Japanese candlesticks are a popular tool used in financial markets to visually represent price movements over specific time intervals, such as a minute, hour, or day. Each candlestick provides four key pieces of information: the opening price, the closing price, the highest price, and the lowest price during the period, making it easier for traders to assess market sentiment and potential price direction.

The importance of Japanese candlesticks lies in their ability to highlight patterns that can predict future price movements. Traders look for specific formations such as "doji," "hammer," or "engulfing" patterns, which can indicate reversals or continuations in the market. This makes candlesticks an integral part of technical analysis, helping traders make informed decisions by interpreting market psychology and potential shifts in supply and demand. Overall, Japanese candlesticks are valued for their simplicity and effectiveness in a trader's toolkit.