Japanese candle sticks pattern

Most times we focus all our energy in technical analysis indicators abd technical analysis strategy, forgetting that even te Japanese candle sticks are really used to monitor the market price of an asset over a period.

The Japanese Candlestick is a widely used analysing tool that most people underestimated for no serious reason. This technique is used to check and monitor price movements in crypto market. As the name implies It developed in Japan and became famous because of to its testified effectiveness in producing prediction before making trading moves and price of asset.

The most common features which are used to produce quality siginals, is the body of each candle sticks and the wicks of the candlesticks, below i will be careful in the definition of the body of each candle sticks and the wicks of the candlesticks which could be long or short.

✓ Body:

The body shows or displays the opening and closing prices for an asset during the given time. So therefore if the closing price of the asset is higher than the opening, the body of the candlesticks is usually displaed in a green color which is also known as a bullish candlesticks. Other, if the opening price is higher than the closing price for the asset, the body issee with a red colored body.

✓ Wicks:

These are vertical lines, known as wicks or shadows in the crypto market, there are usually extend upwards or downwards from the body. Ther are usually highest high signal and lowest prices signal, also the determine the power of the trend because the longer the wick the weeker the force of the traders

1. Some Types of Candlestick Patterns:

✓ Doji:

The Doji candlesticks are seen in the crypto market chart when the opening price and closing prices of the asset are very close to equal. That is to say this where you see the smallest body of a candle sticks, in this case the both wicks are longer than the body so well. This case senero bring about the a cross looking candlestick in any price chart. Even though it's really rare, It usually gives reversals signals to traders.

doji on sol/USDT before the bullish run

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✓ Bullish Engulfing:

The Bullish Engulfing is Usually seen or called a two candle pattern because unlike the doji candlesticks that occurs on just one indicator, the Occurs in two candlesticks. It usually starts on the smaller red candle that it's whole body is covered you bigger green candle. Thats to say the Open and close of the red candle is lower than the open and close of the green candlesticks. This candlesticks usually means a bullish trend reversal is on its way, so therefore traders uses the opportunity well.

From Bybit application

Bullish Engulfing Candles and ND bearish Engulfing Candles on SOL/USDT

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✓ Bearish Engulfing:

Similarly to Bullish Engulfing, the Bearish Engulfing is also seen or called a two candle pattern because unlike the doji candlesticks that occurs on just one indicator, the occur in two candlesticks.

It usually starts on the smaller green candle that it's whole body is covered you bigger red candle. Thats to say the Open and close of the green candlesticks is lower than the open and close of the red candlesticks. The Bearish Engulfing candlesticks usually means a bullish trend reversal is on its way, so therefore traders uses the opportunity well.

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✓ Hammer:

The list won't be complete without adding hammer candlestick because there are also powerful, the are usually seen with a small body (not as small as that of doji) with a long lower wick and in most times no or very short upper wicks, it also signifies bullish reversal after a bearish trend.

From Bybit application

On Sol/USDT hammer candle doing it's miracle.

✓ Shooting Star:

Shooting star candlestick is also similar to hammer candlestick because there are also very effective, the are usually seen with a small body (not as small as that of doji) with a long upper wick and in most times no or very short lower wicks, it also signifies bearish reversal after a bullish trend. Its the opposite of hammer candlesticks.

From Bybit application

✓ Three Black Crows:

This a powerful candlesticks pattern that shows that it's the beginning of a bearish trend and the end of a bullish signals, it usually seem as 3 big red candle sticks following each other, their body are usually big and the thick to show how powerful they are and how trustworthy they are. They usually seen in a bearish market

From Bybit application
After the Three Black Crows yo would see the market going bearish.

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✓ Morning Star:

This a powerful candlesticks pattern that shows that it's the beginning of a bullish trend and the end of a bearish trend, it usually seen as 3 big red candle sticks following each other, their body are usually big and the thick to show how powerful they are and how trustworthy they are. They usually seen in a bearish market. There are the opposites of the Three Black Crows candlesticks.

After the morning star there was a strong bullish run .

Thanks for going through, please note all images are from my mobile applications, Bybit exchange and Canva. Remember starrchris cares ❤️❤️😍..