Japanese Candlesticks: The Price Language Understood by Professionals
๐ญ๐ญ Imagine that each candle on the chart tells you a story: from the pressure of sellers, to the strength of buyers, to a moment of hesitation.
Japanese candlesticks are not just drawings... they are the true pulse of the market.
๐ญ What does the candle tell you?
Each candle consists of 4 elements:
๐Open: the price at the beginning of the period.
๐Close: the price at the end of the period.
๐Upper shadow: the highest price reached.
๐Lower shadow: the lowest price.
๐กBasic types you should know:
1. Doji Candle: equal buying and selling forces, signals a reversal or hesitation.
2. Hammer Candle: small body and long lower shadow, appears near supports, indicates a potential rise.
3. Bullish Engulfing Candle: a green candle that engulfs a previous red candle, a signal of sudden buying strength.
Expert Tip:
Donโt just focus on the shape of the candle, but relate it to the location (like near support or resistance), as the position is more important than the shape.
๐กIn the next lesson:
How to combine candles and zones to make a professional entry decision?
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