$BTC WHAT YOU NEED TO KNOW ABOUT JAPANESE CANDLES 💥

Japanese candles are technical analysis tools that represent the price evolution of an asset over time. They are classified into three main types: bullish, bearish, and doji. Additionally, there are different candle patterns that can indicate possible trend changes or continuation of the same.

Types of Japanese Candles:

Bullish: Represented in green or white and indicate that the closing price was higher than the opening price, suggesting an upward trend.

Bearish: Represented in red or black and indicate that the closing price was lower than the opening price, suggesting a downward trend.

Doji: Characterized by having a small or nonexistent body and indicate indecision in the market, as the opening and closing prices are very similar.

Japanese Candle Patterns: There are numerous Japanese candle patterns, some of the most common are:

- Hammer: A candle with a small body and a long lower wick, indicating a possible trend change from bearish to bullish.

- Hanging Man: A candle with a small body and long wicks, indicating a possible trend change from bullish to bearish.

- Inverted Hammer: A candle with a small body and a long upper wick, indicating a possible trend change from bearish to bullish.

- Shooting Star: A candle with a small body and a long upper wick, indicating a possible trend change from bullish to bearish.

- Marubozu: A candle without wicks, indicating a strong bullish (green) or bearish (red) sentiment.

- Spinning Top: A candle with a small body and long wicks, indicating indecision in the market.

- Gravestone Doji: A doji candle with a long lower wick, indicating a possible trend change from bullish to bearish.