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In the trading market, the Candlestick Chart is the most intuitive communication tool, and a deep understanding of it can help us uncover the secrets of capital flow. The Bullish line represents buyer dominance, while the Bearish line reflects seller advantages, and the length of the lines indicates the intensity of market competition. A significantly rising Bullish line may suggest that market makers are actively getting on board, while a Doji pattern may indicate that the market is about to undergo a reversal.
The length of the shadow lines also contains rich market information. A long upper shadow often indicates resistance to upward movement, while a long lower shadow may signal bottom support. However, the significance of a single Candlestick is limited; true insights come from interpreting Candlestick combinations. For example, if a long upper shadow Candlestick appears after three consecutive Bullish lines, it may suggest that the rising trend is about to end.
When we observe a series of small fluctuations in the Candlestick Chart, it may be a precursor to a significant market change. It is important to recognize that Candlestick analysis is not a crystal ball for predicting the future but rather a thermometer reflecting current market sentiment. We should use it to sense the flow of funds, rather than making blind predictions.
Before conducting any technical analysis, the primary task is to identify the dominant forces in the current market. Only after clarifying this can one decide whether to go with the trend or against it. The market is always full of opportunities; the key lies in maintaining a rational analytical perspective and a flexible response strategy. By continuously monitoring market dynamics and deeply analyzing key points, we can find certain opportunities amidst market fluctuations and achieve steady investment returns.