Japanese candlestick analysis on the Binance platform is used to understand price movements and predict market direction, whether up or down. These candles are a fundamental tool in technical analysis for any trader. Here’s a simplified explanation of the most important candles and their analyses within Binance.

📊 First: What are Japanese Candlesticks?

Each candle represents price movement over a specific time period (1 minute, 15 minutes, hour, day, etc.), and consists of:

Body: The difference between the open and close price.

Wick (Shadow): The highest and lowest price reached by the asset during that period.

Colors:

Green (Bullish): Close is higher than open.

Red (Bearish): Close is lower than open.

🔍 Important forms of Japanese candles and their analysis:

1. Hammer Candle

Description: Small body at the top and a long shadow at the bottom or vice versa.

Meaning: Potential bullish reversal after a downtrend.

2. Hanging Man Candle

Like the hammer but comes after a rise.

Meaning: Likely reversal to down.

3. Doji Candle

Open ≈ Close, the body is very small.

Meaning: Market indecision and may indicate the beginning of a reversal.

4. Engulfing Candle

A large candle engulfs the previous candle.

Bullish Engulfing: After a drop, indicates a rise.

Bearish Engulfing: After a rise, indicates a drop.

5. Morning Star / Evening Star

Morning Star: 3 candles, indicates the beginning of a rise.

Evening Star: 3 candles, indicates the beginning of a drop.

📉 How to follow candles on Binance?

1. Open Binance.

2. Select the market or currency (e.g., BTC/USDT).

3. Click on 'TradingView' (in the chart section).

4. Select the time frame (e.g., 1h, 4h, 1D).

5. Observe the shape of the candles and their movements.

🛠️ Tools available within Binance:

Candlestick Patterns Indicator: Can be activated in TradingView within Binance.

Combining analysis with other indicators like RSI and MACD provides higher accuracy.

🎯 Tips:

Do not rely solely on the candle itself, consider the overall market context.

Candles are more reliable in larger time frames (4 hours - daily).

Always use stop loss.$BTC

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