Did you know that candlesticks reveal a lot about the upcoming market movement ⚠️🤔 Candlesticks are one of the most effective technical analysis tools in the trading world, with origins dating back to the 18th century when Japanese rice traders used them to track price movements. Today, this method has become essential for traders around the world thanks to its accuracy in revealing market sentiments and signaling potential reversals.
Each candlestick represents a specific time period (hour, day, week...) and shows four main elements: opening price, closing price, highest price, and lowest price. When the body of the candlestick is green or white, it indicates a price increase, while red or black indicates a decrease.
Among the popular candlestick shapes are the **Hammer** which indicates a bullish reversal, and the **Hanging Man** which warns of a potential collapse. Also, patterns like the **Engulfing Candle** and **Morning Star** provide strong signals for trend changes.
In short, candlesticks are an indispensable tool for understanding the language of the market, but they require practice and experience to accurately extract their signals. So, are you ready to master this art? 🚀