How to Read Crypto Candlestick Charts: Complete Guide

How to Read Crypto Candlestick Charts

Candlestick charts are the foundation of technical analysis. Master these patterns and you'll read market sentiment like a professional trader.

Anatomy of a Candlestick

Each candle shows four price points: - Open: Price at period start - Close: Price at period end - High: Highest price during period - Low: Lowest price during period

Green candle: Close > Open (bullish) Red candle: Close < Open (bearish)

Essential Candlestick Patterns

#### Single Candle Patterns

Doji — Open and close are almost equal. Signals indecision, potential reversal.

Hammer — Small body, long lower wick. Bullish reversal at support.

Shooting Star — Small body, long upper wick. Bearish reversal at resistance.

Marubozu — No wicks. Strong momentum in direction of candle.

#### Two Candle Patterns

Engulfing — Second candle body completely engulfs first. Strong reversal signal.

Harami — Small body inside previous large body. Weakening of current trend.

#### Three Candle Patterns

Morning Star — Bearish → small doji → bullish. Strong bullish reversal signal.

Evening Star — Bullish → small doji → bearish. Strong bearish reversal signal.

Three White Soldiers — Three consecutive long green candles. Strong bullish momentum.

Timeframe Guide

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