🕯️ Welcome to Crypto Made Simple, your series for understandable explanations about crypto trading.
🔍 What are candle patterns – and why are they so helpful?
Candle patterns show you what is happening in the market – not just the price, but also the psychology behind it.
They help you identify turning points, confirm trends, and sharpen your entry signal.
📈 Typical candle patterns for beginners:
- Bullish Engulfing: Large green candle engulfs red → Trend reversal downwards
- Hammer: Small body, long lower wick → buyers defend the floor
- Doji: Almost no body → uncertainty, often before a direction change
⚠️ Common mistakes:
- Reading candle patterns in isolation → context is missing
- No volume check → signal without substance
- Entry directly after pattern → without RRR and SL = blind trust
📌 Conclusion:
Candle patterns are like market mimicry – they show you what traders think. But only in conjunction with volume, RRR, and SL do they unleash their full strength.
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