How to read a candlestick chart in 60 seconds.
Trading King@tradingking
10 days ago
How to read a candlestick chart in 60 seconds.
Every candlestick tells you 4 things:
OPEN - where the price started for that time period
CLOSE - where the price ended
HIGH - the highest price reached
LOW - the lowest price reached
GREEN candle = CLOSE is higher than OPEN (price went UP)
RED candle = CLOSE is lower than OPEN (price went DOWN)
The thick part (body) = distance between OPEN and CLOSE
The thin lines (wicks/shadows) = how far the price reached beyond the body
WHAT THE WICKS TELL YOU:
- Long upper wick = sellers pushed the price down from the high (selling pressure)
- Long lower wick = buyers pushed the price up from the low (buying pressure)
- No wick = strong conviction in the direction (bulls or bears dominated)
KEY PATTERNS TO LEARN FIRST:
- DOJI: open and close are nearly the same (indecision)
- HAMMER: small body at top, long lower wick (potential reversal UP)
- SHOOTING STAR: small body at bottom, long upper wick (potential reversal DOWN)
- ENGULFING: a large candle that completely covers the previous one (trend change signal)
One candle is a data point. A pattern of candles is a story. Learn to read the story before you bet on the ending.
#Trading #Stocks #Forex #CandlestickChart #Investing #Learning #TechnicalAnalysis #ChartPatterns #BeginnerTrader #StockMarket #FinancialLiteracy
6 days ago
