#CryptoCharts101 Candlestick Patterns & Chart Reading Basics
๐น What Are Candlesticks?
Candlesticks are visual representations of price movement over a specific time frame (1 min, 1 hr, 1 day, etc.).
Each candle shows 4 key points:
Open: Where the price started
High: Highest price during that time
Low: Lowest price
Close: Where the price ended
๐ If the candle is green (or white) โ price went up
๐ If itโs red (or black) โ price went down
Popular Candlestick Patterns to Know
Doji โ Small body, price opened and closed nearly the same
๐ง Signal: Indecision, trend reversal may come
Hammer โ Small body, long lower wick
๐ง Signal: Bullish reversal after a downtrend
Shooting Star โ Small body, long upper wick
๐ง Signal: Bearish reversal after an uptrend
Bullish Engulfing โ Small red candle followed by large green candle
๐ง Signal: Strong buying pressure
Bearish Engulfing โ Small green candle followed by large red candle
๐ง Signal: Selling pressure.