Beginner’s Guide: How to Read Candlestick Charts for Crypto Trading 🚨

What is Intraday Trading?

Intraday trading means buying and selling cryptocurrency within the same day. The goal is to profit from small price changes — buying low and selling high (or short selling).

What is a Candlestick Chart?

Candlestick charts show how a coin’s price moved during a specific time period. Each “candle” includes:

Body – Displays the opening and closing price.

Upper Wick – The highest price reached.

Lower Wick – The lowest price reached.

Color –

Green = Price increased

Red = Price decreased

Why Candlesticks Are Important

Candlestick patterns help traders understand market sentiment — whether it's bullish (going up) or bearish (going down). Here are some key patterns to know:

Bullish Patterns (Price May Rise)

Hammer – Small body with a long lower wick. Suggests buyers are stepping in.

Inverse Hammer – Small body with a long upper wick. Buyers might take control.

Bullish Engulfing – A small red candle followed by a large green one. Signals bullish momentum.

Piercing Line – A red candle followed by a green candle that covers at least half the red. Positive sign.

Morning Star – Three candles: red, small (can be red or green), then green. Signals potential trend reversal upward.

Three White Soldiers – Three green candles in a row. Strong signal of a continued uptrend.

Bearish Patterns (Price May Fall)

Hanging Man – Small body with a long lower wick. Indicates selling pressure.

Shooting Star – Small body with a long upper wick. Suggests upcoming price drop.

Bearish Engulfing – A small green candle followed by a larger red candle. Potential downtrend.

Evening Star – Three candles: green, small (red or green), then red. Signals reversal to the downside.

Three Black Crows – Three red candles in a row. Strong bearish signal.

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