Thread by @dtr_trading

🧵Quick little thread on #candlesticks

Candles are a big part of my day to day analysis and there are 5 main candle types. Same principles for bearish candles.

📣Please share if you find this helpful

1. Full Body😃
2. Hammer🔨
3. Normal Body🧍
4. Doji / Neutral☁️
5. Weak🍦

1. Full Body

🔑 minimal or no wicks.

Means the buyers or sellers were in control the entire time. They are dominating the tug of war.

🔑🔑A Full body candle should be accompanied with big volume

2. Hammer - 2nd strongest candle🕯️

👀Top wick shouldn't be larger than the body of the candle + bottom wick is at least 2x the size of the body

🔑Means sellers tried to take control but were beaten back by buyers.

3. Normal Body 🧍

The larger the wicks the weaker the candle.

🔑 Avoid normal body candles where the top wick is larger than the bottom wick or larger than the body of the candle.

4. The Doji 😑

Neither buyers or sellers were able to take control. Indecision is the worst decision.

🔑Can indicate a lack of momentum or consolidation. Sometimes even acts as a reversal candle. Caution ahead

🔑🔑Thin some of your position after a doji and lock profit in.

5. Reverse Hammer - Mr Softee 🍨

This is the weakest bullish candle. It is a reverse of the hammer.

🔑Tells us sellers are pushing buyers down and buyers are holding on for dear life. Time to get out.

🔑🔑 never enter right after this candle. Wait for extra confirmation.