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How to Read 1 Minute Candlesticks for Profitable Trading

Those of you who have been on Forex for a long time may have often followed the term candlestick. This one pattern must be understood by a trader in order to identify the best stage that can be obtained according to market movements.

For newcomer stock traders, the method of reading a 1-minute candlestick is an important matter that must be understood so that it can reduce difficulties when faced with this type of stock chart.

How to Read 1 Minute Candlesticks for Profitable Trading

Candlestick itself is a term commonly used in the trading world to describe one type of chart in the form of a paraffin bar. The chart is a reflection that shows the state of the stock market at a particular time frame.

Guide to Practice Reading 1 Minute Candlesticks

In the Forex Online Trading novel written by Sawidji Widioatmodjo, it is said that there are many methods of reading candlesticks in trading. However, this can be circumvented by creating a pattern of movement from the type of currency used when doing business.

Meanwhile, in the novel titled Candlestick & Application Indonesia made by Hendra Syamsir, said that the movement of shares or goods must be in the form of escalation or depreciation of net figures. Therefore, it is important for stock players to practice the right strategy in carrying out stock trading based on market conditions.

Traders generally execute trades with a one minute time frame. Even so, not a few people think that the procedure is one of the most risky strategies. Therefore, it means to know how to read a candlestick in a minute.

One of the widely used trading strategies is the scalping method, which is a method that is tried using time frames between 1-15 minutes with the aim that traders can get profits quickly.

Next, this is a guide to practicing the 1 minute candlestick reading method that you can practice.

1. Make sure the time frame

This is important to try as an early stage in reading market movements. Because you want a duration of one minute, that 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 style

After determining the time frame or duration span that you want to use, read the stock price style based on the pattern that has been studied above. Candlestick type charts usually show a variety of patterns and can usually be divided into bullish patterns (a rising market situation) and bearish patterns (a declining market situation).

3. Know the support-resistance of stock prices

Support is the lowest limit used to protect stock prices from falling back down, on the other hand resistance is the highest limit used to protect stock prices so they don't face an escalation and then break through. By knowing these two things, you will find it easier to analyze stock prices.

4. Analysis of the momentum of stock price movements

After carrying out the 3 stages above, it's time to analyze the movement of the stock whether you should hold on or take profit. By reading the 1 minute candlestick method, traders can execute a ‘buy’ or ‘sell’ script according to market conditions to optimize profits.

In the usual way, candlestick patterns are generally accompanied by a short time embedding. Well, this emendation opportunity is generally used by traders to minimize the formation of mistakes.

Meanwhile, there are several guidelines that can be used to optimize the use of candlesticks in stock trading, namely:

  • Analyze the origin of stock movements by reading the candlestick signs so you can speculate whether it leads to success or not.
  • Take advantage of the articulation of candlestick patterns for short time trading.
  • Avoid buying when the stock price has risen more than 5 percent.

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