Candle patterns on the 5-minute chart: basics for beginners 📈📉📈
If you are just starting to trade, begin with understanding candle patterns — they help "read" market sentiment and make decisions.
💡 What is a candle?
Each candle on the chart shows price movement over 5 minutes. It has:
-Body (body) — the difference between the opening and closing price.
-Shadows (shadows) — show the highs and lows.
Color:
🔴 Red — the price has fallen.
🟢 Green — the price has risen.
-Popular candle patterns:
1. Engulfing — a strong reversal, especially after a trend.
2. Hammer — a signal of possible growth after a decline.
3. Hanging Man — a possible reversal downwards.
4. Doji — uncertainty, can be a signal of reversal.
5. Three soldiers / three crows — continuation of the trend (up or down).
-These patterns are especially useful on 5-minute charts for scalping and short-term trades. The main thing is — do not trade blindly: watch the volumes, trends, and confirmations.