How to Profitable Trading with 1 Minute Candlestick Reading

Those of you who have been in the Forex world for a long time may have often heard the term candlestick. This one pattern must be understood by a trader in order to know the best steps that can be taken according to market movements.

For beginner stock traders , how to read a 1-minute candlestick is an important thing that must be mastered so that it can reduce difficulties when faced with this type of stock chart.

Candlestick itself is a term commonly used in the trading world to describe one type of chart in the form of a candlestick. The graph is an illustration that shows the condition of the stock market in a certain period.

Initially, candlesticks were used in the 17th century to calculate rice price movements. However, over time, this candlestick pattern is then used to analyze the movement of stocks, commodities, forex, and so on.

By reading candlestick patterns , investors and traders can maximize the potential profits generated from trading stocks. This is caused by candlestick patterns that can show early signs of a reversal or reversal.

Although candlesticks are used as a benchmark in analyzing stock market movements, traders usually have their own methods of analyzing each movement. Therefore, it is important to know what are the advantages and disadvantages of this one candlestick pattern.

One of the advantages of candlesticks is that they can be easily understood and remembered. Unfortunately, candlesticks cannot stand alone so you have to use other indicators to be able to observe stock movements.

Then, how to read a 1 minute candlestick to increase the potential profit in trading ? Check out the following explanation.

How to Read Candlesticks in Trading

As mentioned above, candlestick patterns are charts that are commonly used as indicators to determine stock price movements. Because stock price patterns tend to fluctuate, you need to read candlesticks every time, especially if you want to get the maximum profit from trading .

Well, one of the ways that traders are most interested in is how to read candlesticks in the following trading .

1. Pay attention to the shape and size of the candlestick body

In reading candlestick patterns , you must pay attention to the body part of the candlestick. If the body of the candlestick is large with a small tail, it means that the stock price movement is strong. The smaller the tail of the candle, the greater the strength.

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2. See the shape and size of the candlestick wick

The wick ( shadow ) on the candlestick pattern shows information on price fluctuations that move according to the duration of the candlestick . The size of the wick body is affected by volatility so that when volatility occurs, the candle wick will be longer than the body .

The wick of the candle that extends downwards indicates the encouragement of market participants to lower the stock price. This moment is usually used by market participants to make purchases so that the market price will increase. This condition is called a bullish reversal .

Meanwhile, the wick that extends upwards indicates that market participants prefer to take profit. This condition is known as a bearish reversal .

3. Read the ratio of the body and the wick of the candlestick

When the candle has a body that is between the two axes, this indicates that the forces between buyers and sellers are in a balanced condition. This position usually puts the trade in a doubtful position and makes the tail longer and smaller.

4. Read the position of the candlestick body

The position of the candlestick body at the end indicates resistance. Meanwhile, the position of the candlestick axis that is above and below it or is in the middle indicates market doubt.

Tips for Learning to Read 1 Minute Candlesticks

Traders usually trade with one minute time frame . Even so, not a few people also consider this method as a high-risk strategy. Therefore, it is important to know how to read a candlestick in one minute.

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One of the widely used trading strategies is the scalping technique, which is a technique that is carried out using a time frame of 1-15 minutes with the aim that traders can make profits quickly.

The following are tips on learning how to read 1 minute candlesticks that you can practice.

1. Determine the time frame

This is important to do as an initial step in reading market movements. Since you need as much as one minute, it means you don’t have enough time to be able to do anything else. So, focus on 1 minute of your time to read the candlestick.

2. Read stock price trends

After determining the time frame or time range to be used, read the stock price trend based on the pattern studied above. Candlestick type charts usually show various patterns and can generally be divided into bullish patterns (increasing market conditions) and bearish patterns (decreasing market conditions).

3. Know the support-resistance of stock prices

Support is the lowest limit used to keep stock prices from falling again, while resistance is the highest limit used to keep stock prices from rising continuously. By knowing these two things, it will be easier for you to analyze stock prices.

4. Analysis of the momentum of stock price movements

After doing the three steps above, it’s time to analyze the movement of the stock whether you should hold on or take profit. By reading a 1 minute candlestick , traders can do a ‘buy’ or ‘sell’ scenario according to market conditions to maximize profits.

In general, candlestick patterns are usually followed by short-term corrections. Well, this correction opportunity is usually used by traders to minimize the occurrence of errors.

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Meanwhile, there are some tips that can be used to maximize the use of candlesticks in stock trading, namely:

  • Analyze the history of stock movements by reading candlestick signals so you can estimate whether they are likely to succeed or not.
  • Use candlestick pattern readings for short-term trading .
  • Avoid buying if the stock price has gone up more than five percent.

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