📘 Lesson 4: Understanding Candlestick Patterns*
Candlestick patterns help traders understand *price movements* and make decisions based on *market psychology*.
🔥 Basic Candlestick Structure:
- *Body* – Difference between opening & closing price.
- *Wick (Shadow)* – High & low of the price during that time.
- *Color* – Green (bullish) = Price went up | Red (bearish) = Price went down.
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🕯️ *Popular Patterns*:
1. *Doji* – Market indecision (Opening ≈ Closing). Possible reversal.
2. *Hammer* – Bullish reversal signal (after a downtrend).
3. *Shooting Star* – Bearish reversal signal (after an uptrend).
4. *Bullish Engulfing* – Strong uptrend signal.
5. *Bearish Engulfing* – Strong downtrend signal.
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✅ *Tips to Use Candlestick Patterns:*
- Always use them with *volume, trendlines, or support/resistance*.
- Never trade based on one candle — look for confirmation.
- Practice reading charts daily.
Stay tuned for *Lesson 5: Support & Resistance*!
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