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Get your small stool and notebook ready! This article on Candlestick valuable insights is a must-read for Newbies and a good reference for Crypto Veterans!
First, clarify the core structure of the Candlestick: opening price, closing price, highest price, lowest price—these basic definitions are understood by everyone, but what really trips people up in trading is not forgetting the concepts, but getting the order of judgment wrong!
Most newbies are accustomed to "first looking at the Candlestick, then inferring the market": seeing a long upper shadow bullish candle and casually saying "there's pressure" or "pulling back after a rise", yet they don't really understand: how did the price get to this position? Who was the first to take action? Who followed passively?
What you really need to practice is reverse thinking:
- If I were a bear, at which point would be most advantageous to enter the market?
- If I am a bull, are there any signals to exit the position before this Candlestick forms?
Remember: a Candlestick is a "compressed result" of a market trend and must not be judged in isolation!
A bearish candlestick appearing in an uptrend and one appearing at the end of a downtrend have vastly different meanings. When looking at candlesticks, it's not about the color and shape, but about its contextual logic—what rhythm change is formed with the preceding and following candlesticks? At which stage of the trend is it?
If your analysis is just about drawing a bunch of lines and circling some Candlesticks, but you can't clearly explain "who is leading the market", "who is being squeezed out", "who is trying to reverse the trend", then it is essentially just hindsight interpretation, rather than a pre-emptive judgment.
Understanding the core of Candlestick is not about memorizing patterns or reciting terms, but about repeatedly asking yourself:
Who caused this Candlestick? Is it the bulls, bears, or sidelined funds that are at play?
Is there continuity in this action?
When is it a signal worth betting on? $BTC $ETH #美停摆危机或将结束?