Thread by @SmokeyXBT

Thread: Small introduction to candlesticks

1) The Hammer

- Bullish reversal candle

- Context: During a downtrend

- Definition:

Little to no upper shadow

Small body

Long lower shadow, preferably 2x or more the size of the body

2) The Dragonfly Doji

- Bullish reversal candle

- Context: During a downtrend

- Definition:

Little to no upper shadow

Little to no body

Long lower shadow

3) The Inverted Hammer

- Bullish reversal candle

- Context: During a downtrend

- Definition:

Small body

Little to no lower shadow

Long upper shadow, preferably 2x or more the size of the body

4) Spinning Tops

- Shows indecision

- Context: Often during trends, showing that the trend is weakening

- Definition:

Small body

Symmetrical shadows

5) The Hanging Man

- Bearish reversal candle

- Context: During an uptrend

- Definition:

Little to no upper shadow

Small body

Long lower shadow, preferably 2x or more the size of the body

6) The Shooting Star

- Bearish reversal candle

- Context: During an uptrend

- Definition:

Little to no lower shadow

Small body

Long upper shadow

7) The Gravestone Doji

- Bearish reversal candle

- Context: During an uptrend

- Definition:

Little to no body

Little to no lower shadow

Long upper shadow

There are certain candlestick formations that are, by definition, not possible in Crypto. This is due to the 24/7 nature of the Crypto Markets (except CME futures)

This includes engulfings, morning/eveningstars, haramis, etc.

Basically, candlestick formations that require two candles where the first candle close and the second candle open don't coincide are basically impossible in Crypto.

High: Highest point price reached during that particular candle (Here, Daily timeframe)

Low: Lowest point price reached during that particular candle

Open: Price at which this candle opened (here, Daily Open)

Close: Price at which this candle closed (here, Daily Close)

Body: The difference between the candle open and candle close. In this example it's a bearish candle, since the candle closed below its opening price.

Upper Shadow/Wick: Difference between the High and Candle Open if it's a bearish candle, High and Candle Close if bullish candle

Lower Shadow/Wick: Difference between the Low and Candle Open if it's a bullish candle, Low and Candle close if it's a bearish candle.

8) The Tweezer Top

- Bearish reversal formation (consists of 2 candles)

- Context: During an uptrend

- Definition:

First candle closes near its high. Second candle negates nearly all or more of the gains of the first candle, indicating a complete sentiment shift.

9) The Tweezer Bottom

- Bullish reversal formation (consists of 2 candles)

- Context: During a downtrend

- Definition:

First candle closes near its low. Second candle negates nearly all or more of the losses of the first candle, indicating a complete sentiment shift.

Addition:

All these formations give signs, but by no means do they have a 100% strikerate. Like always when trading, manage your risk, and only enter a trade when your system tells you to do so.
Hope this somehow helps the less experienced people here on Twitter.