Preamble to Candlesticks chart and their significance.

[Lida93]

Hey newbie's/beginners in the cryptocurrency community do you have a preamble understanding of the candlesticks on the chart, otherwise referred by some as the Japanese candlesticks? Does it interest you to have an idea of the significance of the different candlesticks? Am sure we're are all here to learn and earn and so it will sure be of interest!

Candlesticks tells us when to buy or sell. It gives us a view of the strength of either the sellers or buyers against the other and what is happening with market. The candlesticks it's like it tells stories on the chart (market stories). Although not all candlesticks are that important but having an idea of them could be of immense usefulness to your choice and strategy of trading.

Let's look at a few such as: Hammer candlestick, Inverted hammer candlestick, Doji candlestick, and Engulfing candlestick.

* HAMMER CANDLESTICK : this candlestick is just like the normal carpenter's hammer in shape and an approved hammer candle body should be at most one third of the hammer body. Hammer candles signals the trader at the end of a downtrend. In other words, it is a bullish candlestick pattern.

* INVERTED-HAMMER CANDLESTICK: as the name implies, it signals the end of a downtrend. It's like a hammer in an upside down position.

* DOJI CANDLESTICK  : this candlestick appear as an equilibrium between buyers and sellers in the market, and the smaller the Doji the better. They don't stand alone as they appear or make more meaning when in between other candles, perhaps that's why it is referred to as equilibrium between buyers and sellers. Doji candlestick makes much sense when the body is almost absent, they mostly appear at the top of a trend.

* ENGULFING CANDLESTICK    :we have engulfing bullish candlesticks and engulfing bearish candlesticks. The bullish engulfing candlestick indicates a heavy buying pressure whereas the engulfing  bearish candlestick indicates a heavy selling pressure on the market.

 One trick here is that, It will suffice you to know that these candlesticks makes much sense when they happen in higher time frames or support and resistance zones. So if you would be trading on lower time frames then, try contrasting the appearance of the candlesticks in higher time frames to that of your lower time frames how they tend to both appear. For it's would most likely give a better insight and understanding of how to place and execute your trade especially for scalpers.

This is just a preamble as beginner. You will have a much better understanding of these candlesticks when you do your own more research on them on either YouTube and other friendly sources.

[Mpamaegbu]

For me, the "Hammers" are the best to use in identifying change in trend. I like to use them on higher timeframes because they seldomly fail in that aspect. However, one thing I've come to realize is that it's not enough knowing what those candle patterns are if one can't be dispassionate in watching them do what they're meant to do. We've to know that watching candles in hindsight isn't the same thing as watching them in live streams while trade is still on. Live streams will shake your emotion.

[Mate2237]

There a lot threads on this. You have put sources of the the materials, because I know these information are not yours. And also this thread is suitable for trading board not here. That where this thread can be effectively discuss.

[odolvlobo]

Technical analysis is financial astrology.

[palle11]

There a lot threads on this. You have put sources of the the materials, because I know these information are not yours. And also this thread is suitable for trading board not here.

I think these are not his words, he has not put any link to the source but some one can talk about different types of candlestick and their functions, they are not a new kind of discussion because it can also be found on the forum. I have also posted one of the links to study Japanese candlestick in one of my post and I think op most have seen this information from maybe babypips.com

[Franctoshi]

The Engulfing Candle stick and the Hammer candle stick are best candles stick signals for me that I mostly use, which I do believe has more accuracy in determining trend reversal either when they appear at the top of the trend, it indicates a possible sell pressure (pull back or trend reversal) while at the Bottom it indicates Buy pressure (pull back or trend reversal) is around the corner. I use both of them often to determine trend direction.

[Oilacris]

DOJI CANDLESTICK

Im a swing type of trader on which if ever i do see this kind of candle stick pattern where this doji formed out then there it do means that this might be the peak
of a certain trend which reversal is likely to happen and this isnt really a bad consideration for you to make out some entry on times like this but of course
this is more effective if you do deal up on a market with less volatility like forex.For crypto, it does work on some time but most of the time it is really
been rejected or totally not that precise at all since crypto market could easily fuck up technical indicators.

[palle11]

DOJI CANDLESTICK

Im a swing type of trader on which if ever i do see this kind of candle stick pattern where this doji formed out then there it do means that this might be the peak
of a certain trend which reversal is likely to happen and this isnt really a bad consideration for you to make out some entry on times like this

If that appears it doesn't mean that only the candle stick will be used to judge the market or the next trend. If that happens then you can use the resistance level to determine your next direction depending on the timeframe especially longtime.

but of course
this is more effective if you do deal up on a market with less volatility like forex.For crypto, it does work on some time but most of the time it is really
been rejected or totally not that precise at all since crypto market could easily fuck up technical indicators.

No market is less volatile and you can lose your money faster than you imagine if you don't manage your funds and entry well. For example trading some currency pair at some point can be really volatile like during the news release. Metals too get volatile during this time of news release because it also affect the price.

[Mahanton]

Beginners will read such explanations, then they will open the charts and start catching such candles. Then they will make a trade based on similar descriptions, but the trade will be negative. This is how disappointment and surprise come from the fact that everything seemed to be done right, but for some reason the market went the other way.

The answer is extremely simple. It is worth considering the context in which we observe one of the candles listed here. This is of great importance. Candles by themselves are of no value in decision making unless we know exactly where to look for them. For example, ENGULFING CANDLESTICK works only when testing some levels or trends, if we see such candles somewhere in the middle of the figure, then these candles are of no interest. And so on, each pattern only matters under certain conditions.

This is totally precise and this is what i had experienced when i was still a noob and able to tell to myself that it was never been effective but i didnt stop on applying technical indicators which
it does sometimes been precise but most of  the time the entire market could easily fucked up technical analysis but just like we do know that this market cant really be having news or fundamentals
most of the time, which does means that you would be having no option but to stick out on using these indicators so that you wont really be that guessing
which is something that not recommended on doing so.

[Danydee72]

If it were that easy to predict future, everybody will do it. I do not believe in theories like that. One thing I must admit: the more people follow, the more these theories raise in value because people may tend to buy and sell in a same manner. 

Maybe I am wrong, but if somebody asks me, I like to tell to invest in things with value. Always focus on that. Which asset will possibly gain in value the next days, weeks, months or years.
Of course value may be defined differently and if a currency raises in price, we may assume a certain gain in value. But I know, it's not true for everybody. Some people are really good in reading candles. But many are not - like me.
And that's why I wouldn't teach anybody to follow theories like that.

[Lida93]

There a lot threads on this. You have put sources of the the materials, because I know these information are not yours. And also this thread is suitable for trading board not here. That where this thread can be effectively discuss.

Don't just rush in a hurry to accuse or allege on someone what you don't know. There maybe many threads about Candlesticks chart but definitely not same with this. I poured this out out of my very understanding of long periods of study.

Anyways, thanks for the suggestion on the board I ought to have posted.