#CryptoCharts101 📊 | Basics of Reading Japanese Candles
📌 1. What are Japanese Candles?
Each candle represents price movement over a period of time (such as 1 minute, 1 hour, 1 day).
🟩 Green Candle: price closed higher → Uptrend.
🟥 Red Candle: price closed lower → Downtrend.
📌 2. Parts of the Candle:
Body: the difference between opening and closing price → reflects the strength of the movement.
Wicks: represent the highest and lowest price during the period →
Long Upper Wick = Selling Pressure.
Long Lower Wick = Buying Pressure.
📌 3. Most Popular Patterns:
Engulfing: a large candle that covers the previous candle → potential trend reversal.
Doji: a candle with a small body → indecision in the market → signal of a potential change in direction.
Marubozu: a candle without wicks → clear strength in buying or selling.
📌 4. How to Use Them?
Quick Trading? → Use small time frames (5-15 minutes).
Long-term Investment? → Rely on daily or weekly candles.
Always relate candle reading to support/resistance levels and technical indicators for more accurate trading decisions.
✅ Remember: Candle reading is a fundamental skill for any professional trader. Learn it → Apply it → Develop your strategy.
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