#CryptoCharts101 📊 | Basics of Reading Japanese Candlesticks
📌 1. What are Japanese Candlesticks?
Each candlestick represents the 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 the 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 Common Patterns:
Engulfing: a large candle that covers the previous candle → potential trend reversal.
Doji: a candle with a small body → indecision in the market → signal for a possible change in trend.
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 connect candlestick reading with support/resistance levels and technical indicators for more accurate trading decisions.
✅ Remember: Reading candlesticks is a fundamental skill for any professional trader. Learn it → Apply it → Develop your strategy.
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