Starting with just $100, I turned it into $5,500 by learning candlestick chart patterns and using them in trading. This wasn’t about luck or random decisions; it was about understanding the market, spotting key patterns, and making smart moves.
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Candlestick charts show how prices move for things like stocks or crypto. Each "candlestick" shows the opening, closing, high, and low prices for a set period. The body of the candlestick shows the opening and closing prices, while the lines above and below (called wicks or shadows) show the highest and lowest points.
The secret to my success was learning specific candlestick patterns that give clues about future market moves. Here are some key patterns that helped me:
1. **Doji Pattern**: When the opening and closing prices are almost the same, this pattern shows indecision in the market. It can mean the trend is about to change. When I saw a Doji, I got ready for a potential shift in the market direction.
2. **Engulfing Pattern**: This pattern signals a reversal. A bullish engulfing pattern happens when a small red candlestick is followed by a bigger green one. A bearish engulfing is the opposite. Spotting these patterns helped me catch market changes early.
3. **Hammer and Hanging Man**: Both look similar but mean different things. A hammer shows up during a downtrend and can signal an upward reversal. A hanging man happens in an uptrend and suggests a downside reversal. These helped me find possible turning points in the market.
4. **Shooting Star and Inverted Hammer**: Both are reversal patterns. The shooting star appears after an uptrend and signals a reversal to the downside, while the inverted hammer suggests an upward reversal in a downtrend. Recognizing these patterns helped me adjust my trades and maximize profits.
By learning and mastering these patterns, I knew when to buy and sell. I also used smart risk management, like setting stop-losses to limit losses .
