3 Candles every Trader should know
In Futures trading, price speaks to us through candles. If you learn to identify them, you stop trading by luck and start trading by strategy. ๐ง ๐ฐ
Here are my 3 favorites for detecting trend changes:
1๏ธโฃ The Hammer (Hammer) ๐จ
Appears after a decline. It has a long lower wick and a small body on top.
What it tells us: The market rejected low prices. It is a bullish reversal signal.
2๏ธโฃ The Shooting Star (Shooting Star) โ๏ธ
Appears after a rise. It has a long upper wick and a small body below.
What it tells us: Sellers have taken control at the highs. It is a bearish reversal signal.
3๏ธโฃ The Engulfing Candle (Engulfing) ๐
It is when a new candle completely "covers" the body of the previous candle.
Green engulfs Red: Total buying strength.
Red engulfs Green: Total selling strength.
๐ก Pro-Tip to win:
Do not enter just by seeing the candle. Wait for the next candle to confirm the movement and always define your Stop Loss before hitting the buy or sell button.
Which of these candles has given you better results this week? I look forward to your comments. ๐
#EducationalTrading #BinanceSquare #CryptoTips #Futures #TradingView $USDT $CC $AOP
In Futures trading, price speaks to us through candles. If you learn to identify them, you stop trading by luck and start trading by strategy. ๐ง ๐ฐ
Here are my 3 favorites for detecting trend changes:
1๏ธโฃ The Hammer (Hammer) ๐จ
Appears after a decline. It has a long lower wick and a small body on top.
What it tells us: The market rejected low prices. It is a bullish reversal signal.
2๏ธโฃ The Shooting Star (Shooting Star) โ๏ธ
Appears after a rise. It has a long upper wick and a small body below.
What it tells us: Sellers have taken control at the highs. It is a bearish reversal signal.
3๏ธโฃ The Engulfing Candle (Engulfing) ๐
It is when a new candle completely "covers" the body of the previous candle.
Green engulfs Red: Total buying strength.
Red engulfs Green: Total selling strength.
๐ก Pro-Tip to win:
Do not enter just by seeing the candle. Wait for the next candle to confirm the movement and always define your Stop Loss before hitting the buy or sell button.
Which of these candles has given you better results this week? I look forward to your comments. ๐
#EducationalTrading #BinanceSquare #CryptoTips #Futures #TradingView $USDT $CC $AOP
