GUIDE TO JAPANESE CANDLES

Hello everyone!
Today we will discuss JAPANESE CANDLES!
Let's try to understand what they mean and how to use this information in your trading.
LET'S GO!

Bullish and Bearish PIN BAR

A bullish pin bar is a candle with a long shadow, the body of which is located at the top of the candle.
Such a candle was formed under the pressure of sellers who were able to push the price down, after which buyers turned on, who pushed the price above the opening and were able to gain a foothold there.
This strength of buyers signals to us that sellers are losing dominance in the market and a trend reversal is possible soon.

A bearish pin bar has a mirror structure relative to a bullish pin bar.
Buyers can't keep the price high, and sellers take up the trend.

At these points, we can expect the early completion of the previous impulse and a possible trend change.

Bullish and bearish harami

Bullish harami consists of two candles: the first is a long full-bodied candle, the second is small with a small body.
After a strong downward impulse (the first candle), a sharp reversal begins (the second candle).
At the same time, the second candle often opens with a gep.
The momentum of the first candle is the last spurt of the market, after which buyers take over the market.
The gap in the opening of the second candle and the closing of the first confirms the strength of buyers.

Bear harami has a similar structure, but a mirror movement.
The last impulse of buyers, was replaced by the gep of sellers.
This sign indicates a possible reversal.

Bottom and top tweezers

These Japanese candles are characterized by two long full-bodied candles.
After the first strong impulse, there is a sharp reversal in the opposite direction.
This reversal has a huge force, as it is able not only to turn the price against the main trend, but will immediately gain a foothold low.
This figure is called tweezers, as the price pierces the level and abruptly returns back.
A very strong signal for a reversal.

Conclusion

These patterns are very popular and useful.
The ability to use them correctly in trading can bring significant profits.
These patterns help to determine the price reversal, which contributes to a better entry into the position.

Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻