🕯️🧠 Stop just looking at the colors: Learn to READ candles!
In Price Action, a Japanese candlestick is not just a green or red rectangle. It’s a mine of information that shows you in real time who is taking control of the market: buyers (Bulls) or sellers (Bears).
⚔️📈If you don’t know how to decode their anatomy, you’re trading blindly. Here are the 3 key elements to analyze:
1️⃣ The Body (The winner of the battle):
The longer and fuller the candlestick body is, the stronger the pressure (buying or selling) is and the more it holds throughout the entire time unit. A large green body shows that buyers crushed sellers without hesitation.
2️⃣ The Wicks (Rejection and liquidity):
This is the most important area. A long wick at the top or bottom indicates massive rejection. If the price spikes very high but closes near the bottom, leaving a huge upper wick, it means institutions distributed or absorbed the orders. This is often where Fakeouts are hiding!
3️⃣ The Close (The final decision):
It’s the closing price that validates everything. A candle that closes near its high shows healthy momentum. A candle that deflates before the close tells you: "Warning, the move is losing steam."
My advice: Never enter a trade based on a candle that’s still forming. ALWAYS wait for the close. That’s what delivers the final verdict of the confrontation.
⚠️ Educational example only, not investment advice. Get trained before risking your capital.
#PriceAction #Trading #StanPA $BTC
In Price Action, a Japanese candlestick is not just a green or red rectangle. It’s a mine of information that shows you in real time who is taking control of the market: buyers (Bulls) or sellers (Bears).
⚔️📈If you don’t know how to decode their anatomy, you’re trading blindly. Here are the 3 key elements to analyze:
1️⃣ The Body (The winner of the battle):
The longer and fuller the candlestick body is, the stronger the pressure (buying or selling) is and the more it holds throughout the entire time unit. A large green body shows that buyers crushed sellers without hesitation.
2️⃣ The Wicks (Rejection and liquidity):
This is the most important area. A long wick at the top or bottom indicates massive rejection. If the price spikes very high but closes near the bottom, leaving a huge upper wick, it means institutions distributed or absorbed the orders. This is often where Fakeouts are hiding!
3️⃣ The Close (The final decision):
It’s the closing price that validates everything. A candle that closes near its high shows healthy momentum. A candle that deflates before the close tells you: "Warning, the move is losing steam."
My advice: Never enter a trade based on a candle that’s still forming. ALWAYS wait for the close. That’s what delivers the final verdict of the confrontation.
⚠️ Educational example only, not investment advice. Get trained before risking your capital.
#PriceAction #Trading #StanPA $BTC