Want to catch entry points with candlesticks? First, learn to understand the market!
In the cryptocurrency world, candlesticks are the language of the market.
Understanding them allows you to know when to enter and when to avoid.
First, look at the trend.
A series of bullish candlesticks indicates strong buying pressure, while a series of bearish candlesticks indicates strong selling pressure.
The appearance of signals like hammer candlesticks or engulfing patterns often means the market is about to reverse.
Then, look at support and resistance.
A place where prices can't fall below is called support, and a place where prices can't rise above is called resistance.
If you're near support and see a bullish pattern, consider going long;
If you encounter resistance and see a bearish signal, don’t push it.
Look at volume and price together.
When prices rise and volume increases, it indicates real buying by bulls;
When prices fall and volume increases, it indicates real selling by bears.
A market without volume is unstable.
Don’t ignore patterns.
Hammer and inverted hammer candlesticks often appear at the bottom;
Three white soldiers and bullish engulfing patterns indicate that bulls are back.
These signals are often reminders before entering the market.
Indicators should also be considered.
Golden crosses in moving averages and MACD golden crosses indicate that bulls have the upper hand.
But don’t trust them blindly; use them as a supplement.
One last point: always set stop-loss orders.
If the market goes against you, stop loss immediately.
In the cryptocurrency world, preserving your capital is more important than anything else.
Remember: understanding candlesticks is not about predicting the future, but about reading the present.
Knowing how to read charts qualifies you to enter the market.
