Candles represent many of the minds of all market participants. Candles show you the moods, emotions, and contradictions of everyone entering the market over a given period of time.

For new traders, this definition often confuses them. Because of technical analysis or calculation by formula seems more realistic. But then you will begin to realize that marketing is a giant psychological battle.

Candles reflect people's thoughts and expectations about the direction of price movement in the future. Because the market moves in "herd sentiment," similar or similar situations will occur over and over again. Crowd sentiment will generally push prices to repeat the same results as in the past, and there are even repetitive instances.

The price is rising to a very strong resistance level and many noticed before, the "swarm" knew that this was the point where the price would bounce back and they started to sell, so price action trading was formed, self-formed.

The more the crowd sells, the more intense the price drops, the more sellers it attracts ... so on and on. This type of market behavior is likely to leave a Bearish Reversal Candle, a price chart showing the sentiment of the flock.

By becoming a charted psychologist, you will learn how to recognize this bearish reversal pattern over and over again and you will expect the price to go even lower in the future when there are many crowds in groups and so on. continue to participate in the Sale.

Many traders may say that news, big banks, hedge funds, or governments have a responsibility to move markets - but if you think about the market, you will find that the psychology of the crowd is dynamic. the main force for price fluctuations.

You can't swim upstream or you'll drown, so it's your job to read the psychology of the chart to predict the crowd's reaction and go downstream with it. Knowing a lot about herd psychology can help you think of the right way to overcome challenges and exploit the opportunities that appear on the chart.

The general idea of ​​Price Action

Psychology is the main driving force behind price movements and candles are what visually reflect everyone's thinking in the market about future prices. Market participants' natural herd mentality creates repetitive scenarios, leaving convincing evidence of price movements that you can use to predict the next possible price move. with a high degree of accuracy.