How to use the candlestick for market analysis of cryptocurrency
The world of cryptocurrency negotiations is a complex and accelerated environment, due to market feelings, economic indicators and other factors, prices float rapidly. The use of candlesticks is an effective way to analyze market analysis and make founded negotiation decisions. In this article, we examine how to use candlesticks for cryptocurrency market analysis.
What are candle holders?
Candle holders are a kind of technical analysis tool used in various financial markets, including actions, future and cryptocurrencies. The diagram displays a closing price of a device over time, with additional lines and symbols that represent different types of data. Each candle represents a single day of negotiation or bar period.
Parts -Candida -Diagram Access
The standard candle graph consists of four main parts:
1.
2
Shadow
: A smaller body under the main body, which represents the difference between the closing price and the opening price.
- Wick : The long, thin line spreads from the top and bottom of the diagram, depicts opening and closing prices.
- Pips : The distance between two consecutive candle bodies.
How to use the candlestick for cryptocurrency negotiations
When analyzing the cryptocurrency markets with the help of candlesticks, there are some important things to remember:
- Determine trends : Find consistent price movements such as upward or downward trends that may indicate a strong purchase or sales signal.
- Analysis of quantity : Increased amounts of candles usually mean more purchase activities while reducing signs of pressure.
- ** Observe support and resistance.
- Look for standards : The standard graphics such as triangles, wedges, as well as head and shoulder shoulders that can help identify possible negotiation options.
Types of candle holders
Many types of candle diagrams can be used to analyze cryptocurrency markets:
1.
2.
- Flee the candlesticks : Take into account candles that interrupt the previous resistance level or exceed the previous maximum.
Popular cryptocurrency -trade tools
Consider using the following popular cryptocurrency sales tools to improve the candle diagram analysis:
- TradingView : A robust platform offering advanced candle holders and technical indicators.
- Coinigy : A comprehensive device providing detailed market data, diagram functions and automation functions.
- Cipiptoslate : A professional -level platform for analyzing cryptocurrency markets with real -time updates.
Conclusion
Candle tables are an effective tool for merchants in the cryptocurrency market, allowing for rapid identification of trends, standards, and support and resistance. You can make a well -founded decisions when learning the use of candlesticks and taking advantage of popular negotiation tools and increasing the chances of success in the accelerated world of cryptocurrencies.
Tips and tricks
- Always use a 1 or 5 minute diagram to fix short -term price movements.
- Combine candlesticks with other technical analytical tools such as RSI (relative strength index) and Bollinger bands for wider market analysis.
- Keep up -to -date with market news and events that can affect the price of cryptocurrency.