Learn to Understand Candlestick Patterns | Trading Course
The green/bullish candlestick does indicate that the movement of the candlestick is going up
If you want to be a successful trader, of course, you have to learn to understand candlestick patterns to find out future market movements. All the successful traders you have ever seen on social media, they must have experienced so many losses that they almost went bankrupt. But after experiencing failure, do they just stop? of course not. They come back with a strong intention to bounce back from failure.
Therefore, my motivation for all of you beginner traders who are just getting into the world of trading, it would be nice to learn to understand the patterns and properties of candlesticks first. The forms of candlesticks and candlestick patterns have existed since time immemorial, therefore many successful traders have understood the movement of candlesticks for the next period because they have learned how the basic techniques of current candlesticks or candlesticks existed in the previous period to know the direction of market movement in the future period.
For example, if you see a green candlestick, it means that the market is experiencing an uptrend, but for the future period, can you read the direction of the movement? Now in the previous candlestick, of course, you have to know in advance what the candlestick looks like, even though the candlestick is green, but you have to see where the position of the axis or body is.
The green candlestick does indicate the market is experiencing an uptrend but in the future it will not necessarily continue to rise, it could be that the green candlestick carries information down depending on the position of the axis or body. And vice versa with a red candlestick, even though a red candlestick shows information that the market will go down, it doesn't mean the future period or the next minute the candlestick will continue to be red depending on the information that the red candlestick is currently carrying.
Understanding Basic Candlestick Patterns
1. Green / Bullish Candlestick
The green/bullish candlestick does indicate that the movement of the candlestick is going up. But you have to see what the candlestick looks like. Because every candlestick shape has price direction information that will determine the next movement.
Understanding Green / Bullish Candlestick Information According to Its Form
If you see a candlestick like the picture above or a green candlestick that has an wick above it shows bullish information, whereas if you see a green candlestick that has an wick below it means it carries downside information.
What If a Candlestick Has 2 Axes?
If you see a candlestick that has 2 axes or lines, to determine the price direction information that is brought you have to see which axis is longer between the two axes. The information carried follows the longer axis.
Conclusion For Green/Bullish CandlestickThe price direction information follows the long axis directions if it has 2 axes. If it has only 1 axis, the price direction information follows the direction of the axis.
2. Red / Bearish Candlestick
If the green candlestick carries the price direction following its axis, but unlike the red candlestick, it follows the body position. For more details, you can see the image below and understand it well.
Understanding Red / Bullish Candlestick Information According to Its Form
For the red candlestick, the price direction information that is brought is to follow the direction of the axis the candlestick has only 1 axis.
What if the bearish candlestick has 2 axes?
Conclusion for red/bearish candlestickThe price direction information follows the body if it has only 1 axis. If it has 2 axes, then the price direction information follows the short axis.
Are you still confused? of course. It takes a long time to memorize the price direction bearer candlestick pattern. But if you often read and practice through a demo account, over time you will easily memorize the patterns & properties of the candlesticks above. To make it easier, you can pay attention to the explanation & picture below.
Candlesticks that carry information on the direction of the price will go up
Is the appearance of a candlestick carrying the price direction as shown above, it is certain that the next period the market trend will go up or down?
It's all not certain ! all i can thwart by the price canceling candlestick. Candlestick cancellation candlestick event that can cancel the price direction in the previous period.
What is the shape of the price direction cancellation candlestick ?
You can learn the price direction cancellation candlestick at a later time because it will be more complicated if you study it now, you better study it first to memorize all the patterns and properties of the candlesticks that I have described above. If you understand everything, then you can start to learn the types of price direction cancellation candlesticks according to their shape and color.
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