CANDLESTICK PATTERN TYPES
1. Basic Single Candle Patterns
Marubozu
· Full body candle - very small or no shadows
· Green Marubozu: Very strong buying pressure
· Red Marubozu: Very strong selling pressure
Spinning Top
· Small body, long shadows - struggle between buyers/sellers
· Indecisive - no clear winner
Doji
· Open and close nearly equal - highly indecisive
· Four types:
1. Standard Doji: Regular doji
2. Long-Legged Doji: Very long shadows
3. Gravestone Doji: No upper shadow
4. Dragonfly Doji: No lower shadow
2. Two-Candle Patterns
Engulfing Pattern
· First small, second large candle completely covers first
· Bullish Engulfing: Small red followed by large green
· Bearish Engulfing: Small green followed by large red
Hammer and Hanging Man
· Hammer: At bottom of downtrend - reversal signal
· Hanging Man: At top of uptrend - drop signal
· Features: Small body, long lower shadow
Shooting Star
· At top of uptrend - long upper shadow
· Reversal signal - buyers couldn't maintain highs
BINANCE INDICATORS EXPLAINED
1. Moving Averages (MA)
Simple Moving Average (SMA)
· Average price of last 'n' periods
· Example: 20-period SMA = average of last 20 candles
· Use: Identify trend direction
Exponential Moving Average (EMA)
· Gives more weight to recent prices
· Faster reaction than SMA
· Common settings: 9, 20, 50, 200 EMA
Practical Use:
· Golden Cross: Shorter MA crosses above longer MA (Buy)
· Death Cross: Shorter MA crosses below longer MA (Sell)
2. Relative Strength Index (RSI)
What is it?
· Momentum oscillator (0 to 100 scale)
· Measures speed of price movements
Key Levels:
· Above 70: Overbought - price increased too much
· Below 30: Oversold - price decreased too much
· 50: Neutral zone
Practical Use:
· Divergence: Price makes new high but RSI doesn't (reversal signal)
TRADING STRATEGIES GUIDE
1. Swing Trading Strategy
What is it?
· Medium-term strategy (days to weeks)
· Capitalizes on trend swings
Basic Rules:
1. Identify trend (Buy in uptrend)
2. Buy at support levels
3. Sell at resistance levels
4. Risk management is crucial
For Confirmation:
· Buy when RSI is oversold
· Moving averages provide support
· Always use stop-loss
2. Position Trading Strategy
What is it?
· Long-term strategy (weeks to months)
· Focus on fundamental factors
Basic Rules:
1. Understand market cycles
2. Buy at major support
3. Have long-term targets
4. Hold through volatility
Practice on demo account first
· Use 1-2 indicators at a time
· Always use stop-loss
· Risk only what you can afford to lose
· Control your emotions
Recommended Learning Path:
1. Line charts → Candlestick charts
2. Support/Resistance → Trend lines
3. Moving Averages → RSI
4. Demo trading → Small real trades
