š¹ Neutral Candlestick Patterns ā Signs of Indecision or Strength
Ā
These candles don't clearly point to either direction but offer valuable clues depending on context.
1. Doji:
Ā Open ā Close price, looks like a cross.
Ā š§ Why it forms: Balance between buyers and sellers.
Ā šš Effect:
Ā After an uptrend ā possible reversal
Ā After a downtrend ā possible reversal
Ā In a range ā market indecision
Ā
š” Always wait for the next candle to confirm the direction!
Ā
2. Marubozu:
Ā Long candle body with no (or very small) wicks.
Ā
Bullish Marubozu (green):
Ā š§ Buyers dominated start to finish
Ā š Effect: Continuation of uptrend
Ā
Ā Bearish Marubozu (red):
Ā š§ Sellers were fully in control
Ā š Effect: Continuation of downtrend
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Ā š§ Pro Tips: Read Candlesticks Like a Pro
Ā
ā 1. Context Matters More Than Shape
Ā A hammer near strong support = bullish
Ā Same hammer in the middle of nowhere = noise
Ā A doji near resistance = stronger signal than in a sideways market
Ā
Ā š Always consider support/resistance and trendlines
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Ā ā 2. Timeframe Matters
Ā Candlestick patterns on 1D or 4H = more reliable
Ā On 1-min or 5-min = often noise
š Rule: Donāt trade major signals on small timeframes
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Ā ā 3. Combine Candles with Other Tools
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Use with RSI, MACD, trendlines, volume
š Example: Bullish engulfing + oversold RSI + support = strong setup
š Same pattern without context = risky trade
Ā
Ā š End of Lesson 3:
Ā This lesson offered a complete and in-depth breakdown of candlestick psychology and structure ā bullish, bearish, and neutral patterns ā with reasoning and real impact.
Ā
š See you Tomorrow at 11 PM GMT
Ā
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