#CryptoCharts101 How to Read and Understand the Chart in Simple Steps — on the Binance Platform
1. **🕯️ Candlesticks:**
Each candle represents the open, close, high, and low price over a specific time period.
Green (or white): Close higher than open = Up (+). Red (or black): Close lower = Down (−).
2. **Understanding Candle Structure:**
Body: Reflects the difference between open and close (Strength of price movement).
Wicks (wick/shadow): Represent the highest and lowest price during the period;
Long wick above the body = Potential sell at the price peak,
Long wick below the body = Strong support and high buying.
3. **Famous Patterns:**
Reversal:
Such as Engulfing (Bullish/Bearish Engulfing) and Harami,
- Triple Morning Star Pattern: Long bearish candle → Small candle → Strong bullish candle → Signal for upward movement.
**Reliability of Strong Candles (Marubozu):**
Candle without wicks reflects clear buying or selling pressure.
Doji:
Candle with a very small body reflects a state of indecision between buyers and sellers; if it appears within a trend, it is considered a signal for potential trend reversal.
4. **How to Use Them in Your Trading on Binance?**
Use short candles (like 5 or 15 minutes) for day trading or quick trades, and take time with daily or weekly candles (Daily/Weekly) for long-term trends.
Combine candles with support/resistance levels and technical indicators (like MACD or RSI) for greater confirmation before the trade.
