If you are starting on Binance and do not understand what 'H1, H4, hammer or engulfing' candles mean, don’t worry. This post explains everything simply.
🔹 What is a Japanese candle?
It is a graphical representation of the price behavior of an asset (like BTC or ETH) over a period of time.
Each candle shows 4 key data points:
1. Open: price at the beginning of the period
2. Close: price at the end of the period
3. High: highest price reached
4. Low: lowest price reached
🔸 What does H1, H4, D1… mean?
The letters indicate the time frame of each candle. Some examples:
M1: 1 minute
M15: 15 minutes
H1: 1 hour
H4: 4 hours
D1: 1 day
W1: 1 week
👉 For example, an H1 candle shows the price behavior in one hour.
Traders use small candles (like M5 or M15) for quick strategies like scalping, and large candles (like H4 or D1) for swing trading.
🧩 Types of basic candles:
Long green candle ➡️ Strong buying pressure (strong rise)
Long red candle ➡️ Strong selling pressure (strong drop)
Doji ➡️ Indecision (open ≈ close)
Hammer ➡️ Bullish reversal (small body below, long wick below)
Shooting star ➡️ Bearish reversal (small body above, long wick above)
📊 Common candle patterns
1. Hammer 🟢 → Reversal signal or change to bullish trend.
2. Bullish engulfing 🟩 → Strong buy signal after bearish trend.
3. Bearish engulfing 🟥 → Sell signal or imminent drop.
4. Three white soldiers 📈 → Bullish continuation.
5. Three black crows 📉 → Bearish continuation.
Learning to identify these patterns allows you to anticipate possible market movements, even before the indicators.
✅ How to use them in your strategy?
Use H1 or H4 candles if you are doing daily trading or swing trading.
Combine candle patterns with key support and resistance levels.
Confirm signals with other indicators (like RSI or volume).
Practice on a real Binance chart before using real money.
🧠 Additional tip:
If you post your analysis explaining what type of candle you are seeing and why you are entering the market, that also allows you to monetize content on Binance Square. Educate = earn.
#EducaciónCripto #TradingParaPrincipiantes