#bitcoin Understanding Candles - How to Increase Your Trading Accuracy - A Practical Tutorial
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Day trading is a way to invest in cryptocurrencies where the trader buys and sells cryptocurrencies on the same day without leaving any positions open at the end of the day. Hence, intraday traders attempt to either buy a cryptocurrency at a low price and sell it at a higher price, or short sell a cryptocurrency at a high price and buy it at a lower price on the same day. This requires a good understanding of the market and relevant information that can help them make the right decisions. In the cryptocurrency market, the price of a cryptocurrency is determined by demand and supply among other factors.
Tools like candlestick chart patterns provide great help to traders. We will talk about Japanese candlestick charts and provide steps to help you read them.
What are candlestick charts/charts?
Candlesticks are a visual representation of the magnitude of price fluctuations. Traders use these charts to identify patterns and measure near-term price direction in the cryptocurrency market.
Candlestick chart formation
This is how the candlestick chart pattern looks like: $BTC
