Did you know that there is a chart in the trading world called Candlestick?
No, this is no ordinary candle for blackout. You can use this stick to understand crypto asset charts. This graph or chart usually shows the time along with the rise and fall of the price.
Candlesticks demonstrate this by visually representing a measure of price movement in different colors. On Indodax, the colors you might usually see are green and red. Traders use candlesticks to make trading decisions based on regularly occurring patterns that help predict short-term price direction.
From the candlestick form below, there are some interesting info that you can see as technical analysis. There is the first price or open level, the final price or the close level, the highest price is high, and the lowest price is low.
The green candle stick shows the price movement at the end of the period higher than the first price or the Open level. This incident is also known as the Bullish candle, which means that the price at the Close level is greater than the price at the Open level.
In addition, the red candlestick indicates that the Close price is lower than the first price at the Open level. This is commonly known as a Bearish candle, which means that the price at the Close level is smaller than the price at the Open level.
Then, you can also see that there is a thin line located at the top of the candlestick. This line is also known as the upper shadow, this is the history of the price during that period in reaching its highest level until it enters a close position. Then, the thin line under the candle is called the lower shadow. It is the history of the price in that period in going to the lowest price when it enters the close level.
For details, you can also watch the Indodax Academy Tutorial which discusses Candlesticks here.
Or click here for questions and answers about candlesticks. So, for the next article, what are the questions from you?