Candlestick in crypto: The guide that you probably lack

Do you think seeing a hammer or a shooting star on the chart makes you a millionaire? Spoiler: it doesn't work that way.

Candles are just the first step. Each candle summarizes four data points: open, high, low, and close. Green = price went up, red = went down. It's that simple.

The classic patterns that do work (with context):

• Hammer: small body + long shadow below = possible bounce after a drop
• Shooting star: appears at highs = sellers press
• Three white soldiers: three green candles in a row = strong buy
• Doji: opening and closing are equal = market indecision

The most common mistake: Believing that a pattern = guaranteed profit. False. You need:

1. Confirm with indicators (RSI, MACD, moving averages)
2. Analyze multiple timeframes (1h + 4h + 1d)
3. Respect stop-loss before entering
4. Consider the volume and liquidity

Bonus crypto: Unlike stocks, the digital market does not close, so the gaps (gaps) are almost irrelevant here.

The candle is a compass, not a treasure map. Use it within a complete strategy with risk management or you will lose money.