TL;DR
Its a very comprehensive topic to study and have understanding of these things is difficult. So here's a brief guide for those who are entering into this bullish market and have no or lil knowledge about these things.
It's important to have this knowledge because not every time your gut feeling or intuition makes you a gainer.. a brief knowledge of things makes your moves even more smarter and on you at a safe side.
What are candlesticks?
These are the bars shown in the trading data of each and every coin in red and green colors.
Green means bullish/moving upward/positive
Red means bearish/moving downward/negative
It has two parts
A solid body
And a thing upper/lower shadow or we can say wick
What they tell us we you click on any candle of any time frame 1H,1D or 1W it tells you four things:
🔸Open: The price at which this candle starts to form.
🔸High: The most highest price it has gone through in that particular time frame.
🔸Close: The closing price of that particular time frame.
🔸Low: The lowest part of price has reached in that particular time frame.
Sharing with you some of popular patterns to make more better understanding of these candlesticks..
◽Bullish Engulfing
A big bullish/green candle followed by a small red candle.. It shows more new buyers has joined and the trend is set to be reversal towards bullish
◽ Piercing line
A green candle followed by a red candle that opens below the red one and closes after a middle of a red candle ..it Also shows a bullish trend.
◽Three White soldiers
Three consecutive green candles that opens in the middle of previous ones body and closes higher is a sign of bullish reversal.
◽ Morning star
These are three candles with two long bodied candle one red and the other one green and a small red candle in between. It shows the selling pressure of previous day has subsided and the trend reversing to bullish.
◽hammer pattern
This a candle similar to hammer in shape with long upper wick like very long with no or very very small lower wick. These hammer pattern are seen in regular as well as inverted hammer pattern in green and red both candles. This hammer patterns the bullish trend.
Inverted hammer
This article is for educational purposes only. You can use these patterns in your daily trading, but practice first and have grip on them.
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