#CryptoCharts101 Basics of Reading Japanese Candles

📌 1. What are Japanese Candles?

Each candle represents the price movement over a time period (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 the 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 Common 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 trend.

Marubozu: a candle with no 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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