$BTC

✍️ The Importance of Reading Candlestick Patterns in Trading

1. Reading Market Sentiment:

Each candlestick represents a battle between buyers and sellers during a specific time period, and its shape tells you who was stronger.

2. Identifying Entry and Exit Points:

Certain patterns like "Bullish Engulfing" or "Morning Star" indicate the beginning of an upward movement, while patterns like "Hanging Man" or "Shooting Star" warn of a potential downward reversal.

3. Speed of Visual Understanding:

Compared to line charts, candlesticks provide clearer details about the opening, high, low, and closing prices, making it easier to make quick decisions.

4. Combining with Other Tools:

Candlesticks become more powerful when combined with support/resistance levels or indicators like RSI and MACD.

5. Determining the Strength or Weakness of a Trend:

The size of the candlestick and its shadows provide signals about the momentum of the trend or the likelihood of a pullback.