♦ Basics of Reading Japanese Candlesticks: ..
1. What are Japanese Candlesticks? ..
Each candlestick represents price movement over a period of time (such as 1 minute, 1 hour, 1 day).
🟩 Green Candle: Price closed higher → Rise.
🟥 Red Candle: Price closed lower → Fall.
2. Parts of the Candle: ..
Body: The difference between opening and closing price → Reflects the strength of the movement.
Wicks: Represent the highest and lowest price during the period →
Long upper wick = Selling pressure.
Long lower wick = Buying pressure.
3. Most Famous Patterns: ..
Engulfing: A large candle covers the previous candle → Possible trend reversal.
Doji: A candle with a small body → Market indecision → Signal of a potential trend change.
Marubozu: A candle without wicks → Clear strength in buying or selling.
4. How to Use Them? ..
Quick trading? → Use small time frames (5-15 minutes).
Long-term investment? → Rely on daily or weekly candles.
Always relate candlestick reading to support/resistance levels and technical indicators for more accurate trading decisions.
♦ Remember: .. Reading candles is a fundamental skill for any professional trader to learn → Apply it → Develop your strategy.