Japanese Candlesticks: The Price Language Understood by Professionals
💭💭 Imagine that each candle on the chart tells you a story: from the pressure of sellers, to the strength of buyers, to a moment of hesitation.
Japanese candlesticks are not just drawings... they are the true pulse of the market.
💭 What does the candle tell you?
Each candle consists of 4 elements:
📌Open: the price at the beginning of the period.
📌Close: the price at the end of the period.
📌Upper shadow: the highest price reached.
📌Lower shadow: the lowest price.
💡Basic types you should know:
1. Doji Candle: equal buying and selling forces, signals a reversal or hesitation.
2. Hammer Candle: small body and long lower shadow, appears near supports, indicates a potential rise.
3. Bullish Engulfing Candle: a green candle that engulfs a previous red candle, a signal of sudden buying strength.
Expert Tip:
Don’t just focus on the shape of the candle, but relate it to the location (like near support or resistance), as the position is more important than the shape.
💡In the next lesson:
How to combine candles and zones to make a professional entry decision?
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