Mastering Candlesticks: Follow These Steps to Trade Like a Pro
1. Spot the Body: Start by identifying the body of each candlestick. This is the thick part of the candle that shows the price range between where the market opened and closed for that time period.
2. Mark Your Territory: For bullish candles, find the open at the bottom of the body and the close at the top. For bearish candles, do the opposite: the open is at the top and the close is at the bottom.
3. Seek Support and Resistance: Use candlestick patterns to pinpoint key support and resistance levels. Support acts as a floor where prices tend to bounce back up, while resistance serves as a ceiling that prices struggle to break through.
4. Make Your Move: Watch how candlesticks react at these crucial levels. If they show signs of rejection (like forming long wicks or shadows), it’s time to decide—will you go long and ride the rise, or go short and profit from the fall?
Follow these steps, sharpen your skills, and take your trading game to the next level!
