Best Candlestick Secrets Most Traders Miss

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Now, why are candlesticks so important? 
Candlesticks are favored by traders because  

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they offer a more nuanced understanding of 
price movement. Each candlestick provides a  

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complete snapshot of market sentiment during 
a specific period. The upper wick shows the  

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highest price reached, while the lower 
wick reflects the lowest price. The size  

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and position of the body reveal which 
side buyers or sellers was in control.

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Before diving into specific candlestick 
patterns. Let's take a moment to explore  

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two key concepts that will help you 
better interpret candlesticks. First up,  

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we have big versus small body. The size of 
the candlestick body is a strong indicator  

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of market strength. A larger body means one 
side. Either the buyers or sellers dominated  

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the session, while a smaller body reflects 
indecision or a balance between the two.

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Let's take a closer look at two examples of green 
candles. In the first example, the body is large  

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and the wicks are relatively small. This suggests 
that buyers were in strong control. The price  

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opened lower. Sellers initially tried to push it 
down, but buyers quickly stepped in, driving the  

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price higher and it closed near the sessions high. 
This is a clear sign of strong buying momentum.

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On the other hand, the second candle tells a 
different story. Here, buyers still manage to push  

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the price higher, but sellers stepped in at the 
peak, driving the price back down. Although the  

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price closed higher than it opened, the smaller 
body indicates a closer contest between buyers and  

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sellers. Next, let's talk about large wicks. Wicks 
foreshadows are just as important as the body.

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They provide key information about price 
rejection, which occurs when the market  

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attempts to move in one direction but ultimately 
reverses. For example, a long upper wick suggests  

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that buyers try to push the price higher, but 
sellers overpower them, creating resistance.  

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Similarly, along lower wick indicates 
that sellers push the price down,  

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but buyers stepped in and drove 
it back up, signaling support.

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Wicks often serve as early warning signs of 
potential reversals. If you spot a long week  

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above the body, it could indicate that 
the price is encountering resistance,  

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making it difficult for buyers to push higher. 
Conversely, along Wick below the body suggests  

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that buyers are stepping in to prevent the price 
from falling further. So if you're ready to deepen  

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your knowledge and elevate your trading, 
don't miss the full video on our channel.

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Watch now!