📖 Simple Guide: How to read a crypto chart and candlesticks?
Japanese candlesticks are the main tool for understanding price movements. Each candlestick represents a period (1 min, 1h, 1 day, etc.).
1️⃣ Parts of a candlestick
Body: difference between the opening and closing price.
Upper wick: the highest price reached during the period.
Lower wick: the lowest price reached during the period.
👉 Green (or white) = the price has gone up (closing > opening).
👉 Red (or black) = the price has gone down (closing < opening).
2️⃣ Basic signals
📈 Large green candle = strong buying pressure (buyers dominate).
📉 Large red candle = strong selling pressure (sellers dominate).
🤝 Small candle with long wicks = hesitation (neither buyers nor sellers dominate).
3️⃣ Trends to observe
Sequence of green candles = bullish trend.
Sequence of red candles = bearish trend.
Alternation red/green in a narrow zone = consolidation (indecisive market).
4️⃣ Pro tip ✨
Always look at supports (zones where the price often rebounds) and resistances (zones where the price blocks upward).
➡ If the price breaks a resistance = bullish signal.
➡ If the price breaks a support = bearish signal.
✅ In summary:
Green = it's going up 📈
Red = it's going down 📉
Wicks = extremes reached in the period
Several aligned candles = clear trend
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