Hello, I will show you a practical guide to understand the candles
#candle 📚 Quick guide — How to read candles on the chart
Each candle tells the story of the price in a specific period of time (1 minute, 15 minutes, 1 hour, 1 day…).
1. Candle structure
A candle has a body and a wick:
• Body = shows the opening and closing price.
• Wick (or shadow) = shows the maximum and minimum price in the period.
• Color:
• Green (or white) = price closed above where it opened → bullish trend.
• Red (or black) = price closed below where it opened → bearish trend.
📌 Example:
• Green candle: buyers dominated.
• Red candle: sellers dominated.
2. How to interpret
• Large body + small wick: strong movement in the direction of the body.
• Large wick + small body: indecision, may indicate reversal.
• Candle with long upper shadow: buyers tried to push up, but sellers pushed down.
• Candle with long lower shadow: sellers tried to push down, but buyers held.
3. Basic patterns for beginners
1. Hammer
• Small body and long lower wick.
• Indicates possible reversal to bullish.
2. Shooting Star
• Small body and long upper wick.
• Indicates possible reversal to bearish.
3. Doji
• Almost non-existent body, price opened and closed at the same level.
• Strong signal of market indecision.
4. Tips for effective use
• Always combine candle reading with support and resistance.
• Analyze several candles together (context), not just one in isolation.
• Adjust the timeframe according to your strategy (scalper uses short, swing uses long).
#velasjaponesas.