๐โจ How to read Japanese candles professionally when monitoring trades?
Japanese candles ๐ฏ๏ธ are the market's language ๐โฆ if you understand them, you'll know when to move ๐ and when to wait โณ.
๐น 1. Parts of the candle:
Body ๐ฉ๐ฅ: Shows the difference between the opening and closing price.
Upper and lower wicks ๐: Shows the highest and lowest price during the period.
Colors ๐จ: Green = Upward ๐, Red = Downward ๐.
๐น 2. Reading momentum (Momentum) ๐ช:
Large green body ๐ฉ = Strong buying pressure ๐น.
Large red body ๐ฅ = Strong selling pressure ๐.
Small body with long wicks โก๏ธ Indecision or potential reversal ๐.
๐น 3. Important patterns to know ๐:
Hammer ๐จ: Long lower wick and small body, a signal for a bullish reversal โฌ๏ธ.
Shooting Star ๐ : Long upper wick and small body, a signal for a bearish reversal โฌ๏ธ.
Doji โ: Opening price โ Closing price, a signal of indecision โ๏ธ.
๐น 4. Context is more important than the candle itself ๐ง :
Do not rely on just one candleโฆ always look at its position relative to the overall trend ๐ and strong levels ๐ (support and resistance).
๐ก In conclusion:
If you understand the meaning of each candle in its proper context, you'll read the market like an open book ๐, and you'll know when to seize opportunities ๐ฏ and when to avoid risks ๐ก๏ธ.
