Candlestick Basics

Real bodies show progress wicks reveal rejection. 

 Timeframe Rules 

Higher timeframes establish the true trend direction. 

 Support Floors 

Support marks price zones where buyers defend. 

Resistance Ceilings 

Resistance shows areas where sellers overwhelm demand. 

Role Reversal 

Broken resistance frequently turns into new support. 

Volume Truth 

Real breakouts require strong expanding trading volume. 

Trend Filters 

Moving averages smooth out short-term market noise. 

RSI Indicator 

RSI measures price speed and momentum shifts. 

Hammer Pattern 

Long lower wicks show aggressive price absorption. 

Risk Management 

Cap risk at one to two percent.