A simple explanation of Japanese candles
Types of Japanese candles
1. Bullish candle (green): The price is bullish.
2. Bearish candle (red): The price is bearish.
3. Small red candle: Weak buying.
4. Small green candle: Weak selling.
Entry patterns
1. Hammer: A bullish candle after a decline, indicating a rise.
2. Three bullish candles: Three consecutive bullish candles, indicating a rise.
3. Shooting Star: A bearish candle after a rise, indicating a fall.
Exit patterns
1. Sun (Shooting Star): A bearish candle after a rise, indicating a fall.
2. Reverse fever: A bullish candle after a fall, indicating a fall.
3. Three bearish candles: Three consecutive bearish candles, indicating a fall.
Tips
1. Use candles with other indicators.
2. Choose the right time frame.
3. Don't rely on one pattern.
4. Follow news and market analysis.