Candlesticks are the most fundamental elements that make up charts, and the methods to judge trends through candlesticks can be divided into 3 categories:

1: The form of the candlestick itself contains the meaning of judging the rise and fall of the market trend. For example, hammer, hanging man, engulfing pattern, dark cloud cover, and so on.

2: The combination of candlestick patterns has the meaning of judging the rise and fall of the market trend. For example, double top and double bottom candlestick patterns, head and shoulders patterns, wave break patterns, etc.

3: Candlesticks can also be combined with other indicators to judge the trend. For example, combining candlestick patterns with trend lines, channel lines, moving averages, support and resistance levels, etc., to judge the trend.

Today, I will use some examples to explain these three methods of judging trends to everyone.

1: Candlestick Patterns

A candlestick is composed of four prices: the opening price, closing price, highest price, and lowest price. The most basic function of a candlestick is to record the price. However, in the basic theory of candlestick charts, the form of the candlestick itself has the meaning of judging the trend.

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For example, the most common hammer, hanging man, engulfing pattern, evening star, morning star patterns, etc., all have the meaning of judging the rise and fall of the trend.

A few points to note:(1) The upward reversal K-line that appears in the bottom area and the downward reversal K-line that appears at the top have the significance of judging the trend reversal.

(2) In practice, these K-line patterns can be combined with the role of support and resistance levels for resonance trading.

2: K-line combination patterns

K-line combination patterns are an extended use of K-lines, referring to the fixed pattern structures formed by K-lines on the chart, which have the significance of judging the trend.

For example, double tops and double bottoms, head and shoulders tops and bottoms are used for top and bottom reversals.

For example, triangles, flags, rectangles, and so on are used in the continuation of the market.

Note: Try to enter the trade after the pattern breaks and the trend becomes clear.

3: K-line combined with other indicators.

K-lines combined with other indicators have the significance of judging the trend, such as trend line and channel line breaks, for example, when the price breaks through important parameters of moving averages, important support and resistance levels, and so on.The above three categories are the most practical methods for judging trends using candlestick charts in actual combat. Everyone can combine the characteristics of their own trading techniques to choose the most suitable method to use. Before engaging in actual combat, be sure to backtest these methods to understand the details of their operation and the effects of profit, and then start the actual combat.