see on their charting software when switching from a daily to the 15 minute time blocks per candlestick or bar. A single candlestick formation on a 15 or 30 minute chart can indicate a buy signal but switching to a much broader time frame might produce a different interpretation.

Candlesticks can be an indirect reflection of the current sentiment of a majority of traders or investors. Different candlestick patterns or forms are produced depending on the actions of participants. When there are more buyers than sellers, it is likely that a bullish candle without tails may form, this is called a Marubozu. A marubozu indicates a strong single sentiment whether market participants are selling or buying without hesitation within a block of time. It can either be a full bar without shadows or "wicks" of a single short shadow either on top or the bottom of the candle.

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