CRYPTO CANDLESTICK CHART

Candlestick chart, also known as the Japanese candlestick chart, is a technical analysis method that gives investors an idea about financial price movements and the course of the stock market. Technically speaking, each candlestick represents a 24-hour day. A monthly candlestick chart represents 20 trading days with 20 candlesticks. Candlestick charts can show monthly or daily charts as well as 1-minute or 1-year charts. Candlesticks, which are similar to the same bar charts, are more practical and easier to understand than bar charts, according to the information they contain.

Candlestick charts are a popular type of chart used in stocks, currency trading, and cryptocurrency exchanges. Candlestick charts visually resemble vertical rectangles from their horizontal edges; It has projections in the form of shadows or wicks from the top and bottom. The Candlestick Chart pattern is explained as follows:

Shadow – Wick:

The vertical lines above the top of the candle are called shadows or wicks. The upper shadow on the green candlestick indicates the highest value of the price. However, the price could not hold at this value and fell. Likewise, the lower wick shows the lowest point of the price. As a result, knowing the lowest and highest points while analyzing candlesticks is the most necessary rule of technical analysis methods.

Starting price:

The opening price is the starting price realized in a certain period of time. In the cryptocurrency exchange, for example, it indicates the monthly, daily, hourly opening price of the relevant cryptocurrency.

Closing price:

The closing price is similarly the closing price in a time frame. It refers to the closing price of the relevant cryptocurrency in the hourly, daily, and monthly slices.

Body:

In candlestick patterns, the body represents the direction of the price. The body can move up or down relative to the previous candle. It makes it easy to understand trends and guides you to learn the tricks of technical analysis. The longer the body of the candle, the higher the buying or selling interest.
Cryptocurrency technical analysis methods allow us to interpret candlestick charts in various variations. There are more than 60 candlestick patterns. There are several candle formations approved by professional technical analysts on the cryptocurrency exchange. Knowing these formations gives us an advantage in cryptocurrency trading. It plays a big role in predicting trends.
There are trend-setting markets in the cryptocurrency exchange. These markets are called Bull markets and Bear markets. It points to a metaphor in both markets. In a bull market, the trend starts to rise aggressively over some time. So the cryptocurrency gains in value. A bull market developing in this direction is a behavior that should be considered when trading cryptocurrencies. It is not a long-term investment strategy for investors. If you get the bull market signal, you should understand that the trend is increasing in the selling direction.


So for example, let’s say you are buying Bitcoin in a cryptocurrency transaction. You understood that Bitcoin entered the bull market with the help of candle formations and some indicators. If you make an early purchase in this process, you will make a lot of profit with a sell transaction when the bull market reaches its peak. That is why technical analysis is very necessary for the cryptocurrency exchange. A bear market is just the opposite. The trend shows a sudden downtrend. In this process, you make a profit by buying and selling while the trend is on the rise. However, another point to be aware of is how long the bear and bull markets will last. In other words, the market can trend downwards and upwards for a long time. This trend may indicate a cycle. It may take weeks, months, or even years. With a good understanding of the relevant crypto money market and a planned technical analysis, you can carry out your cryptocurrency trading transactions in a planned manner.