What is the 3 candle rule in trading?
The 3 candle rule in trading is a technical analysis technique that involves observing the price action of a security over a specific time frame, typically represented by three consecutive candles on a price chart. This rule aims to identify trends and potential trading signals based on the patterns formed by these three candles.
What is the 3 candle rule?
Can you explain the concept of the 3 candle rule in cryptocurrency trading, and how it is used to identify potential trends or reversals in the market? Specifically, what do each of the three candles represent, and how do traders interpret their positions and sizes in relation to each other to make informed decisions?