Understanding candlestick charts is one of the essential skills for cryptocurrency traders!
Hello everyone, I am Teacher J. I have carefully organized basic knowledge of candlesticks for beginners and will provide some possible trading suggestions based on real market analysis, so please be patient and read on~
Teaching someone to fish is better than giving them fish!
I will continue to update related content, including naked candlesticks, chart patterns, technical indicators, and other practical techniques.
Whether you are a beginner or an experienced trader, there is always something to learn and review!
You don't need to learn a lot; focus on mastering the essentials! Always maintain a humble attitude towards the market and a lifelong learning mindset!
This issue is part of the naked candlestick series, explaining fully naked candlesticks. Like and bookmark this article to easily analyze the market!
Below is the recent hottest XRP 1-hour live analysis👇
We found 3 fully naked candlesticks (special candlesticks), marked as 1, 2, and 3.
Step ①: Determine the overall trend: Is it sideways, upward, or downward?
It is not difficult to see that the current overall price level is enveloped by a long red candlestick, indicating a "sideways state," where bulls and bears are continuously consuming each other.
At the same time, it can be observed that during December 4, there was an attempt to break through the opening price of the first fully naked candlestick, which failed.
Step ②: Since it is sideways, what resistance levels are constraining it?
The overall sideways range falls within the range of the long red candlestick, being enveloped by it.
Local small-range resistance is established through some special candlesticks:
Observe the candlesticks and draw a horizontal line that touches as many points as possible, representing that this price level has been tested multiple times and formed resistance, which is the "closing price of candlestick 2" (draw a horizontal line at its closing price, and you will find that many subsequent points accurately fall at this price level, proving that this special price level has resistance) and the "opening price of candlestick 3."
The area between these two price levels is our small resistance range within the sideways range.
Drawing lines requires continuous attempts, with the principle: many points make a line.
Possible trading suggestions:
Sideways observation: The pressure from the long red candlestick is significant, and combined with AICoin's chip distribution feature, it can also be seen that the resistance level is at point 1.
Long position: Wait for a breakout of the 2-3 range with a long green candlestick before placing a long order, and set your own take profit and stop loss.
Short position: Place a short order after hitting point 1 to profit from the sideways market, and set your own take profit and stop loss.
⚠ Note: The above trading suggestions do not constitute investment advice and do not recommend any specific cryptocurrency. Please trade rationally within your capabilities!
Recently, there have been many counterfeit AICoin websites. Please only recognize the ".com" domain!
I am Teacher J, see you next time!
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