Candles?
Japanese candles tell stories in seconds. Each one reveals who dominates the market: buyers or sellers. These are the most striking:
1. Doji — Total indecision
The price opens and closes almost the same. It's like a "breath" of the market.
👉 Indicates that a trend change could be coming… or an explosion of movement.
2. Hammer — Strong rejection
Small body above and long wick below.
👉 Sellers dominated, but buyers regained control. It usually appears at the end of a decline.
3. Inverted Hammer — Warning from above
Small body below and long wick above.
👉 Shows a failed attempt by buyers. It can announce a decline if it appears at a peak.
4. Engulfing — The candle that "eats" the previous one
A large candle completely surrounds the previous one.
👉 Bullish: Buyers take control.
👉 Bearish: Sellers crush the buyers.
5. Spinning Top — Doubts and even fight
Small body with long wicks above and below.
👉 No one dominates. A signal of pause before the next big candle.
