🔥 How to read Japanese candlesticks like professionals? 📊
If you want to excel in trading 📈, you cannot ignore Japanese candlesticks! They are the key to understanding market movements and making smart decisions 🎯.
🔍 What are Japanese candlesticks?
Japanese candlesticks are a visual representation of price movement over a specific time period, giving you a quick insight into the strength of buyers (bulls 🐂) versus the strength of sellers (bears 🐻).
✅ Components of a Japanese candlestick:
Each candlestick consists of 4 main elements:
1️⃣ Opening Price (Open): the price at the beginning of the time period.
2️⃣ Closing Price (Close): the price at the end of the period.
3️⃣ Highest Price (High): the highest point the candlestick reached.
4️⃣ Lowest Price (Low): the lowest point the candlestick reached.
🎨📊 Colors of the candlesticks:
Green/Blue candlestick ✅: means the price rose during the period (closing is higher than opening).
Red candlestick ❌: means the price fell (closing is lower than opening).
⚡ How to benefit from Japanese candlesticks in your trading?
1️⃣ Watch for recurring patterns 📈, they give you strong signals for entry and exit.
2️⃣ Use them with other indicators 🛠️ like RSI and MACD to increase accuracy.
3️⃣ Monitor the volume 📊, as it confirms the strength of the pattern.
4️⃣ Avoid trading based on just one candlestick! It should be combined with overall market analysis.
