Japanese Candlesticks: My Personal Guide to Understanding Market Movement

Today, I will share with you my journey with candlesticks, which changed my perspective on technical analysis. As a trader, I found myself immersed in a sea of various types of candlesticks, which became my own language in reading the market's pulse.

Marubozu Candles: The Ultimate Power in the Market

When I first saw a Marubozu candle, I felt its overwhelming power! These candles have almost no shadows, reflecting complete control from one side - either the sellers or the buyers.

These candles never lie! When you see blue Marubozu ( bullish ) in an upward direction, know that the path is clear for an upward move. However, if they appear in a downward direction, be cautious - it may be a coming reversal!

I remember a time I lost a lot of money because I ignored a sudden red Marubozu candle that appeared in a rising trend. It was a clear signal for a reversal, but I thought I was smarter than the market!

Doji Candle: When the Market Hesitates

The Doji is a candle of indecision and hesitation... The opening and closing prices are almost equal. When I see it, I know that buyers and sellers are in a balanced struggle and that uncertainty dominates the market.

Platforms love to sell us the idea that candles tell us about the future, but the truth is that it is the big players who manipulate us. Nevertheless, the Doji candle remains one of the most honest signals for me!

The Master Candle: The Mother Candle that Rules Them All

I love the concept of the master candle! Imagine a strong candle that engulfs the movement of 4-7 upcoming candles... this is true power! And don't believe all the platforms that sell you complex strategies - the master candle alone can tell you a lot.

I remember how I made my biggest profits when I relied on breaking the master candle after five candles. The market can sometimes be incredibly simple!

How to Verify the Accuracy of Japanese Candlesticks?

There are three essential things that must be present:

1. Wait for the candle to close - never rush!
2. Connect the candle to support and resistance levels - the candle alone is not enough.
3. Integrate it with your overall strategy - candlesticks are part of the game, not the whole game.

But let me tell you a secret: sometimes all this technical analysis is just nonsense! In the end, the big whales are the ones who move the market and manipulate us small traders. But at least, learning candlesticks gives you a better chance of survival.

A Simple Strategy for Candlestick Trading

I tried a simple strategy using EMA (20, 60, 100) with candlestick patterns, and it gave me amazing results!

When prices pull back towards the EMA indicators and a strong candle like a hammer or engulfing pattern appears, this is an opportunity to enter. But remember: the market does not care about your feelings or analyses - the market does what it wants.

Setting the stop loss 10 pips above the entry candle has protected me from a lot of losses. Don't be fooled by the idea of "trading without a stop loss" - it's financial suicide!

One of the biggest mistakes I have seen beginners make is trying to apply candlestick patterns without looking at the overall picture of the market. I myself fell into this trap!

Candlestick charts are not magic, but they are a powerful language that helps you understand market psychology. Those who master them have an advantage over others.

Learn about candlesticks and practice in a demo account before risking your real money. The market is harsh and unforgiving, and the best lesson I learned is: patience, then patience, then patience.