Candlesticks are the diary written by the main force; if you understand it, you are half a master! This saying has circulated for a long time in the crypto world, but very few can truly read this 'diary.' I am Big H, after eight years of ups and downs in the crypto world, from being a million in debt to achieving financial freedom, all thanks to these three candlestick techniques. Today, I will share these practical insights worth millions without reservation, allowing you to break free from the bondage of news and no longer operate based on anyone's face!

First Trick: Morning Star and Evening Star — The Morse Code for Main Force Trend Changes.

The perfect morning star pattern at the $3000 bottom of Bitcoin in 2019 changed my life. The morning star consists of three candlesticks: the first day’s large bearish candle creates panic, the second day’s small body shows hesitation, and the third day’s large bullish candle confirms the reversal. It's like the main force wrote in their diary: 'I'm going to start buying here.' The evening star is the opposite, signaling a top reversal.

Practical Essentials:

  1. The third candlestick's body must cover more than half of the first candlestick's body.

  2. Combining with increased trading volume is more reliable (increasing volume on the bottom, decreasing volume on the top).

  3. When it appears at key support/resistance levels, its power is multiplied.

Last year, before the LUNA crash, three consecutive evening star formations appeared on the 4-hour chart, while all my community members were shouting to buy the dip, only this set of candlesticks told me: the main force is retreating. It later proved that those who relied on 'big shot insider news' ultimately lost everything.

Second Trick: Engulfing Pattern — The Thermometer of Main Force Ambitions.

In 2021, at the $2000 Ethereum level, the bullish engulfing pattern that pierced through the entire previous day's bearish candle led me to decisively enter with my entire position. The engulfing pattern is like the main force roaring in their diary: 'I dictate this price level!' A bullish engulfing is a bullish candle wrapping a bearish one, and a bearish engulfing is a bearish candle wrapping a bullish one.

Advanced Techniques:

  • A body engulfing is more reliable than a shadow engulfing.

  • A weekly level engulfing is more valuable than a daily level.

  • Combining with the RSI overbought and oversold areas improves accuracy by 30%.

Last month, when SOL broke through $200, a bearish engulfing appeared on the 4-hour chart after a false breakout, and I immediately issued a warning in the community. Three days later, the price fell by 28%, and those who blindly believed in the 'always chase a breakout' theory became the main force's targets again.

Third Trick: Pregnancy Line Combination — The Main Force's Power Accumulation Electrocardiogram.

The most classic is the three-week pregnancy line consolidation at the $10,000 Bitcoin level in 2020. The pregnancy line is like a pause mark drawn by the main force in their diary: the mother line contains the child line, indicating that the market is accumulating energy. Go long on a breakout above the child line's high and short on a breakout below the child line's low.

Key Details:

  1. The larger the mother line's body, the greater the potential for subsequent market movements.

  2. The child line should preferably be completely contained within the mother line's body.

  3. Using it in conjunction with the contraction of Bollinger Bands has amazing effects.

In March this year, the weekly pregnancy line formed at $60,000 for BTC led many to misjudge it as a double top. But when the price broke through the child line's high, I immediately issued a buy signal in the VIP community, and the subsequent rise validated the accuracy of candlestick language.

Ultimate Mindset: Three-Dimensional Reading of Candlesticks

True candlestick masters understand three-dimensional reading:

  1. Look at the patterns (the three tricks above)

  2. Look at the positions (key support and resistance levels)

  3. Look at the volume (verify with trading volume)

When the three factors resonate, it is the golden moment to act. For example, in April this year, ETH formed at $3500:

  • Weekly Morning Star (Pattern)

  • Previous High Breakout Point (Position)

  • Trading volume is twice the three-month average (Volume)
    This trinity signal ultimately drove the price to reach $4800 within two months.

Remember: all news will ultimately be reflected in the candlesticks, but the candlestick movements often precede the news. Six hours before the announcement of a certain exchange's hack last month, the candlesticks had already issued a warning with consecutive long lower shadows, which is why my community members were able to exit in advance.

Now, you have mastered the decoding password of the main force's diary. But technique is just a weapon; the real key to victory lies in:

  1. Strict stop-loss (single loss not exceeding 2% of capital)

  2. Position management (initial position not exceeding 20%)

  3. Emotional control (not being dominated by FOMO and fear)

From today onward, forget about those so-called insider news, and throw away the big shots' analysis reports. Focus on studying the candlestick chart, the most authentic diary, and repeatedly verify it with these three tricks. When you can make judgments independently without looking at any analysis, you will understand: the biggest insider information is painted in those red and green candles.