rancakemdia.com – Over time, the types of candlestick patterns in trading are increasingly different, from one candlestick pattern, two bars, three bars and so on. However, from all these options, you should be aware that there are many profitable candlestick patterns. What is the candlestick pattern? In this paper, let’s learn.
One method to profit from trading crypto is to understand candlestick patterns. Although this is not the only approach to getting business. These candlestick patterns vary widely. Therefore, you must be careful to study them one by one.
Understanding Candlestick Patterns
As previously mentioned, the Candlestick pattern is one method of seeing future trading prices. Then what is a candlestick? Candlestick patterns are an ancient Japanese technique for increasing calculation accuracy.
This technique reflects the effect of prices on investors’ moods. This analysis is usually done to identify the best times to enter and exit the business.
This technique is “mandatory” for investors and traders, because it is one of the wise investment methods. However, it should be emphasized again that the analysis with this pattern is included in the directed category.
In other words, this analysis relies on the trader’s subjective intuition to spot different patterns. This technique can provide consistent profits if complemented by the expertise and time of the trader.
Types of Candlestick Patterns
To make it easier for beginners to understand profitable candlestick patterns in general, candlesticks are followed by a technical analysis system with warning levels in the form of “signal” and “confirmation”.
The “signal” level indicates that the candlestick has created a pattern to suggest an up or down move, although traders are discouraged from taking first positions. Meanwhile, the “confirmation” level indicates that the candlestick pattern has recommended the trader’s position according to the pattern that appears according to the direction of its movement.
Here are 5 types of candlestick patterns that are profitable in opening positions according to the form of confirmation:
Spinning Top Pattern
Spinning Top is the earliest type of candlestick. This pattern is a candlestick pattern with small upper and lower body shadows. What does it mean? What does it mean? This pattern indicates the slack of market participants. If this pattern occurs during an uptrend, then market participants take profits and vice versa.
Marubozu Pattern
Marubozu means head immediately. Quick. Marubozu occurs when there are no wicks or shadows on this candlestick. This pattern provides an indication of the activity of market participants who want to buy or sell shares.
Doji Pattern
The difference is that the doji pattern is more complicated because the doji pattern barely looks like a body. The doji pattern is not much different. This implies that market participants cannot make sales or purchases.
In addition, the Doji Candlestick pattern also describes a pattern of consolidating the price of a commodity or stock. The players in the market are expected to wait and watch
As an example, the Doji pattern represents a consolidating pattern of commodity or stock prices. Market participants are expected to wait and watch and follow the candlesticks of the next day.
Hammer Pattern
The next candlestick pattern is the hammer pattern, because its shape is almost the same as the hammer. The hammer itself has a small body and a long axis downward. In a down market, the Hammer pattern always appears. This pattern also shows a positive indication when the market is in a negative phase (the price is going down and going up).
Hanging Man
The Hanging Man is the next type of candlestick pattern. This pattern is the same as the Hammer. The shape of this pattern is a tiny body with a downward axis. This Hanging Man pattern will appear when the trend is up, but you also have to pay attention to the accuracy of this one pattern. If you find or see a hanging man pattern, don’t stand up.
Advantages of Understanding Candlestick Patterns in Trading
You can profit from trading by knowing these “candle patterns”. Here are some of the advantages of this pattern study:
1. Simple analysis
Candlestick patterns help you detect price fluctuations. Candlesticks has also established guidelines that make market analysis simpler.
Through the color of the candlestick, traders immediately know who dominates the market, whether it is bullish or bearish.
The length of the candlestick body also reflects the prevailing bullish or bearish conditions when the body is small and the shadow is long, indicating market uncertainty.
2. Additional technical analysis
In combination with other technical analysis techniques, candlesticks can be used. The use of candlestick patterns as a confirmation technique can be used with many indicators in technical analysis.
Candlesticks are provided with the same opening, high, low and closing prices as the bar chart. This can strengthen candlestick analysis.
Conclusion
Candlestick patterns are an ancient Japanese technique for increasing calculation accuracy. Candlesticks are followed by a technical analysis system with warning levels of “signal” and “confirmation”. The “confirm” level indicates that the candlestick pattern has recommended the trader’s position according to the pattern that appears according to the direction of its movement.
There are 5 types of candlestick patterns that are profitable in opening positions. Candlestick patterns help you detect price fluctuations.
The Doji pattern represents a consolidating pattern of commodity or stock prices. The Hammer pattern shows a positive indication when the market is in a negative phase (the price goes down will go up) The Hanging Man is the next type of candlestick pattern, with a small body with a downward wick. If you see a hanging man pattern, don’t stand up.
