📊 How to read Japanese candlesticks in quick steps:
1. Components of the candle 🕯️
Upper and lower wicks: indicate the highest and lowest prices the candle reached.
Body: represents the difference between the opening price and the closing price.
> Quick idea:
Long body with a small wick above → strong buy, the price might continue to rise.
Long body with a small wick below → strong sell, the price might continue to fall.
2. Bullish and bearish candles 🔺🔻
Bullish: closing price is higher than the opening (colored green or white).
Bearish: closing price is lower than the opening (colored red or black).
3. The most important patterns to memorize 🧠
Hammer 🔨
Small body with a long lower wick, appears at the bottom, hints at a near rise.
Doji ⚖️
Very small body, indicates a balance of power between buying and selling, and sometimes warns us of a direction change.
Bullish Engulfing 🌅
A large green candle engulfs a small red candle, a strong sign of a market reversal in favor of buyers.
4. How to use them practically? 🎯
1. Choose the appropriate time frame (1 hour, 4 hours, daily).
2. Look for the pattern: focus on previous patterns while drawing.
3. Add a confirmation indicator (like RSI or moving average).
4. Set stop loss and take profit before entering the trade.
✨ Try to see today's candles on your account.
In the end, which pattern caught your attention?
