Candlestick Charts ๐
*What are Candlestick Charts? ๐ค*
Candlestick charts are a popular tool for analyzing price movements in trading. Each candlestick represents price action over a specific time period (e.g., 1 minute, 1 hour, 1 day).
*Components of a Candlestick ๐*
- *Body*: The area between the opening and closing price.
- Green (or white) candles: Price closed higher than it opened ๐
- Red (or black) candles: Price closed lower than it opened ๐
- *Wicks (Shadows)*: The lines extending above and below the body, showing the highest and lowest prices during the period.
*Common Candlestick Patterns ๐*
1. *Bullish Patterns* (indicate potential upward movement ๐)
- Hammer
- Bullish Engulfing
- Morning Star
2. *Bearish Patterns* (indicate potential downward movement ๐)
- Shooting Star
- Bearish Engulfing
- Evening Star
3. *Indecision Patterns* (signal uncertainty or reversal ๐ค)
- Doji
- Spinning Top
