#TradingPairs101 ๐ Candlestick Patterns & Chart Reading Basics
๐น What Are Candlesticks?
Candlesticks are visual representations of price movement over a specific time frame (1 min, 1 hr, 1 day, etc.).
Each candle shows 4 key points:
Open: Where the price started
High: Highest price during that time
Low: Lowest price
Close: Where the price ended
๐ If the candle is green (or white) โ price went up
๐ If itโs red (or black) โ price went down
๐น Popular Candlestick Patterns to Know
Doji โ Small body, price opened and closed nearly the same
๐ง Signal: Indecision, trend reversal may come
Hammer โ Small body, long lower wick
๐ง Signal: Bullish reversal after a downtrend
Shooting Star โ Small body, long upper wick
๐ง Signal: Bearish reversal after an uptrend
Bullish Engulfing โ Small red candle followed by large green candle
๐ง Signal: Strong buying pressure
Bearish Engulfing โ Small green candle followed by large red candle
๐ง Signal: Selling pressure
๐ Chart Basics (Line vs Bar vs Candlestick)
Line Chart โ Only shows closing prices
Bar Chart โ Shows open, high, low, close (like a candle but more technical)
Candlestick Chart โ Most popular among traders; visually rich and intuitive
Use Support & Resistance Levels, Trendlines, and Volume alongside candles for better clarity.
๐ฏ How Chart Reading Helped Me
"Jab maine trading start ki thi, maine sirf news ya tips ke basis pe buy/sell kiya karta tha โ lekin galat entry aur exit kaafi losses kara deti thi.
Jab se maine candlestick patterns aur chart reading sikhna start kiya, maine ye samjha ki price action hi sabse powerful signal hota hai.
Doji candles ne mujhe bataya ki trend weak ho raha hai.
Hammer ne bataya kab reversal aane wala hai.
Support-resistance levels ke help se maine perfect exit points pakde.
Ab, har decision data ke base pe hota hai โ guessing se nahi."
๐ง Quick Tips:
โ๏ธ Zoom out before you zoom in (start with higher timeframe)
โ๏ธ Use candlestick patterns with RSI or MACD for confirmation