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Hello Friends! Today I want to talk to you about How to be more assertive in trading?
For this, I will tell you about the so-called Japanese candles.
These are very important along with technical and fundamental indicators.
Japanese candles are a way to represent price movement in financial markets.
They originated in the 18th century in Sakai, Japan, created by Munehisa Homma, who understood something key:
Price not only reflects value... it also reflects the emotion of traders.
Each candle shows 4 data points in a time period:
🟢 Opening
🔴 Closing
⬆️ Maximum
⬇️ Minimum
The first thing you need to identify is the structure of the candle.
1.- Body → Difference between opening and closing
2.- Upper wick → Highest price
3.- Lower wick → Lowest price
* If the closing is greater than the opening → bullish candle (green on Binance).
* If the closing is lower than the opening → bearish candle (red).
🎯 What are they for?
1️⃣ Reading market psychology
Candles show who has control:
* Buyers (bulls 🐂)
* Sellers (bears 🐻)
2️⃣ Detecting trend changes
Patterns like:
Hammer 🔨
Bullish engulfing
Shooting star
Doji
Indicate possible market reversals.
3️⃣ Confirming entries and exits
They are not used alone. They are combined with:
Support and resistance
Volume
Trend
Market structure
📊 Are they really good in trading?
Yes, but with important conditions:
* They work because:
- They represent human behavior and emotions.
- Collective psychology repeats.
But they fail when:
There is no context.
They are traded in isolation.
They have a certain % of probability when viewed in isolation.
Well, this is the introduction to what these famous Japanese Candles are that the East has been using for years in trading.
In the upcoming posts, I will tell you about the most important ones for making decisions with more assertiveness.
I sincerely wish you the best in this world❤️Love to you🤗
Hello Friends! Today I want to talk to you about How to be more assertive in trading?
For this, I will tell you about the so-called Japanese candles.
These are very important along with technical and fundamental indicators.
Japanese candles are a way to represent price movement in financial markets.
They originated in the 18th century in Sakai, Japan, created by Munehisa Homma, who understood something key:
Price not only reflects value... it also reflects the emotion of traders.
Each candle shows 4 data points in a time period:
🟢 Opening
🔴 Closing
⬆️ Maximum
⬇️ Minimum
The first thing you need to identify is the structure of the candle.
1.- Body → Difference between opening and closing
2.- Upper wick → Highest price
3.- Lower wick → Lowest price
* If the closing is greater than the opening → bullish candle (green on Binance).
* If the closing is lower than the opening → bearish candle (red).
🎯 What are they for?
1️⃣ Reading market psychology
Candles show who has control:
* Buyers (bulls 🐂)
* Sellers (bears 🐻)
2️⃣ Detecting trend changes
Patterns like:
Hammer 🔨
Bullish engulfing
Shooting star
Doji
Indicate possible market reversals.
3️⃣ Confirming entries and exits
They are not used alone. They are combined with:
Support and resistance
Volume
Trend
Market structure
📊 Are they really good in trading?
Yes, but with important conditions:
* They work because:
- They represent human behavior and emotions.
- Collective psychology repeats.
But they fail when:
There is no context.
They are traded in isolation.
They have a certain % of probability when viewed in isolation.
Well, this is the introduction to what these famous Japanese Candles are that the East has been using for years in trading.
In the upcoming posts, I will tell you about the most important ones for making decisions with more assertiveness.
I sincerely wish you the best in this world❤️Love to you🤗