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#Gate13周年 Candlestick Core Practical Training: Determining the Strength and Weakness of a Single Candlestick, Accurately Judging Bullish and Bearish Momentum
Hello everyone, I am Song Song Wen Wen.
This technical series has been updated with 11 articles, covering trends, structure, support and resistance, breakouts, positioning, and mindset—fully covered.
Today, we go deeper into the essence of candlesticks, not relying on indicators—only judging the strength and weakness of a single candlestick, understanding capital momentum, and making an early prediction of where the market will go. Pure hardcore technical analysis.
1. Why is it that when you look at candlestick charts, you always can’t tell strength from weakness?
Most people only look at yin and yang:
Bullish candle = bulls are strong, bearish candle = bears are strong
This is the most basic wrong understanding.
With the same bullish candle,
some are genuine bullish attacks, while others are just weak rebounds that lure buyers;
With the same bearish candle,
some are bears grinding down, while others are only a brief sell-off to shake out and churn up trading.
To judge bullish vs. bearish, the core comes down to three points:
body size, the length of the shadows, and the closing position.
2. Three standards for strong bullish candlesticks
1. A full, elongated body, with extremely short lower shadows or no lower shadows at all
Funds take the initiative to buy, and the support below is extremely strong—bears have no ability to mount a counterattack.
2. The close is at the high price of the day
At the end of the session, price strongly holds above the highs. Bulls are unwilling to pull back, and their drive to attack is intense.
3. A breakout of a key level accompanied by a strong bullish candlestick
Structure + candlestick momentum resonate together; this is a real bullish scenario, not a short-term rebound.
Beware of weak bullish candlesticks:
Long upper shadows, a tiny body, and a close back down. It looks red, but in reality bulls are weak—an upside-down reversal lower can happen at any time.
3. Three standards for strong bearish candlesticks
1. A full, solid body, with extremely short upper shadows or no upper shadows
Funds are concentrated in selling. The sell pressure above is heavy, and bulls have absolutely no resistance.
2. The close is at the low price of the day
Price keeps weakening into the close. Bears keep exerting force, and the downside momentum continues.
3. Breaking below a key support with a large bearish candlestick
A structural breakdown combines with bearish momentum—the downtrend officially begins.
Beware of weak bearish candlesticks:
Long lower shadows, a dried-up body, and a close that is pulled back into recovery near the end of the session. This is only a bear lure and a shakeout—do not blindly chase shorts.
4. Two types of high-risk deceptive candlestick patterns—absolutely do not participate
1. The long upper shadow “warning needle”
In a high position, there is increased volume and a long upper shadow. Bulls surge up but meet resistance. This is a main-operator distribution signal; afterward, it will most likely pull back.
2. The long lower shadow “probing needle” to search for the bottom
At a low position, a long lower shadow tempts bulls upward. It includes a brief sell-off and then a rally that draws in retail buyers. After the “deception line,” it continues to weaken.
Remember:
Abnormal wicks/shadows are often deceptive setups. Only a full-bodied candle is the true momentum.
5. Candlestick strength/weakness + structure: advanced combination usage
1. Uptrend
During pullbacks, only look at short-shadow small bearish candles—this is a benign correction and a low-buying opportunity;
If you see long upper shadows and large bearish candles, be alert for a trend reversal.
2. Downtrend
During rebounds, only look at short-shadow small bullish candles—this is weak repair and a high-shorts opportunity;
If you see long lower shadows and large bullish candles, be careful: the “falling” can turn into a regime change.
3. Ranging market
Candlestick bodies are generally small, shadows are messy and mixed. Bulls and bears are roughly balanced—reduce high-frequency trading.
#四月发帖挑战
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