TradingParaPrincipiantes

The language of candles: What signals does the market give us?

In technical trading analysis, each candle tells a story. Green candles indicate that the closing price was higher than the opening price, reflecting a bullish trend. In contrast, red candles show that the closing price was lower than the opening price, suggesting bearish pressure.

📊 Key parts of a candle:
 🟢 Body: Represents the difference between the opening and closing price.
 📈 Upper wick: Indicates the highest price reached during that period.
📉  Lower wick: Shows the lowest price recorded.
 
🔎 Additional factors to consider:
📊 Volume: An increase in volume can confirm the strength of a trend, while low volume may indicate indecision or a potential reversal.
📈 Technical indicators: Tools like RSI and moving averages can help confirm the signals given by the candles and improve trading strategies.

🕰️ Candles tell stories in different time frames:
⏳ 15 minutes reveal quick movements, ideal for scalping.
🕐 1 hour offers a view of the short-term trend.
 ⏰ 4 hours shows consolidations and possible direction changes.
📆 1 day defines the overall picture and major trends.

 
Each trader finds their rhythm in these intervals. It's not just about looking at the candles, but interpreting them with patience and strategy. The market rewards those who observe calmly and act with conviction. 🚀

 How do you prefer to analyze the candles?

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