It’s all about understanding the 3 key elements
1. The candle body🕯
2. The wick🪔
3. The color🟢🔴
The candle body is where it’s at.
It shows the price range between the opening and closing of a given time period.
Short body = limited price movement.
Long body = stronger price movement, up or down.
Don’t forget the wicks.
They represent the highest and lowest prices during the time period. They give you insight into market sentiment and potential reversal patterns. Keep an eye out!
Color matters too!
Green or white candles mean the bulls are in control.
Red or black candles mean the bears are dominating.
By looking at patterns of multiple candles, you can identify trends and project future price moves.
Remember, candles are just one piece of the puzzle. To make smart trading decisions, use candles with other indicators and analysis techniques.
Happy charting!
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