📊 Learn to Read Japanese Candles: The Foundation of Technical Analysis

Japanese candles are the language that price speaks. Understanding them allows you to read the market, detect trend changes, and improve your entries and exits.

Here we clearly explain how they work and what you should observe 👇

🕯 What is a Japanese candle?

Each candle shows how the price moved during a specific period (1 minute, 1 hour, 1 day, etc.).

🔍 The candle shows you 4 key data:

Open 🟢

Close 🔴

High 🔼

Low 🔽

📐 Basic structure of a candle

Body: Difference between open and close.

Wicks: Mark the extremes of the price.

Color:

🟢 Green: The price went up (close > open).📊

🔴 Red: The price went down (close < open).

📈 Practical examples

✅ Bullish Candle (green)

➡ Indicates that buyers dominated that period.

❌ Bearish Candle (red)

➡ Indicates that sellers were in control.

🔍 Candles you should know

1. Doji – Indecision

➡ Open ≈ Close. It can anticipate a change in direction if it appears in key areas.

2. Hammer – Rebound Signal

➡ Long lower wick. Bullish reversal signal at supports.

3. Hanging Man – Falling Alert

➡ Appears in resistance areas. It can anticipate declines.

🧩 Patterns with two or more candles

🔁 Bullish Engulfing

➡ Strong signal of a bullish reversal.

🔁 Bearish Engulfing

➡ Strong signal of a bearish reversal.

🧠 KEY ADVICE

> 📌 A single candle does not create a trend.

Use them along with supports, resistances, volume, and indicators like RSI or MACD.

🎯 Are you just starting?

1. Analyze candles on small time frames (5min, 15min).

2. Look for patterns in important areas.

3. Take screenshots and create your own analysis journal.

4. Practice, do not trade solely by intuition.

🔐 Learning to read candles is like learning to read a language: the more you practice, the clearer you will see the market.

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