How to read candlesticks professionally?Candlestick
The candlestick = a complete story within the market
Each candlestick represents a battle between buyers (Bulls) and sellers (Bears).
🔥 Components of the candlestick:
• Body = the body: the difference between open and close
• Wicks = the tail/wick: the highest and lowest price reached
• Color:
• 🟢 Bullish: close > open
• 🔴 Bearish: close < open
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📘 What do candlestick shapes mean?
1️⃣ Large body + no wicks
➡️ Complete control (by buyers or sellers)
2️⃣ Small body + long wicks
➡️ Indecision — the market is unsure of the direction
3️⃣ Long upper wick
➡️ Rejection of upward movement — stronger sellers
4️⃣ Long lower wick
➡️ Rejection of downward movement — stronger buyers
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🧠 Do not read a single candlestick
Read the context:
• Where it appears (support/resistance/trend)
• The timeframe used
• Trading volume
Strong candlestick + right place = a respectable decision
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🔥 Quick example:
• Appearance of Hammer on strong support → possibility of upward retracement
• Appearance of Shooting Star on resistance → possibility of downward movement
