It is useful to remember the basics of candles and what they mean
There are many types of Japanese candles, but here are some of the most common ones:
🔹 Marubozu Candle: Has no shadows. Indicates a strong trend in the direction of the candle (green = bullish, red = bearish).
🔹 Doji: The opening and closing prices are almost the same, suggesting indecision in the market. It can signal a possible trend change.
🔹 Hammer: Has a small body with a long lower shadow. Suggests that buyers are regaining control after a decline.
🔹 Shooting Star: Is the opposite of the hammer. Indicates a possible bearish trend change after a bullish impulse.
Each candle tells a different story about the market. Identifying them can help you improve your entries and exits in cryptocurrencies.