Japanese Candles: What Every Trader Needs to Know (No Complications)

Have you ever looked at a trading chart and it looked like a hieroglyph? Candlestick charts are your Rosetta Stone. While other traders see boring lines, you will see stories of buyers vs sellers battling for control of the price.

Why Candlestick Patterns Are the ABCs of Trading?

If you do technical analysis, the candles are mandatory. Period. There are no shortcuts here. Each candle tells you 4 data points in a single image:

• Opening price (dónde empezó)
• Closing price ( where it ended )
• Maximum (the peak reached)
• Minimum (the ground where it bounced)

This is called OHLC. Line charts only show you the close. With candles, you see EVERYTHING.

The Patterns That Really Matter

Envelope: Incoming trend change. The first candle looks small, the second completely devours it. It's like when someone withdraws their offer and another appears willing to pay more.

Doji: Pure equilibrium. The price went up and down, but closed almost where it opened. It means that buyers and sellers are fighting for control. Total indecision = possible strong movement afterwards.

Hammer: A candle with a small body and a long wick pointing up ( or down ). Buyers pushed the price up, but sellers knocked it down. If you see this after an upward trend, it probably indicates a bearish reversal.

Hanging Man: Similar to the hammer visually, but after a decline. Sellers tried to push lower, but could not. Bullish reversal indicated.

Marubozu: “Bald” in Japanese (sin mechas). A huge body, with no or almost no highlights. It means pure power: salespeople have (o compradores) full control.

How to Use Them Without Ruining Yourself

Don't trade with ONE candle. That's speculation, not analysis. Look for confluences:

• An engulfing candle
• • a level of support/resistance
• • Fibonacci or moving average confirming
• • high volume on the candle

Minimum 3 aligned signals. This is how noise is filtered.

Pro Tip: Large Timeframes > Small Timeframes

A hammer on a daily candle is worth a thousand times more than one on a 15-minute candle. Why? Because it represents more real market strength. Institutional traders operate on daily charts, not on minute charts.

Moreover, a 1-hour candle is made up of 4 candles of 15 minutes. The long wicks you see on the hour are spikes/drops that occurred within those 15 minutes. If you see a rare wick on the 1 hour, subdivide it. You will understand what really happened.

Training is everything

Start with a demo account. No real money yet. Analyze historical charts, look for patterns, practice identifying supports and resistances using the wicks (not just closes). When you can read a candle and know what happened without thinking, then you are ready.

Professionals do not trade 100 times a month. They analyze all day, wait for perfect confluences, and open 3-5 trades. Quality > quantity.

Most traders combine technical analysis (candles) + fundamental analysis (news, reports). With candles, you master half of the game. Now add the rest.