📉📈 #CryptoCharts101 – Why doesn't the candle say what you're thinking?
Have you ever looked at a currency chart, saw a long green candle and thought to yourself: "It's time to buy!"?
Then after a few minutes... the market turned against you? 😅
Don't worry, you are not alone. Many new traders misunderstand charts in their beginnings.
In this article, we explain some concepts you need to know to read the chart intelligently, not emotionally.
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🕯️ First: The candlestick is not just a color.
Many people think that a green candle means "buy," and a red candle means "run away!"
But the truth is more complex than that:
Each candle represents price movement over a certain time period.
The shape of the candle, its shadows (wicks), and the closing position all carry information.
Example:
A long green candle with a long upper wick = strong selling pressure from above, and may indicate a near correction.
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🧭 Don't just look at the candle, but at the context.
Did this candle appear after a long uptrend? It may be a reversal signal.
Did it appear in a support area? It might be a strong rebound.
Did it appear after big news? Make sure the movement is not just a temporary bubble.
💡 Golden rule:
Analyzing candles without understanding the overall trend = like judging a movie from a single shot!
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🔍 Support and resistance: Lines you should not ignore.
Even the strongest candlestick patterns will not succeed if you ignore support and resistance areas.
Support: An area where the price usually stops falling.
Resistance: An area that price finds difficult to break through upwards.
If a bullish engulfing candle appears in a support area = strong opportunity.
However, if it appears at resistance = beware, it may be a trap.
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📉 Don't enter the trade just because the chart looks "nice".
Not every bullish candle is a golden opportunity.
Not all head and shoulders patterns lead to a decline.
Always ask yourself:
What is the volume size?
Are there additional confirmations?
Is the market in a state of fluctuation or a clear trend?
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✅ Summary: Read the chart as a writer reads between the lines.
Becoming a good trader does not mean memorizing candle names, but understanding the price story.
Every candle is part of the story, every pattern is a chapter in it, and the market writes the story every second.
📌 Learn to wait, to be patient, to understand, and you will see how the chart turns into a language you master easily.
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Did you find this article useful?
Share your experience or a question you have about the charts under the hashtag #CryptoCharts101, and help others learn with you 👇