🌹HOW TO ANALYZE CANDLESTICKS🌹

19 Feb 2023

🌺A candle represents the changes in price over an interval of time, such as 1 day or 1 minute. The main body of the candle illustrates the opening price at the start of the time interval and the price when the market closed at the end of the interval. The head and tail represent the highest and lowest prices during the interval.

🌸If the price closed at a price above the opening price, then the candle is referred to as a 'bullish' candle and if the price closed below the opening price, then the candle is referred to as a 'bearish' candle.

🌼The length of the shadows shows how much the price has moved up and down with respect to a candlestick within a specific duration.

🌻The size of the candlestick body shows the difference between the opening and closing price and it tells us a lot about the strength of buyers or sellers.

🌹Below, the most important characteristics of the analysis of the candlestick body are listed.

💐A long candlestick body, that leads to quickly rising prices, indicates more buying interest and a strong price move.

🌷If the size of the candlestick bodies increases over a period, then the price trend accelerates and a trend is intensified.

🌺When the size of the bodies shrinks, this can mean that a prevailing trend comes to an end, owing to an increasingly balanced strength ratio between the buyers and the sellers.

🌸Candlestick bodies that remain constant confirm a stable trend.

🌼If the market suddenly shifts from long rising candlesticks to long falling candlesticks, it indicates a sudden change in trend and highlights strong market forces.

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