Main to remember
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Bitcoin candlesticks are a popular tool among Bitcoin traders, as they are simple to use and offer an intuitive means of understanding the feeling and market trends.
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Bitcoin candlesticks are a rather old tool. Rice Trader Honma Munehisa invented them in Japan from the 18th century. They were initiated into Western financial markets in the late 1980s.
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They help you understand the bull and lowering models in technical analysis. This knowledge will allow you to start with Bitcoin Trading.
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They should not be your only tool to make informed decisions. Combine them with other Bitcoin technical indicators, such as Mas (Mobile Average) or RSI (relative resistance index).
If you are new in the Bitcoin trading (BTC), you can wonder when buying or selling. Chandelier graphics, such as bar or line graphics, have time on the horizontal axis, while price data appear on the vertical axis.
They provide a quick overview of price movements compared to other graphics. You can quickly see the highest and lowest prices of an asset in a specific time. It also shows the opening and fence prices.
Here are some Bitcoin trading tips to help you start. No necessary experience; This is your Crypto-Go-To Candyle graphic tutorial, perfectly suited to beginners.
Why analyze Bitcoin price graphics
Technical analysis is an essential and consolidated strategy for business markets. When Bitcoin (BTC) started recovering and prices have more fluctuated, cryptographic investors began to use trading strategies from traditional markets, such as candlesticks.
For the basics of Bitcoin’s technical analysis, platforms like tradingView offer many graphics and technical indicators. These tools are easy to use, even for beginners. TradingView Crypto Charts can be chandelier, bar or line graphics. Here is an overview of candlestick graphics to help you start with Bitcoin Trading.
Beginner’s guide on Bitcoin candle graphics
Chandelier graphics are an important step in technical analysis and the first step to understand Bitcoin graphics. They are an essential tool to quickly assess prices and short -term market movements.
They represent Bitcoin price trends on a table over a specific period, such as an hour, four hours or a day, to help traders make better decisions.
Why use candlesticks?
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They help traders to visualize price movements over time.
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They help identify the bullish, lower or consolidation feeling.
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They help identify models such as inversions or continuations to predict future price movements.
A candlestick represents four key prices:
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THE opening Price at the start of the period
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THE fence Price at the end of the period
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THE upper Price reached during the period
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THE the lowest Price reached during the period.
A candlestick is made up of a bodyThe large part between open and closed prices.
It is green when the price increases in a bull movement, and the fence price is higher than the opening price. It is red when the fence price is lower than the opening price, so the price is in a lower movement as it drops.
The body size shows high purchase and sale pressure when it is long. This indicates uncertainty when it is short.
A candlestick also has wicks or shadows. These are thin lines above and below the body that indicate the highest or lowest prices that the asset has struck during the relevant commercial setting.
Here is a useful example that can help you better understand it. Suppose you analyze the four -hour table using candlesticks, and the Bitcoin opening price is $ 90,000. The fence price is $ 93,500, with a summit of $ 95,000 and a hollow of $ 88,700.
In this case, the candlestick will appear as a green body from $ 90,000 to $ 93,500. An upper wick reaching $ 95,000 and a lower wick plunges $ 88,700.
Advantages of the Bitcoin candlestick table
Bitcoin candle graphics offer several advantages, including:
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Chandelier graphics offer you a quick view of the feeling of the market and the price movement. They show whether the market is positive or negative and how strong this feeling is.
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You can choose different deadlines depending on your trading style, whether you are a day trader, a swing trader or a long -term investor.
For example, one minute graphic works well for scalping, while the daily graph is better for long -term investors.
As the cryptographic markets are open 24 hours a day, the open and ended prices reflect the start and the end of the deadline chosen.
Introduction to advanced cryptographic cartography techniques to exchange BTC
Candlesticks are a great way to start exchanging bitcoin. They give you a quick look at market trends and help predict price movements. Once you know the basic graphics and skills, you can explore advanced techniques. For example, the use of moving averages can help you make better investment decisions.
Here are some of the best tools that Bitcoin traders use to take advantage of the technical, volume and psychology of the market. These strategies give merchants an advantage in the constantly evolving cryptography market.
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Fibonacci’s retrace is a technical analysis tool used to identify potential support and resistance levels, as well as price objectives.
To use this method, draw lines connecting a major high and low to the graph. Then calculate the retrace levels using fibonacci reports like 23.6%, 38.2%, 50%and 61.8%. You can use Fibonacci’s retrace for confirmation when associated with trend lines or mobile averages.
2. Volume profile
The volume profile is another technical analysis tool. It displays a volume of trading for the price instead of time. Knowing where trading occurs the most helps merchants to spot key price levels. These levels often create solid support and resistance areas.
3. Theory of Elliot waves
Elliott waves theory is a model for predicting price movements based on market psychology and wave models. According to theory, the market moves in the trends of five waves, followed by three waves of correction, each wave reflecting the feeling of traffic.
4. Other indicators
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THE Relative force index (RSI) is one of the most common cartography indicators. It measures the strength of price movements up and down of the bitcoin over time.
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THE Simple mobile average (SMA) Indicates the average price of an asset over time, which can help you understand the global movement of bitcoin prices.
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THE Exponential mobile average (EMA) is a better alternative to SMA to identify short -term trends. Like SMA, EMA shows you the average price of an asset over time, but EMA is more focused on the last days.
Caution! Reading Bitcoin candlesticks or any other graphic is an excellent first step towards understanding market behavior, but do not forget that the graphics do not guarantee the results. Always combine technical information with risk management and never exchange more than you can afford.
This article does not contain investment advice or recommendations. Each investment and negotiation movement involves risks and readers should conduct their own research when they make a decision.
