Japanese candlesticks are considered one of the strongest analytical tools for traders and investors, especially at support and resistance levels. Here are 3 candles you need to know:
1. Hammer: Appears after a strong decline, indicating a potential bullish reversal.
2. Bullish Engulfing: A green candle that engulfs a previous red candle, indicating strong buyer entry.
3. Doji: Indicates market indecision and is very useful at reversal points.
Tip: Do not rely on candlesticks alone; combining them with indicators like RSI or MACD provides a clearer view.
What is the most used and trusted candle for you? Share your opinion!