"Japanese Candlestick Psychology: Decoding Market Movements 📊"

Japanese candlesticks are a visual method for understanding market movement based on the relationship between supply and demand. Each candlestick pattern indicates the control of sellers or buyers:

1. Strong body without tail:

•Red: The market is completely under the control of sellers, leading to a strong decline.

•Green: Buyers are in complete control, leading to a strong rise.

•Explanation: This pattern indicates a strong ongoing trend, whether up or down.

2. Strong body with small tail:

•Red: Sellers are in control with weak resistance from buyers.

•Green: Buyers are in control despite sellers' attempts.

•Explanation: The trend is still strong, but there are some minor challenges.

3. Small body with long tail from the bottom:

•Red: Sellers pressed but buyers regained some control.

•Green: Buyers overcame the selling pressure and the price rose.

•Explanation: It may indicate a potential reversal to the upside.

4. Small body and long tail from above:

• Red: Buyers lost control to sellers.

• Green: Buyers tried, but sellers pressure was stronger.

• Explanation: Indicates weak upward momentum and potential downside.

Tips:

• Understand the context by analyzing several candles together.

• Use candles with other analysis tools such as support and resistance.