#CryptoCharts101 ๐Ÿ“Š | Basics of Reading Japanese Candlesticks

๐Ÿ“Œ 1. What are Japanese Candlesticks?

Each candlestick represents the price movement over a specific time period (such as 1 minute, 1 hour, 1 day).

๐ŸŸฉ Green Candle: price closed higher โ†’ Uptrend.

๐ŸŸฅ Red Candle: price closed lower โ†’ Downtrend.

๐Ÿ“Œ 2. Parts of the Candle:

Body: the difference between the opening and closing price โ†’ reflects the strength of the movement.

Wicks: represent the highest and lowest price during the period โ†’

Long Upper Wick = Selling Pressure.

Long Lower Wick = Buying Pressure.

๐Ÿ“Œ 3. Most Common Patterns:

Engulfing: a large candle that covers the previous candle โ†’ potential trend reversal.

Doji: a candle with a small body โ†’ indecision in the market โ†’ signal for a possible change in trend.

Marubozu: a candle with no wicks โ†’ clear strength in buying or selling.

๐Ÿ“Œ 4. How to Use Them?

Quick Trading? โ†’ Use small time frames (5-15 minutes).

Long-term Investment? โ†’ Rely on daily or weekly candles.

Always connect candlestick reading with support/resistance levels and technical indicators for more accurate trading decisions.

โœ… Remember: Reading candlesticks is a fundamental skill for any professional trader. Learn it โ†’ Apply it โ†’ Develop your strategy.

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