** Understanding of cryptocurrency: Beginner
Cryptocurrency, digital or virtual currency, which uses security cryptography and is decentralized and does not control any government or financial institution, has become popular in recent years. The growth of cryptocurrencies has led to a major growth in investment opportunities, but it is also at its risk. One of the most effective ways to analyze the price of cryptocurrencies is to use models of candlesticks.
What are the candlestick models?
Chandelier graphics are a type of financial table used for technical analysis in order to express market changes over time. They consist of a series of candles that show price changes on an exchange or trading platform. Each candle has been means for some time known as a band and it has several components:
* Body : The corps of candles is generally most of the candle and is the highest price at the time.
* Dagtis : The wicks are thin lines on both sides of the body, reflecting the opening and fence prices. They can mean instability or trading activities on the market.
* Open / Close : These values indicate the cost of opening and closing accordingly.
As the candlestick models are linked to the action of the cryptocurrency price
Cryptocurrencies have a unique price change due to their decentralized nature and high liquidity. This leads to significant price fluctuations. By analyzing the candlestick models, traders can determine possible purchase or sale signals depending on the form and behavior of these candles.
Here are some of the key aspects to consider when the candlestick models are used to analyze the price of cryptocurrency:
* Candlestick forms : Different forms can mean different market conditions such as a hammer (highly low, after which is highly high), indicating support or resistance. The shooting star (moving without real support) could point out the increase.
* Daga Behavior
: The direction of the wicks can also indicate potential trends or suites. For example, if one side of the candle has a long wick and the opposite side is a short side, this can be a sign from the opposite of a bear.
* Open / narrow differences : if the difference between open prices and closing prices is significant, it can be a high mood indicator.
Tools for analyzing the candlestick model
Although trading strategies can be applied using candlestick models, there are different tools to help analyze. Several popular options are:
* Graphic platforms : websites such as tradingView or Investia offer many graphic tools and technical indicators that can be used to analyze candlestick models.
* Mobile programs : programs such as Cryptosis or Cingocko provide real data and warnings to the cryptocurrency markets, which facilitates remaining in the latest market conditions.
* Mediation platforms : Many online intermediaries offer trading services for cryptocurrencies that can be used in conjunction with the analysis of candlesticks.
Conclusion
The analysis of pricing actions using models of candlesticks is a powerful tool for merchants. By understanding the forms and behaviors of these graphics, traders can determine possible purchase or sale signals depending on market conditions. Although there are various tools in the analysis process, it must be remembered that no graphic can guarantee success. The combination of technical indicators and basic analysis is often more effective.