#CryptoCharts101
Basics of Reading Japanese Candles: ..
1. What are Japanese candles .. ?
Each candle represents price movement over a specific time period (such as 1 minute, 1 hour, 1 day).
🟩 Green Candle: Price closed higher → Uptrend.
🟥 Red Candle: Price closed lower → Downtrend.
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 → Likelihood of trend reversal.
Doji: A candle with a small body → Indecision in the market → Signal of a potential change in direction.
Marubozu: A candle with no 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 candle reading to support/resistance levels and technical indicators for more accurate trading decisions.