The core points of understanding candlestick trading in the cryptocurrency market are summarized as follows (within 200 words):
1. **Four Core Elements:**
* **Body:** The part between the opening price and the closing price. A bullish candle (green/white) means closing price > opening price; a bearish candle (red/black) means closing price < opening price. The length of the body represents the strength of the movement.
* **Wick:** The thin line outside the body. The top of the upper wick is the highest price, representing resistance during an uptrend; the bottom of the lower wick is the lowest price, representing support during a downtrend. The length of the wick reflects the intensity of the battle between bulls and bears.
2. **Key Pattern Recognition:**
* **Single Candlestick:** Long bullish candle (strong buying pressure), long bearish candle (strong selling pressure), doji (balance between bulls and bears, potential reversal), hammer/inverted hammer (long lower wick, position determines reversal direction), shooting star (long upper wick).
* **Combination Patterns:** Engulfing pattern (strong reversal), dark cloud cover/penetrating pattern (top/bottom reversal signals), morning star/evening star (trend reversal points). **Position (high/low)** determines the significance of the pattern!
3. **Core Combination Points:**
* **Volume:** Rising prices with increasing volume (support), falling prices with increasing volume (danger), cautious with shrinking rebounds/falls. **Volume-price combination verifies the reliability of signals.**
* **Trend Background:** Always look at the larger trend (weekly, daily), trading signals in the direction of the trend are more effective. Signals against the trend carry higher risks.
* **Key Support/Resistance Levels:** The performance of candlesticks at important price levels (previous highs/lows, dense trading areas) is extremely valuable (breakthrough, rebound, false breakout).
**Summary:** To understand candlesticks, one must grasp the meanings of the body and wick, identify key reversal/persistent patterns, and **be sure to analyze in conjunction with volume, trend position, and key price areas.** Candlesticks are the 'language' of market sentiment and strength battles, requiring continuous observation and practice. **Do not trade based solely on one candlestick, strictly set stop-loss!** 🚀