Learning to read a candlestick chart is an important step in any day trading journey.
- Your chart shows a strong bullish trend from March 25 to April 1, with a series of higher highs and higher lows.
- Most candlesticks in this period are green, pointing to buying pressure.
- The price peaked around April 1, reaching approximately 3133 before starting to decline.
- Around April 1 – April 2, the price started pulling back from the peak.
- Several red candles indicate that sellers have gained control.
- The last few candles suggest consolidation, meaning the market is deciding its next move.
- A potential reversal pattern could be forming if the price breaks below 3107.63 support.
- If the price finds support here and forms a strong bullish candle, the uptrend may continue.
- If a strong bearish candle breaks below 3100, it may signal a trend reversal or a deeper pullback.
The next question is how do you use the information gained from the chart?
- Buyers might look for confirmation of support around 3107 – 3110 before entering long positions.
- If the price breaks below 3107, sellers might consider shorting towards the next support levels.
- Breakout traders might wait for a strong candle breaking above 3133 or below 3100 for a clearer trend direction.
