Candlestick Chart暴简版：5分钟学会看懂市场trap

Have you ever been confused by the Candlestick Chart? A bunch of green and red lines can be overwhelming. Today, let's break this thing down in the simplest way possible.

What exactly is a Candlestick?

In simple terms, a Candlestick is a real-time recorder of the market. Each Candlestick records four key price levels over a period of time (for example, 1 hour or 1 day):

• Open: The price at the beginning of this period.
• Close: The price at the end
• High: The highest price reached during the period
• Low: The lowest price reached

It's very simple, isn't it? Just like keeping accounts — how much you started with, how much you ended with, what was the maximum you spent in between, and how much you had left at the minimum.

The red line and the green line are arguing

Green Line (Bullish Candle) = Close Price > Open Price = Buyers win, price moves up

Red Line (Bearish Candle) = Closing Price < Opening Price = Sellers Win, Price Goes Down

This is the comparison of the power of market participants - no one can deceive you, the rise and fall of prices reflects real emotions.

Seven Common Single Candlestick Signals

1. Spinning Top

The body is very small, and both the upper and lower shadows are long. What does this mean? There is a large divergence in the market, with both buyers and sellers competing, and neither side has been able to overpower the other. If this line appears during a bullish trend, the bulls may be tired and need to take a break.

2. Marubozu

There are no wicks, just a straight candle. This indicates that during this period, either the buyers or sellers completely controlled the situation, pushing all the way through with great strength.

3. Doji

The opening price and closing price are almost the same, looking like a cross. This indicates that the bulls and bears are in a stalemate, with neither side gaining an advantage. This is usually a precursor to a reversal—something may change next, so keep an eye on the next Candlestick.

4. Hammer

There is a long lower shadow below, with the body at the top. When this pattern appears during a decline, it indicates that the bears are trying to continue pushing down, but the bulls have firmly held the bottom. This is a signal of a bottom rebound.

5. Hanging Man

It looks like a Hammer Candlestick, but it appears in a different position - during an uptrend. Be cautious at this time, as the bulls may be running out of strength, and prepare for a pullback.

6. Inverted Hammer

The inverted hammer has a long upper shadow and a body at the bottom. It appears during a downtrend, indicating that someone is trying to bounce back at a high price, which could be a reversal signal.

7. Shooting Star

The opposite of the inverted hammer, appearing during an uptrend. It is smashed down from a high position, resembling a meteor streaking across the sky, which may signal an impending drop.

Combination Patterns of Two Candlesticks

Engulfing Pattern

Bullish Engulfing: The first candle is a small bearish candle, and the second candle is a large bullish candle that fully engulfs it. The bulls have suddenly gained strength, and it may be about to take off.

Bear Engulfing: Conversely, a large bearish candlestick engulfs a small bullish candlestick. The bears strike hard, and a decline is imminent.

Tweezer Pattern

The highest or lowest points of two Candlesticks are exactly the same, as if pinched by tweezers. This is usually a reversal signal - a bottom tweezer indicates that the price is going to rise, while a top tweezer indicates that the price is going to fall.

Final Words

The Candlestick Chart is a reflection of market psychology. If you understand the Candlestick, you can understand what participants are thinking - is it greed? Is it fear? Or is it rationality? But don't rely too much on Candlesticks; combining them with other indicators and the broader environment will allow for more reliable judgments. Remember: history will repeat itself, but it will not be an exact copy.