The analysis of market trends using candlestick charts is a dated technique. The open, high, low, and closing prices of an asset over a specific period are represented by each candlestick. Red candles denote lower closing prices, while green candles denote higher closing prices.
📈 Candlestick chart pattern types
1️⃣ Bullish patterns: These patterns signal that a downturn may be reversing and that prices may climb.
2️⃣ Bearish patterns: Indicate the possibility of an upward reversal and the potential for price declines.
How Should Candlestick Charts Be Read ❓
1️⃣ Calculate the opening, closing, high, and low prices for each candlestick by examining its body, wick, and shadow.
2️⃣ Market emotion can be deduced from colors, with red/black denoting bearishness and green/white denoting bullishness.
3️⃣ When several candlesticks align in a particular formation, patterns that indicate potential trend reversals or continuations appear.
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