🕯 Your simple guide to understanding the 5 most important types of Japanese candlesticks
📊 You won't need an infographic... just focus and you'll read the chart with new eyes!
✅ Candles are not just lines...
It's the "market language" that whales use when they want to move without speaking.
And your understanding of its shapes? It allows you to detect the next move before it starts! 💥
1️⃣ Bullish / Bearish Engulfing
A strong candle that completely engulfs the previous candle.
📌 It means: possible reflection
🔸 Bullish Engulfing: A large green candle engulfs the red one before it → a bullish signal
🔸 Bearish Engulfing: A red candle engulfs the green one before it → a bearish signal
🎯 If it appears at support or resistance? Never ignore it!
2️⃣ Hammer candle
Small body + very long lower tail
📌 It means: Selling pressure was strongly absorbed by buyers.
🟢 It often appears in the bottoms.
→ A sign that the decline has lost strength and the rise may begin
3️⃣ Doji candle
Opening price = approx. closing price
📌 It means: extreme confusion and hesitation
⚠️ If it appears after a strong trend?
→ It could be a signal of the end of the trend... especially if it is followed by a confirmation candle.
4️⃣ Hanging Man Candle
It looks like a hammer... but it appears on the peaks.
📌 It means: the beginning of weakness in the uptrend.
🔻 You must be careful if it appears after a strong upward wave... especially with high volume.
5️⃣ Shooting Star
Small body + very long upper tail
📌 It means: buyers failed to maintain the rise
🛑 It appears at the peaks... and often precedes a strong correction.
🧠 How do you benefit from candles?
Don't rely on the shape of the candle alone.
Understand where the candle appeared (support? resistance? bottom? top?)
Watch the volume with it
Make sure you are using a clear time frame (1H, 4H or Daily).
🪙 Example of the experiment - try today on a coin$LINK
A shooting star candle appeared at the $13.5 resistance.
- Followed by a correction of -4.5%
→ A sure sign that candles precede events!
📣 "Call To Action" CTA for follow-up:
When you learn to read candles, you won't need complex indicators.
Follow Trade Oracle X to become a whale chart master!
