What do the red and green on the futures candlestick chart really mean? Today, let's break down the key patterns behind the long and short battle in straightforward language.
Review three times before the market opens!
Investment carries risks; this article is for knowledge sharing and not meant as investment advice!
1. Strong Trend Patterns: The body speaks!
1. 🟥 Large Bullish Candle (solid red thick body, no shadows) → Meaning: Strong upward trend! Bulls have complete control, bears have no power to fight back! → Action Signal: Strong bullish pattern; don't short easily!
2. 🟩 Large Bearish Candle (solid green thick body, no shadows) → Meaning: Strong downward trend! Bears are aggressively selling, bulls are in chaos! → Action Signal: Bears dominate; be cautious about bottom fishing!
Summary of Strong Trends: The thicker and longer the body, the stronger the trend! Shadows? They don't exist!
2. Long/Short Game Patterns: Shadows are the battlefield! Bullish counterattack signal (long lower shadow = drops down and is bought back up)
3. 🟥 Large Bullish Candle with Lower Shadow (red body + long lower shadow) → Meaning: Strong attack at lower levels, but bulls strongly counterattack to close in the green! → Signal: Strong support at lower levels; potential rebound starting point!
4. T-Line (no body + ultra-long lower shadow) → Meaning: After a fierce sell-off by bears, bulls counterattack to bring it back to the opening price! → Signal: Strong bullish reversal signal! A major reversal after panic!
5. 🔴 Bullish Hammer (short red body + long lower shadow) → Meaning: After a big drop, buying supports the price, stopping the decline and rebounding! → Signal: Downward momentum weakens; bulls begin to test.
6. 🟢 Bearish Hammer (short green body + long lower shadow) → Meaning: After a panic sell-off, being strongly supported by buying! → Signal: Bears are exhausted; a bottom may be forming! Essence of long lower shadow: When it drops, someone is buying! Bulls are supporting/ bottom fishing! Bearish warning signal (long upper shadow = rises and then gets slammed back down)
7. 🟥 Large Bullish Candle with Upper Shadow (red body + long upper shadow) → Meaning: After a rise, faces severe selling pressure, unable to rise further! → Signal: High position pressure is significant; beware of pullbacks!
8. 🟩 Large Bearish Candle with Upper Shadow (green body + long upper shadow) → Meaning: After a rebound to high levels, bears accurately strike and slam it down! → Signal: Rebound terminator! Bearish power remains strong! Essence of long upper shadow: When it rises, someone is selling! Bears are blocking/selling off!
Key Summary in One Sentence: > Thick bodies indicate direction, long shadows indicate the battle! > Long lower shadows support bulls, long upper shadows are fierce for bears!
Practical Tips:
⚠️ A single candlestick is a signal; consider the position, volume, and trend for more accuracy!
⚠️ These patterns appearing at key positions (support/resistance) have stronger signal significance!
⚠️ If you don't understand, it's better to miss out than to act rashly!
