Reading candle charts: Cryptocurrency trading accreetors
Cryptocurrencies such as Bitcoin and Ethereum are becoming more and more popular in recent years. However, moving in a complex world of cryptocurrency trading can be overwhelming for self -proclaimed investors. The tool that turned out to be a valuable resource for dealers are the charts of the candlestick. In this article, we will analyze how we read and use candle schemes to get insight into cryptocurrency prices.
What are candlesticks?
Candle schemes are a type of chart tool used in technical analysis to visualize price movements over time. Each candle represents the opening and final prices for a certain time and all open interest (number of overdue units).
Candle types
There are different types of candles, but here are one of the most common:
* hanging hammer : a candle that is created when the closing price is lower than the opening price.
* Inverted hammer : a candle that is created when the closing price is higher than the opening price.
* Doji : A candle that creates a small body with a long cock, which indicates indecision or lack of conviction on the market.
* oldka : a candle that creates at the end of the trend down, which indicates a possible reversal.
Reading candle charts
To effectively read candle schemes, it is important to understand the following:
- Open and closing prices : These two prices represent opening and closing values each day.
- The body of the candle : The body of the candle represents the price movement in time.
- Witches’ length : The length of the wick on both sides of the candle represents the size of the price movement.
interpretation of the candlestick ticket
Here are some typical candle designs and their interpretations:
* candlestick pattern 1 (hammer) : A strong trend with a small body.
* candlestick’s pattern 2 (opposite hammer) : A strong trend down with a small body.
* candlestick 3 (doji) : Balanced market without a clear direction of the trend.
* candlestick pattern 4 (Shooting Star) : Trend down with a weak or uncompetitive reversal.
Use candle patterns to identify patterns
Here are some ways to use candle patterns to identify patterns and predict price movements:
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- ** Use the candlestick pattern to confirm the diagram signals
Tips for reading the candlestick charts
- Exercise, exercise, exercise
: the more you practice reading candle charts, the better you interpret you.
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Diploma
Candle schemes are a powerful tool for sellers for analyzing cryptocurrency markets. If you learn to read and interpret these diagrams effectively, you can get insight into cryptocurrency prices and make more and more known commercial decisions. Remember that to identify reversal points, to confirm the signals of patterns and predict trend changes, you can use candle patterns.