The business chart needs an opportunity to read and interpret map patterns. Candlestick patterns play an important role in predicting price movements, so that traders can make informed decisions. In this article, we will search for some most effective candlestick patterns that can help improve your business strategies.
Attached Candles:
One of the most widely used and reliable candlesticks is the attached candle. It is a strong indicator of reversal and provides a clear entrance point for trades chart.
What is an associated candle? ,,
A closed candle is a candlestick that perfectly confuses the previous candle in the opposite color.
A bulish angulfing light opens near or below the previous candles and closes over its open, indicating a possible movement upwards.
A recession light appears in resistance, attaches the previous green candle fully, one suggests a lower -off.
Example Trade:
– A strong support level is identified where price has bounced multiple times.
– The price returns to this level, and a bullish engulfing candle forms.
– This is a strong buy signal, and entering the trade at this point often results in a profitable move upwards.
Momentum Candlestick:
Momentum candles are large candles, typically two to three times bigger than the surrounding candles. They indicate strong movement in one direction and are useful in choppy markets.
How to Use Momentum Candles:
– When a sideways market is followed by a large green momentum candle, it often leads to continued upward movement.
– Similarly, a large red momentum candle after a sideways market suggests a downward trend.
– The presence of trapped short traders in sideways markets often fuels these momentum moves as stop losses trigger additional buying or selling.
More candlestick pattern:
This pattern contains three or more candles with weeks indicating in one direction, indicating an important level of support or resistance.
How to trade many candlestick patterns:
– At a strong support level, many candles with downward weeks suggest that buyers defend the price.
– This is a sign for a potential value facing.
– Conversely, in resistance, many lights with the upward wick indicate that the sellers are under control, which makes it a good opportunity.
Dogi Candles:
A dozi stearin light has a very thin body with vicks on both sides, reflecting the indifference to the market.
TRADING DOGI Candle:
If a dosy candle appears at a strong support level, after which there are two fast candles, it indicates a reversal upwards.
Similarly, if it is shown at a resistance level, after which there are two low -cycle lights, it suggests a step down.
-Varations include ** dragonfly doji **, ** Gravstone doji ** and ** long-to-foot doji **, indicating each possible rebellion.
Hammer and Shooting Star:
– A **hammer candle** has a small body with a long lower wick, signaling bullish reversal.
– A **shooting star** is the inverse, with a small body and long upper wick, indicating bearish reversal.
Tweezer Candlestick Pattern:
This pattern consists of two candles of opposite colors with similar-sized wicks on the bottom or top.
Example Trade:
A bullish tweezers in support is a red candle, after which a green candle is available at the bottom, which indicates strong purchase pressure.
Resistance is a forceps of recession is a green candle, followed by a red candle with weeks, indicating a sales opportunity.
Marubozu candlestick
A Marubozu candles is a large, solid light without weeks, indicating strong movement in the direction of the trend.
Use Marubozu lights in trade:
– In a trend, a rapid Marubozu continuity confirms, making it a great entry signal.
– A recession in a dowtrands, Marubozu suggests further negative movement.
Bonus Tip: Spoting Candlestick Pattern easily:
Instead of manually searching for these patterns, traders can use ** indicators of tradingview **:
– Go to the ** indicator tab ** on Tradingview.
– Enter the name of candlestick patterns (eg fixed attached) and select it.
– The chart will highlight the events in this pattern, which makes them easier to spot.
Final thoughts:
While candlestick patterns are powerful tools, they should not be used isolated. Combining them with support and resistance levels, indicators and proper risk management can increase your success a lot. Continue to practice and refine your strategy, and over time you will become a more confident and successful businessman!