Japanese Candlesticks in Cryptocurrency Trading in Brief:
* Candles are the language of price: Each candle tells the story of the opening, closing, high, and low of the currency price over a time period.
* Body and shadows: The body shows the range of the underlying price movement, and the shadows indicate the peak and trough.
* Colors: Green for upward (closing higher than opening), and red for downward (closing lower than opening).
* Reversal patterns: Learn patterns like hammer, engulfing, and stars to anticipate changes in direction.
* Continuation patterns: Help confirm the continuation of the current trend.
* Strength and pressure: The size of the body and the length of the shadows reflect the strength of buyers or sellers.
* Context is crucial: Do not rely on a single candle; read it within the overall trend and support/resistance levels.
* Risk management: Candles help identify entry/exit points, but stop-loss is essential.
* Combining with indicators: Use them with RSI, moving averages, and trading volume to enhance analysis.
* Continuous training: Practicing on live charts improves your market reading skills.