How to understand candlestick charts? 📊
Many people look at candlestick charts and have no idea what they are saying! Today I will teach you how to understand candlestick charts in the simplest way! 👇
📌 What is a candlestick?
Each candlestick represents price changes over a period of time. It tells you the opening price, closing price, highest price, and lowest price!
✅ The most important candlestick signals:
🟢 Green candlestick = Bullish
Closing price is higher than opening price — buyers control the market! Prices are rising!
🔴 Red candlestick = Bearish
Closing price is lower than opening price — sellers control the market! Prices are falling!
⚡ Long upper shadow
Price tries to rise but is pushed back — there is strong resistance above! Be careful!
💎 Long lower shadow
Price tries to fall but is pushed back up — there is strong support below! A rebound may occur!
🔥 Long bullish candlestick
A very long green candlestick — a strong buy signal! The bull market is here!
❄️ Long bearish candlestick
A very long red candlestick — a strong sell signal! Be careful of a downturn!
💡 The 3 most important candlestick patterns for beginners:
🌟 Hammer — long lower shadow, appears at the bottom = reversal signal!
🌟 Doji — opening and closing prices are almost the same = market indecision!
🌟 Engulfing pattern — a large candlestick completely engulfs the previous one = strong reversal signal!
💬 Can you read candlestick charts? Comment to tell me your level! 👇
1️⃣ No understanding at all
2️⃣ Basic understanding
3️⃣ Fairly proficient
4️⃣ Professional level
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⚠️ Investing involves risks, invest rationally!