Reply To: How to read candlestick chart for day trading

#198981
Oliver D

    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.