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In the field of financial trading, the 12 Golden Candlesticks is a widely followed Technical Analysis tool. It consists of 12 specific combinations of Candlesticks, which may appear during market rises or falls. The core value of the 12 Golden Candlesticks lies in its ability to reflect specific market sentiment through characteristics such as the length of the candlestick bodies and the lengths of the shadows.
Many traders view the 12 golden K as an important signal for judging market trend reversals or continuations. For example, patterns like the hammer, morning star, and bullish engulfing are often considered indicators that a trend may reverse; while patterns such as the bullish candle, bearish cannon, and rising three methods may indicate the trend's continuation.
According to the market meanings it reflects, the 12 Golden Candlesticks can be divided into three main categories: reversal Candlesticks, offensive Candlesticks, and warning Candlesticks. This classification helps traders interpret market trends more accurately.
It is worth noting that the application range of the 12 Candlestick is quite broad and can be applied to various trading timeframes, including 1-minute charts. However, although the 12 Candlestick is a powerful analytical tool, it is not an all-purpose trading indicator. Investors should not use it as the sole basis for entry, but should combine it with other analytical methods.
In practical applications, traders should first determine the overall market trend, then look for key price levels, and only then consider using the 12 Golden Candlesticks for entry. Relying solely on the 12 Golden Candlesticks for trading decisions is unwise.
Finally, an important principle is 'the closing line is greater than the sky'. This means that we can only determine whether the golden K shape has truly formed after the Candlestick closes. This is crucial for accurately interpreting market signals.
Overall, the 12 Golden K as a Technical Analysis tool provides investors with a new perspective to observe market sentiment and judge potential trend changes. However, like any trading tool, it needs to be used in conjunction with other analysis methods and flexibly applied in combination with the actual market environment.