Let's talk about candlesticks
Candlesticks in crypto trading are visual representations of price movements for a specific cryptocurrency over a set time period (e.g., 1 minute, 1 hour, 1 day). They’re used in technical analysis to help traders understand market trends, price action, and potential reversals or continuations. Each candlestick provides four key pieces of information: the opening price, closing price, high, and low within the chosen timeframe.
Anatomy of a Candlestick
Body: The thick part of the candlestick, showing the difference between the opening and closing prices.
- Green (or white) candlestick: The price closed higher than it opened (bullish).
- Red (or black) candlestick: The price closed lower than it opened (bearish).
Wicks (or shadows): Thin lines above and below the body, representing the highest and lowest prices during the period.
Open: The price at the start of the time period.
Close: The price at the end of the time period.
High: The highest price reached during the period.
Low: The lowest price reached during the period. 5 replies
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