Trading 101: How to Trade? Candle Stick Types and How to Predict the Next Candle

in cryptocurrency •  6 months ago

Trading is a complicated concept where you can get rich over night or lose your entire savings. While experts state 95% of day traders lose money, it is not that hard to get into that top 5% and make bank from day trading. You just need to follow 3 basic steps;

1- Take your emotions out of the equation, getting emotional = getting wrecked

2- Have Stop-Loss in place, you don't want/need to experience your funds dropping 60% in value, sometimes 3% loss after 20% gain doesn't feel that bad

3- Know and act upon the trend and the candle patterns

#1 is pretty self-explanatory. #2 is a little bit tricky here is why. After winning a couple trades or losing a couple trades, you will either feel like you got this trading all figured out and get over confident or you have lost some trades and telling yourself "I can't lose 5 in a row". Both of these decisions are based on emotions and that's when you trade irrationally and start relying on your"luck". If you only stick with what you know and stay focused on the big picture, there is a lot of room to make money in this market. 

#3 Understanding the trend and predicting the candle sticks

Trend is a lot easier to see than predicting the next candle stick. If price has been going down for sometime and there is still a lot of room to go down till the next support line, you know it's on a down trend you can potentially "short" (betting the price will go down) pretty confidently. However, it is important to know when the trend is going to reverse, so you don't lose money. Some of the patterns occur more frequently than others such as; double bottoms and head and shoulders pattern. Here some examples of Bull trend, Bear trend and reversal patterns.

Candle sticks are a bit more complicated to predict because they occur at a shorter period of time and you don't have as much indicators or data to work with. However, that's where the real money lies as it requires more hands on work than trading. If you can predict the color of the candle stick then you can start betting on that make 50-80% ROI within minutes. The shape of a candle is bound to change as the price fluctuates that tricks you into thinking the candle is gonna be a hammer type however, as the price changes the candle ends up as a bearish spinning top. It is vital to wait until the candle is about to close before making a decision. Here some examples of different candles in different market conditions. Buy Bitcoin safely from Coinbase : My Favorite Exchange Binance: No trading fee exchange CoinEx :

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

Great article, thanks for sharing. There needs to be more articles like this to allow mass adoption. Keep up the good work!


Thanks mate! I will keep publishing more of these

I'm glad you actually provided some details. Too many people just fluff when it comes to trading and don't actually provide anything meaningful.


trading is a very complicated area. You need to have your TA ready and you need to be prepared to control your emotions. At the end of the day, you win some you lose some. As long as you are winning more, you are golden

To listen to the audio version of this article click on the play image.

Brought to you by @tts. If you find it useful please consider upvoting this reply.

You got a 3.85% upvote from @postpromoter courtesy of @cryptoemir!

Want to promote your posts too? Check out the Steem Bot Tracker website for more info. If you would like to support the development of @postpromoter and the bot tracker please vote for @yabapmatt for witness!

Dear author, I really like your content! You’re writing in a very interesting manner!
I think my last post will also be interesting for you. Please, upvote it! I’ve upvoted your in advance.