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.

What's a Resistance level?
In crypto trading, a **resistance level** is a price point where an asset (like Bitcoin or Ethereum) tends to face selling pressure, causing the price to struggle to rise above it. It acts like a "ceiling" where traders often sell or take profits, halting upward momentum. This happens because many traders set sell orders at these levels, or the price is perceived as overvalued.
 Key Points:
- Identified on Charts**: Resistance levels are often spotted using historical price data, where the price repeatedly fails to break through a certain level.
- Psychological Barriers**: Round numbers (e.g., $10,000 for Bitcoin) often act as resistance due to human behavior.
- Role in Trading**: Traders use resistance levels to set sell targets or predict potential reversals. A breakout above resistance with strong volume can signal a bullish trend.
- Technical Indicators**: Tools like moving averages, Fibonacci retracement, or trendlines help identify resistance zones.

Aspiring famer| An environmentalist - Advocate of forestry and wildlife| part time trader

It’s like a ceiling in the market — a price point where assets struggle to break above because sellers step in heavy. 📉


Knowing resistance levels = trading with vision. 📊💪