Ever heard of Candlestick Halving Technique? Have you ever wondered why a Candlestick will be bullish in the beginning of a trend and closed as a Bearish candle? I bet you have jumped into a trend thinking it is bullish and end up being a bearish one. I have been there.
I will be telling you about my findings after studying the Candlestick movement for 6 months.
Everything I will be saying or showing you in this article is by me and I don’t frown at criticism.
What is Candlestick Halving Technique?
This is explained as, on any timeframe, either bullish or bearish trend, whenever a candle opens, it will spend half of its time wherever it goes to first (up or down).
If a candle opens and immediately trends up, it will spend half of its time (say 5mins or 15mins or 30mins or 1hr or 2hrs or 4hrs or daily or weekly or monthly timeframe) in the uptrend before downtrending in either a Bullish or Bearish market.
I have seen this happen more than 60% of my time monitoring the Candlesticks.
If this doesn’t happen, it means whales have entered or exited such coin.
How to use Candlestick Halving Technique to enter the market
Whenever you want to enter the market, say 30mins or 1hour timeframe, after you might have done your analysis, and the 1hr candle doesn’t open while you were monitoring it, wait for the candle to close before you enter.
But, I strongly recommend you use this technique for daily, weekly or monthly chart.
This is to prevent you falling for false breakouts.
Candlestick Halving Technique vs Bigger timeframes
To use this technique for bigger timeframes (daily, 3days, weekly and monthly), you observe the trend same way you observe the smaller timeframes.
Let me break it down.
- Daily timeframe: When a candle opens in this timeframe end it goes up first, 90% of the time, expect it to keep trending up for 12hours, which is the half-life of a daily candle.
As a matter of fact, when the candle is nearing the 11th, 12th, 13th hours, you’d be noticing the bearish trend. To confirm this, switch to 4hour or 1hour chart.
Because some people will not be using daily timeframe, if you want to see a clearer movement of the market, switch to smaller timeframe.
- Weekly timeframe: When a candle opens in this timeframe end it goes up first, 70% of the time, expect it to keep trending up for about 3 to 4 days.
Using this technique on weekly or monthly timeframe, it gives you idea of what’s to come and be ready for it provided nothing happens FUNDAMENTALLY.
Same thing for monthly timeframe. And don’t forget, if a market on weekly chart is Bullish, it doesn’t mean, the daily or hourly chart will be Bullish all through. Expect to see bearish trend and that’s because of this Candlestick Halving Technique.
But, in a strong Bearish Market, expect the market close below the opening of the previous one.
In a strong Bullish market, expect the market close above the closing of the previous one.
Do you understand?
Candlestick Halving Video Explanation
Concluding Candlestick Halving Technique
Now that I have shared with you this technique, pick up your phone or laptop, open your trading platform and study the chart to confirm this technique. When you do, share your experience in the group or in the comment section below.
The market belongs to those who are ready to learn and take actions.