Introduction to Candlestick Charts丨Making it Easy for Beginners to Understand Candlesticks

Basic Components of Candlesticks Open Price: The initial transaction price of the trading day. Close Price: The final transaction price of the trading day. High Price: The highest transaction price during the trading day. Low Price: The lowest transaction price during the trading day. Candlesticks usually consist of three parts: Upper Shadow: Located above the candlestick, representing the price range between the high price and the close price (or open price, depending on the nature of the candlestick). Body: Represents the price range between the open price and the close price. A bullish candle (red or white) indicates that the close price is higher than the open price, while a bearish candle (green or black) indicates that the close price is lower than the open price. Lower Shadow: Located below the candlestick, representing the price range between the low price and the open price (or close price, depending on the nature of the candlestick).

Interpretation Methods for Candlesticks Interpretation of a Single Candlestick Bullish and Bearish Candles: A bullish candle indicates that the market has risen during that period, while a bearish candle indicates a decline. Size of the Body: The longer the body, the stronger the market's momentum. A longer bullish body indicates strong upward momentum; a longer bearish body indicates greater downward momentum. Length of Shadows: The longer the shadow, the stronger the resistance or support in that direction. A longer upper shadow indicates greater resistance to upward movement; a longer lower shadow indicates stronger support. Interpretation of Candlestick Patterns Double Bottom and Double Top: A double bottom (W bottom) is a signal that the market is transitioning from a decline to an increase; a double top (M top) indicates a transition from an increase to a decline. Head and Shoulders Bottom and Head and Shoulders Top: A head and shoulders bottom is a pattern indicating a reversal to an upward trend, while a head and shoulders top indicates a reversal to a downward trend. Engulfing Pattern: An engulfing pattern usually indicates that the market may soon reverse. Doji: A doji indicates that the open price and close price are the same during that period, reflecting a balance of power between bulls and bears. Appearing at a high price may indicate a peak, while appearing at a low price may indicate a bottom. Three White Soldiers and Three Black Crows: Three white soldiers are three consecutive bullish candles, indicating strong upward momentum; three black crows are three consecutive bearish candles, indicating weak downward momentum. However, note that three black crows during an upward trend may represent a buildup of energy by the bulls. Combining Position and Volume Position: The position of the candlestick is crucial for judging its nature. #看懂K线 #币安Alpha理财中心 #币安HODLer空投RESOLV #加密圆桌讨论 #CPI数据来袭