If you can't learn candlestick patterns, don't say you understand the crypto world! The essential skills that beginners must master are all here.

Candlestick charts are the most basic yet easily overlooked money-making tools in the crypto world. Many people just entering the market focus only on 'which coin to buy', completely unaware of where to buy and where to sell, ultimately either getting crushed or left stranded. If you want to survive longer, first understand candlesticks.

What is the foundation of candlesticks?

A single candlestick = a battlefield, the opening price, closing price, highest point, and lowest point are the true reflections of the battle between bulls and bears. A red candlestick is called a bullish candle, indicating that the bulls have won; a green candlestick is called a bearish candle, indicating that the bears have the upper hand. A long shadow represents a failed test—long upper shadow indicates a failed upward push, while a long lower shadow indicates a downward test that has been pulled back.

Common candlestick patterns can be lifesaving.

A bullish candle with no shadows: the bulls are going crazy, no regard for rules.

Doji: a trend reversal signal, full attention required.

Engulfing pattern: the second candlestick engulfs the previous one, a strong signal.

Morning star/Evening star: reversal signal, once formed, the direction may completely reverse.

Key to practical application: don’t just look at candlesticks, combining them is the key.

Moving average combinations: golden cross, death cross, use them in conjunction with candlesticks for more accurate signals.

Multi-timeframe resonance: daily charts determine trends, hourly charts find opportunities, don’t just focus on one-minute charts randomly.

Volume changes: without volume, don’t fantasize about explosive moves, true action happens with volume.

Common pitfalls for beginners:

Is one bullish candle enough to go all in? You’re just giving money to the project team.

Did you correctly identify all candlestick patterns but ignore volume? That’s just a shape, not a signal.

Only look at technicals without considering public opinion, sentiment, and on-chain data? One step forward could lead to a step back.