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Today the market took a wild turn. It’s important to stick stay calm, market always recovers ;)
When do you think the next $BTC move will be?
#BTCNextMove
When do you think the next $BTC move will be?
#BTCNextMove
WHAT IS EXACTLY BITCOIN MARKET DOMINANCE❓
🔺 You are just starting your crypto journey and I bet you hear that word thrown around lately on every post you see.. but what exactly does it mean?
Since BTC was the first crypto currency, it has remained the largest by market cap. Therefore Bitcoin Dominance is simply a metric used to measure the relative market share/capitalisation % compared to the rest of the cryptocurrency sector.
🔺 Why in the world would I care about BTC dominance? What makes it so important?
Good question. There are many reasons why this is an important metric for investors to take into consideration. (I’ll make another post later to not bore you guys with long boring posts and keep it short and simple.) But the main reason you hear that word thrown around lately is: Bitcoin dominance can be used to understand market sentiment. When dominance is high, it generally indicates that investors are more confident in Bitcoin compared to other cryptocurrencies as it might seem as a “safer” option because of its larger size and more established reputation. On the other hand, when it’s low could mean that investors are more willing to take risks on other cryptocurrencies for potential higher returns.
🔺 Finally you might ask… how do I know what is the current BTC dominance? Where do I find it?
You can find it by opening trading information of BTC on your Binance App. And that is also true not only for Bitcoin but also for any other cryptocurrency listed on Binance.
#MarketNewHype #bitcoindominance $BTC
🔺 You are just starting your crypto journey and I bet you hear that word thrown around lately on every post you see.. but what exactly does it mean?
Since BTC was the first crypto currency, it has remained the largest by market cap. Therefore Bitcoin Dominance is simply a metric used to measure the relative market share/capitalisation % compared to the rest of the cryptocurrency sector.
🔺 Why in the world would I care about BTC dominance? What makes it so important?
Good question. There are many reasons why this is an important metric for investors to take into consideration. (I’ll make another post later to not bore you guys with long boring posts and keep it short and simple.) But the main reason you hear that word thrown around lately is: Bitcoin dominance can be used to understand market sentiment. When dominance is high, it generally indicates that investors are more confident in Bitcoin compared to other cryptocurrencies as it might seem as a “safer” option because of its larger size and more established reputation. On the other hand, when it’s low could mean that investors are more willing to take risks on other cryptocurrencies for potential higher returns.
🔺 Finally you might ask… how do I know what is the current BTC dominance? Where do I find it?
You can find it by opening trading information of BTC on your Binance App. And that is also true not only for Bitcoin but also for any other cryptocurrency listed on Binance.
#MarketNewHype #bitcoindominance $BTC
Happy Saturday square fam !!!
Feeling bullish, Bitcoin is back on track and maintaining support above 100k 😝
(Soon I’ll be making new posts on essential trading terms that can be useful for new traders)
#BitcoinKeyZone
$BTC
Feeling bullish, Bitcoin is back on track and maintaining support above 100k 😝
(Soon I’ll be making new posts on essential trading terms that can be useful for new traders)
#BitcoinKeyZone
$BTC
✨Hello Square ✨
Been quietly lurking around here for a while but too shy to say hi and connect with the community.
It’s nice to meet you all and be more active around here ! 🔥
#BinanceSquareFamily #Uptober
$BTC $SOL $PEPE
Been quietly lurking around here for a while but too shy to say hi and connect with the community.
It’s nice to meet you all and be more active around here ! 🔥
#BinanceSquareFamily #Uptober
$BTC $SOL $PEPE
.
Crypto Insiders
--
Want to know how understand Candles? Read this article - Practical Guide
Intraday trading is a method of investing in cryptocurrencies where the trader buys and sells cryptocurrencies on the same day without any open positions left by the end of the day. Hence, intraday traders try to either purchase a cryptocurrency at a low price and sell it higher or short-sell a cryptocurrency at a high price and buy it lower within 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 its demand and supply among other factors.
Tools such as candlestick chart patterns offer great help to traders. We will talk about these Candlestick Charts and offer steps to help you read them.
What are Candlestick Graphs/Charts?
Candlesticks are a visual representation of the size of price fluctuations. Traders use these charts to identify patterns and gauge the near-term direction of price in the cryptocurrency market.
Composition of a Candlestick Chart
This is how a candlestick chart pattern looks like:
As you can see, there are several horizontal bars or candles that form this chart. Each candle has three parts:
The BodyUpper ShadowLower Shadow
Also, the body is colored either Red or Green. Each candle is a representation of a time period and the data corresponds to the trades executed during that period.
A candle has four points of data:
How to Analyze Candlestick Chart for Cryptocurrencies
The body of the candle in a candlestick chart represents the opening and closing price of the trading done during the period for a particular cryptocurrency. Understanding this is crucial for candlestick trading. Traders can quickly see the price range of the cryptocurrency for the said period by looking at the chart. Moreover, the color of the body indicates whether the price is rising or falling. For instance, if a candlestick chart for a month with each candle representing a day has more consecutive red candles, then traders know that the cryptocurrency's price is falling.
Vertical lines called wicks or shadows above and below the body show the highs and lows of the traded price of the cryptocurrency. Traders can use this information to analyze the sentiment of the market towards the cryptocurrency.
Candlestick Chart Patterns
Candlestick charts are an excellent way of understanding investor sentiment and the relationship between demand and supply, bears and bulls, greed and fear, etc., in the cryptocurrency market. Traders must remember that while an individual candle provides sufficient information, patterns can be determined only by comparing one candle with its preceding and next candles. To benefit from them, it is important that traders understand patterns in candlestick charts.
Let's divide the patterns into two sections:
Bullish PatternsBearish Patterns
Analyzing these patterns can help traders make informed decisions about buying or selling cryptocurrencies.
Bullish Patterns
Hammer pattern
This is a candle with a short body and a long lower wick. It is usually located at the bottom of a downward trend. It indicates that despite selling pressures, a strong buying surge pushed the prices up. If the body is green, it indicates a stronger bull market than a red body.
Inverse Hammer pattern
This is a candle with a short body and a long upper wick. It is usually located at the bottom of a downward trend too. It indicates buying pressure followed by selling pressure. It also indicates that buyers will soon have control.
Bullish Engulfing pattern
This is a pattern of two candlesticks where the first candle is a short red one engulfed by a large green candle. It indicates a bullish market that pushes the price up despite opening lower than the previous day.
Piercing Line pattern
This is a two-candle pattern having a long red candle followed by a long green candle. Also, the closing price of the second candle must be more than half-way up the body of the first candle. This indicates strong buying pressure.
Morning Star pattern
This is a three-candle pattern that has one candle with a short body between one long red and a long green candle. There is usually no overlap between the short and the long candles. This is an indication of the reduction of the selling pressure and the onset of a bull market.
Three White Soldiers pattern
This is a three-candle pattern that has three green candles with small wicks. These candles open and close higher than the previous day. After a downtrend, this is a strong indication of an upcoming bull trend.
Bearish Patterns
Hanging Man pattern
This is a candle with a short body and a long lower wick. It is usually located at the top of an upward trend. It indicates that the selling pressures were stronger than the buying thrust. It also indicates that bears are gaining control of the market.
Shooting Star pattern
This is a candle with a short body and a long upper wick. It is usually located at the top of an upward trend too. Usually, the market opens higher than the previous day and rallies a bit before crashing like a shooting star. It indicates selling pressure taking over the market.
Bearish Engulfing pattern
In candlestick chart analysis, this is a pattern of two candlesticks where the first candle is a short green one engulfed by a large red candle. It usually occurs at the top of an upward trend. It indicates a slowdown in the market rise and an upcoming downtrend. If the red candle is lower, the downtrend is usually more significant.
Evening Star pattern
This is a three-candle pattern that has one candle with a short body between one long red and a long green candle. There is usually no overlap between the short and the long candles. This is an indication of the reversal of an upward trend. This is more significant if the third candle overcomes the gains of the first candle.
Three Black Crows pattern
This is a three-candle pattern that has three consecutive red candles with short wicks. These candles open and close lower than the previous day. After an upward trend, this is a strong indication of an upcoming bear market.
Chart patterns can be used to understand trends and sentiment of the cryptocurrency markets. There are several other patterns to explore in order to gain a deeper understanding of market movements. Use this as a starting point and continue to learn and refine your analysis skills.
Happy trades and successful investments!💪👊
@Crypto Insiders
#candles #BTC $BTC
$ETH
$BNB
Tools such as candlestick chart patterns offer great help to traders. We will talk about these Candlestick Charts and offer steps to help you read them.
What are Candlestick Graphs/Charts?
Candlesticks are a visual representation of the size of price fluctuations. Traders use these charts to identify patterns and gauge the near-term direction of price in the cryptocurrency market.
Composition of a Candlestick Chart
This is how a candlestick chart pattern looks like:
As you can see, there are several horizontal bars or candles that form this chart. Each candle has three parts:
The BodyUpper ShadowLower Shadow
Also, the body is colored either Red or Green. Each candle is a representation of a time period and the data corresponds to the trades executed during that period.
A candle has four points of data:
How to Analyze Candlestick Chart for Cryptocurrencies
The body of the candle in a candlestick chart represents the opening and closing price of the trading done during the period for a particular cryptocurrency. Understanding this is crucial for candlestick trading. Traders can quickly see the price range of the cryptocurrency for the said period by looking at the chart. Moreover, the color of the body indicates whether the price is rising or falling. For instance, if a candlestick chart for a month with each candle representing a day has more consecutive red candles, then traders know that the cryptocurrency's price is falling.
Vertical lines called wicks or shadows above and below the body show the highs and lows of the traded price of the cryptocurrency. Traders can use this information to analyze the sentiment of the market towards the cryptocurrency.
Candlestick Chart Patterns
Candlestick charts are an excellent way of understanding investor sentiment and the relationship between demand and supply, bears and bulls, greed and fear, etc., in the cryptocurrency market. Traders must remember that while an individual candle provides sufficient information, patterns can be determined only by comparing one candle with its preceding and next candles. To benefit from them, it is important that traders understand patterns in candlestick charts.
Let's divide the patterns into two sections:
Bullish PatternsBearish Patterns
Analyzing these patterns can help traders make informed decisions about buying or selling cryptocurrencies.
Bullish Patterns
Hammer pattern
This is a candle with a short body and a long lower wick. It is usually located at the bottom of a downward trend. It indicates that despite selling pressures, a strong buying surge pushed the prices up. If the body is green, it indicates a stronger bull market than a red body.
Inverse Hammer pattern
This is a candle with a short body and a long upper wick. It is usually located at the bottom of a downward trend too. It indicates buying pressure followed by selling pressure. It also indicates that buyers will soon have control.
Bullish Engulfing pattern
This is a pattern of two candlesticks where the first candle is a short red one engulfed by a large green candle. It indicates a bullish market that pushes the price up despite opening lower than the previous day.
Piercing Line pattern
This is a two-candle pattern having a long red candle followed by a long green candle. Also, the closing price of the second candle must be more than half-way up the body of the first candle. This indicates strong buying pressure.
Morning Star pattern
This is a three-candle pattern that has one candle with a short body between one long red and a long green candle. There is usually no overlap between the short and the long candles. This is an indication of the reduction of the selling pressure and the onset of a bull market.
Three White Soldiers pattern
This is a three-candle pattern that has three green candles with small wicks. These candles open and close higher than the previous day. After a downtrend, this is a strong indication of an upcoming bull trend.
Bearish Patterns
Hanging Man pattern
This is a candle with a short body and a long lower wick. It is usually located at the top of an upward trend. It indicates that the selling pressures were stronger than the buying thrust. It also indicates that bears are gaining control of the market.
Shooting Star pattern
This is a candle with a short body and a long upper wick. It is usually located at the top of an upward trend too. Usually, the market opens higher than the previous day and rallies a bit before crashing like a shooting star. It indicates selling pressure taking over the market.
Bearish Engulfing pattern
In candlestick chart analysis, this is a pattern of two candlesticks where the first candle is a short green one engulfed by a large red candle. It usually occurs at the top of an upward trend. It indicates a slowdown in the market rise and an upcoming downtrend. If the red candle is lower, the downtrend is usually more significant.
Evening Star pattern
This is a three-candle pattern that has one candle with a short body between one long red and a long green candle. There is usually no overlap between the short and the long candles. This is an indication of the reversal of an upward trend. This is more significant if the third candle overcomes the gains of the first candle.
Three Black Crows pattern
This is a three-candle pattern that has three consecutive red candles with short wicks. These candles open and close lower than the previous day. After an upward trend, this is a strong indication of an upcoming bear market.
Chart patterns can be used to understand trends and sentiment of the cryptocurrency markets. There are several other patterns to explore in order to gain a deeper understanding of market movements. Use this as a starting point and continue to learn and refine your analysis skills.
Happy trades and successful investments!💪👊
@Crypto Insiders
#candles #BTC $BTC
$ETH
$BNB
.
12 candle patterns that made made me a millionare from crypto
Trading in the volatile world of cryptocurrency can be both thrilling and daunting. One of the keys to success lies in understanding and mastering candle patterns, which are essential tools for predicting market movements.
Hey there its your mentor doc messi and i Teach you things which people charge hundred of dollar for so dont forget to vote for us Click here to vote and join us. it will help us bring amazing content for you daily.
. Here’s how twelve specific candle patterns played a pivotal role in my journey to becoming a millionaire.
The Bullish Engulfing Pattern
The bullish engulfing pattern is a powerful reversal signal, indicating that the bulls have taken control after a downtrend. Whenever I saw this pattern after a series of bearish candles, it often signaled the start of an upward trend, allowing me to enter trades with confidence.
The Bearish Engulfing Pattern
Just as the bullish engulfing pattern signals a potential rise, the bearish engulfing pattern indicates a downturn. By recognizing this pattern at the peak of an uptrend, I could exit my positions before the market turned against me, preserving my profits.
The Doji
The doji is a neutral pattern that signals indecision in the market. While it doesn’t provide a clear direction, it has been invaluable in helping me stay cautious and avoid trades when the market was uncertain.
The Hammer
The hammer pattern appears after a downtrend and suggests a potential reversal. It’s characterized by a small body and a long lower shadow, indicating that sellers pushed the price down, but buyers stepped in to drive it back up. This pattern has been a reliable indicator for me to buy into a recovering market.
The Hanging Man
The hanging man is essentially the hammer’s bearish counterpart. Appearing after an uptrend, it signals that sellers are starting to gain control. Recognizing this pattern allowed me to sell at the right time, often just before the market dipped.
The Morning Star
The morning star is a bullish pattern that signals a reversal after a downtrend. Consisting of three candles, it starts with a long bearish candle, followed by a small-bodied candle (which can be bullish or bearish), and ends with a long bullish candle. This pattern has consistently been a signal for me to enter long positions.
The Evening Star
The evening star is the bearish version of the morning star, signaling a reversal after an uptrend. This pattern has saved me from significant losses by indicating when it was time to exit before a downward trend began.
The Shooting Star
The shooting star is a bearish pattern that appears at the top of an uptrend. It has a small body, with a long upper shadow and little to no lower shadow, suggesting that buyers tried to push the price higher but failed. This pattern has been a reliable sell signal, helping me lock in profits before the market reversed.
The Inverted Hammer
The inverted hammer is a bullish pattern that signals a potential reversal after a downtrend. It looks like an upside-down hammer and indicates that buyers are starting to gain strength. This pattern has often been a cue for me to start buying as the market begins to recover.
The Three White Soldiers
This is a bullish pattern consisting of three consecutive long bullish candles. Each candle opens within the previous candle’s body and closes near its high. This pattern has been a strong indicator for me to hold onto my positions as the market continues its upward trajectory.
The Three Black Crows
The three black crows pattern is the bearish counterpart to the three white soldiers. It consists of three consecutive long bearish candles, signaling a potential reversal after an uptrend. Recognizing this pattern has helped me avoid holding onto assets that were about to lose value.
The Tweezer Tops and Bottoms
Tweezer patterns are reversal signals that consist of two candles with matching highs (tweezer tops) or lows (tweezer bottoms). These patterns have been incredibly useful in identifying potential market tops and bottoms, allowing me to time my entries and exits with precision.
Conclusion
Mastering these twelve candle patterns has been instrumental in my success as a crypto trader on Binance. Each pattern offers valuable insights into market sentiment and potential price movements. By learning to recognize these patterns and incorporating them into my trading strategy, I was able to make informed decisions that ultimately led to significant financial gains. Trading is an art as much as it is a science, and understanding candle patterns is one of the most powerful tools any trader can have in their arsenal.
Hey there its your mentor doc messi and i Teach you things which people charge hundred of dollar for so dont forget to vote for us Click here to vote and join us it will help us bring amazing content for you daily.
Hey there its your mentor doc messi and i Teach you things which people charge hundred of dollar for so dont forget to vote for us Click here to vote and join us. it will help us bring amazing content for you daily.
. Here’s how twelve specific candle patterns played a pivotal role in my journey to becoming a millionaire.
The Bullish Engulfing Pattern
The bullish engulfing pattern is a powerful reversal signal, indicating that the bulls have taken control after a downtrend. Whenever I saw this pattern after a series of bearish candles, it often signaled the start of an upward trend, allowing me to enter trades with confidence.
The Bearish Engulfing Pattern
Just as the bullish engulfing pattern signals a potential rise, the bearish engulfing pattern indicates a downturn. By recognizing this pattern at the peak of an uptrend, I could exit my positions before the market turned against me, preserving my profits.
The Doji
The doji is a neutral pattern that signals indecision in the market. While it doesn’t provide a clear direction, it has been invaluable in helping me stay cautious and avoid trades when the market was uncertain.
The Hammer
The hammer pattern appears after a downtrend and suggests a potential reversal. It’s characterized by a small body and a long lower shadow, indicating that sellers pushed the price down, but buyers stepped in to drive it back up. This pattern has been a reliable indicator for me to buy into a recovering market.
The Hanging Man
The hanging man is essentially the hammer’s bearish counterpart. Appearing after an uptrend, it signals that sellers are starting to gain control. Recognizing this pattern allowed me to sell at the right time, often just before the market dipped.
The Morning Star
The morning star is a bullish pattern that signals a reversal after a downtrend. Consisting of three candles, it starts with a long bearish candle, followed by a small-bodied candle (which can be bullish or bearish), and ends with a long bullish candle. This pattern has consistently been a signal for me to enter long positions.
The Evening Star
The evening star is the bearish version of the morning star, signaling a reversal after an uptrend. This pattern has saved me from significant losses by indicating when it was time to exit before a downward trend began.
The Shooting Star
The shooting star is a bearish pattern that appears at the top of an uptrend. It has a small body, with a long upper shadow and little to no lower shadow, suggesting that buyers tried to push the price higher but failed. This pattern has been a reliable sell signal, helping me lock in profits before the market reversed.
The Inverted Hammer
The inverted hammer is a bullish pattern that signals a potential reversal after a downtrend. It looks like an upside-down hammer and indicates that buyers are starting to gain strength. This pattern has often been a cue for me to start buying as the market begins to recover.
The Three White Soldiers
This is a bullish pattern consisting of three consecutive long bullish candles. Each candle opens within the previous candle’s body and closes near its high. This pattern has been a strong indicator for me to hold onto my positions as the market continues its upward trajectory.
The Three Black Crows
The three black crows pattern is the bearish counterpart to the three white soldiers. It consists of three consecutive long bearish candles, signaling a potential reversal after an uptrend. Recognizing this pattern has helped me avoid holding onto assets that were about to lose value.
The Tweezer Tops and Bottoms
Tweezer patterns are reversal signals that consist of two candles with matching highs (tweezer tops) or lows (tweezer bottoms). These patterns have been incredibly useful in identifying potential market tops and bottoms, allowing me to time my entries and exits with precision.
Conclusion
Mastering these twelve candle patterns has been instrumental in my success as a crypto trader on Binance. Each pattern offers valuable insights into market sentiment and potential price movements. By learning to recognize these patterns and incorporating them into my trading strategy, I was able to make informed decisions that ultimately led to significant financial gains. Trading is an art as much as it is a science, and understanding candle patterns is one of the most powerful tools any trader can have in their arsenal.
Hey there its your mentor doc messi and i Teach you things which people charge hundred of dollar for so dont forget to vote for us Click here to vote and join us it will help us bring amazing content for you daily.
.
BullishBanter
--
⛔ A Foolproof Method for Speculating in Cryptocurrencies
⛔⛔⛔⛔⛔⛔⛔⛔⛔
Is there a way for ordinary people to speculate in cryptocurrencies successfully? Today, I'll share with you the simplest method for crypto trading that can help you "make money forever" and earn hundreds of thousands of yuan! I've been using this method myself, and it's both effective and stable, suitable for everyone.
Step 1: Add coins that have been on the gainers list within the last 11 days to your watchlist. However, exclude any coins that have declined for more than three days to avoid capital outflows.
Step 2: Open the K-line chart and focus only on coins with a monthly MACD golden cross.
Step 3: Look at the daily K-line chart and focus on the 60-day moving average. When the coin price pulls back near the 60-day moving average and a large-volume K-line appears, enter the market with a significant position.
Step 4: After entering the market, use the 60-day moving average as your benchmark. Follow these three detailed steps for selling:
1. When the price increase exceeds 30%, sell one-third of your holdings.
2. When the price increase exceeds 50%, sell another one-third.
3. If the coin price falls below the 60-day moving average, exit the market completely without hesitation. The key to success is execution—strictly adhering to this rule separates winners from losers.
The challenge in making money isn't the method itself but the discipline to execute it. If the coin price falls below the 60-day moving average, exit the market immediately without any second thoughts. This rule alone is what 90% of people fail to follow.
Everyone enters the cryptocurrency world with the same goal—to make money. If you're serious about trading, this method is for you. If you're just here for fun, this isn't the place for you.
#Write2Earn! #BinanceTurns7 #BinanceTournament #BullBanter #SOFR_Spike
⛔⛔⛔⛔⛔⛔⛔⛔⛔
Is there a way for ordinary people to speculate in cryptocurrencies successfully? Today, I'll share with you the simplest method for crypto trading that can help you "make money forever" and earn hundreds of thousands of yuan! I've been using this method myself, and it's both effective and stable, suitable for everyone.
Step 1: Add coins that have been on the gainers list within the last 11 days to your watchlist. However, exclude any coins that have declined for more than three days to avoid capital outflows.
Step 2: Open the K-line chart and focus only on coins with a monthly MACD golden cross.
Step 3: Look at the daily K-line chart and focus on the 60-day moving average. When the coin price pulls back near the 60-day moving average and a large-volume K-line appears, enter the market with a significant position.
Step 4: After entering the market, use the 60-day moving average as your benchmark. Follow these three detailed steps for selling:
1. When the price increase exceeds 30%, sell one-third of your holdings.
2. When the price increase exceeds 50%, sell another one-third.
3. If the coin price falls below the 60-day moving average, exit the market completely without hesitation. The key to success is execution—strictly adhering to this rule separates winners from losers.
The challenge in making money isn't the method itself but the discipline to execute it. If the coin price falls below the 60-day moving average, exit the market immediately without any second thoughts. This rule alone is what 90% of people fail to follow.
Everyone enters the cryptocurrency world with the same goal—to make money. If you're serious about trading, this method is for you. If you're just here for fun, this isn't the place for you.
#Write2Earn! #BinanceTurns7 #BinanceTournament #BullBanter #SOFR_Spike
💕
Crypto Insiders
--
Want to know how understand Candles? Read this article - Practical Guide
Intraday trading is a method of investing in cryptocurrencies where the trader buys and sells cryptocurrencies on the same day without any open positions left by the end of the day. Hence, intraday traders try to either purchase a cryptocurrency at a low price and sell it higher or short-sell a cryptocurrency at a high price and buy it lower within 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 its demand and supply among other factors.
Tools such as candlestick chart patterns offer great help to traders. We will talk about these Candlestick Charts and offer steps to help you read them.
What are Candlestick Graphs/Charts?
Candlesticks are a visual representation of the size of price fluctuations. Traders use these charts to identify patterns and gauge the near-term direction of price in the cryptocurrency market.
Composition of a Candlestick Chart
This is how a candlestick chart pattern looks like:
As you can see, there are several horizontal bars or candles that form this chart. Each candle has three parts:
The BodyUpper ShadowLower Shadow
Also, the body is colored either Red or Green. Each candle is a representation of a time period and the data corresponds to the trades executed during that period.
A candle has four points of data:
How to Analyze Candlestick Chart for Cryptocurrencies
The body of the candle in a candlestick chart represents the opening and closing price of the trading done during the period for a particular cryptocurrency. Understanding this is crucial for candlestick trading. Traders can quickly see the price range of the cryptocurrency for the said period by looking at the chart. Moreover, the color of the body indicates whether the price is rising or falling. For instance, if a candlestick chart for a month with each candle representing a day has more consecutive red candles, then traders know that the cryptocurrency's price is falling.
Vertical lines called wicks or shadows above and below the body show the highs and lows of the traded price of the cryptocurrency. Traders can use this information to analyze the sentiment of the market towards the cryptocurrency.
Candlestick Chart Patterns
Candlestick charts are an excellent way of understanding investor sentiment and the relationship between demand and supply, bears and bulls, greed and fear, etc., in the cryptocurrency market. Traders must remember that while an individual candle provides sufficient information, patterns can be determined only by comparing one candle with its preceding and next candles. To benefit from them, it is important that traders understand patterns in candlestick charts.
Let's divide the patterns into two sections:
Bullish PatternsBearish Patterns
Analyzing these patterns can help traders make informed decisions about buying or selling cryptocurrencies.
Bullish Patterns
Hammer pattern
This is a candle with a short body and a long lower wick. It is usually located at the bottom of a downward trend. It indicates that despite selling pressures, a strong buying surge pushed the prices up. If the body is green, it indicates a stronger bull market than a red body.
Inverse Hammer pattern
This is a candle with a short body and a long upper wick. It is usually located at the bottom of a downward trend too. It indicates buying pressure followed by selling pressure. It also indicates that buyers will soon have control.
Bullish Engulfing pattern
This is a pattern of two candlesticks where the first candle is a short red one engulfed by a large green candle. It indicates a bullish market that pushes the price up despite opening lower than the previous day.
Piercing Line pattern
This is a two-candle pattern having a long red candle followed by a long green candle. Also, the closing price of the second candle must be more than half-way up the body of the first candle. This indicates strong buying pressure.
Morning Star pattern
This is a three-candle pattern that has one candle with a short body between one long red and a long green candle. There is usually no overlap between the short and the long candles. This is an indication of the reduction of the selling pressure and the onset of a bull market.
Three White Soldiers pattern
This is a three-candle pattern that has three green candles with small wicks. These candles open and close higher than the previous day. After a downtrend, this is a strong indication of an upcoming bull trend.
Bearish Patterns
Hanging Man pattern
This is a candle with a short body and a long lower wick. It is usually located at the top of an upward trend. It indicates that the selling pressures were stronger than the buying thrust. It also indicates that bears are gaining control of the market.
Shooting Star pattern
This is a candle with a short body and a long upper wick. It is usually located at the top of an upward trend too. Usually, the market opens higher than the previous day and rallies a bit before crashing like a shooting star. It indicates selling pressure taking over the market.
Bearish Engulfing pattern
In candlestick chart analysis, this is a pattern of two candlesticks where the first candle is a short green one engulfed by a large red candle. It usually occurs at the top of an upward trend. It indicates a slowdown in the market rise and an upcoming downtrend. If the red candle is lower, the downtrend is usually more significant.
Evening Star pattern
This is a three-candle pattern that has one candle with a short body between one long red and a long green candle. There is usually no overlap between the short and the long candles. This is an indication of the reversal of an upward trend. This is more significant if the third candle overcomes the gains of the first candle.
Three Black Crows pattern
This is a three-candle pattern that has three consecutive red candles with short wicks. These candles open and close lower than the previous day. After an upward trend, this is a strong indication of an upcoming bear market.
Chart patterns can be used to understand trends and sentiment of the cryptocurrency markets. There are several other patterns to explore in order to gain a deeper understanding of market movements. Use this as a starting point and continue to learn and refine your analysis skills.
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Tools such as candlestick chart patterns offer great help to traders. We will talk about these Candlestick Charts and offer steps to help you read them.
What are Candlestick Graphs/Charts?
Candlesticks are a visual representation of the size of price fluctuations. Traders use these charts to identify patterns and gauge the near-term direction of price in the cryptocurrency market.
Composition of a Candlestick Chart
This is how a candlestick chart pattern looks like:
As you can see, there are several horizontal bars or candles that form this chart. Each candle has three parts:
The BodyUpper ShadowLower Shadow
Also, the body is colored either Red or Green. Each candle is a representation of a time period and the data corresponds to the trades executed during that period.
A candle has four points of data:
How to Analyze Candlestick Chart for Cryptocurrencies
The body of the candle in a candlestick chart represents the opening and closing price of the trading done during the period for a particular cryptocurrency. Understanding this is crucial for candlestick trading. Traders can quickly see the price range of the cryptocurrency for the said period by looking at the chart. Moreover, the color of the body indicates whether the price is rising or falling. For instance, if a candlestick chart for a month with each candle representing a day has more consecutive red candles, then traders know that the cryptocurrency's price is falling.
Vertical lines called wicks or shadows above and below the body show the highs and lows of the traded price of the cryptocurrency. Traders can use this information to analyze the sentiment of the market towards the cryptocurrency.
Candlestick Chart Patterns
Candlestick charts are an excellent way of understanding investor sentiment and the relationship between demand and supply, bears and bulls, greed and fear, etc., in the cryptocurrency market. Traders must remember that while an individual candle provides sufficient information, patterns can be determined only by comparing one candle with its preceding and next candles. To benefit from them, it is important that traders understand patterns in candlestick charts.
Let's divide the patterns into two sections:
Bullish PatternsBearish Patterns
Analyzing these patterns can help traders make informed decisions about buying or selling cryptocurrencies.
Bullish Patterns
Hammer pattern
This is a candle with a short body and a long lower wick. It is usually located at the bottom of a downward trend. It indicates that despite selling pressures, a strong buying surge pushed the prices up. If the body is green, it indicates a stronger bull market than a red body.
Inverse Hammer pattern
This is a candle with a short body and a long upper wick. It is usually located at the bottom of a downward trend too. It indicates buying pressure followed by selling pressure. It also indicates that buyers will soon have control.
Bullish Engulfing pattern
This is a pattern of two candlesticks where the first candle is a short red one engulfed by a large green candle. It indicates a bullish market that pushes the price up despite opening lower than the previous day.
Piercing Line pattern
This is a two-candle pattern having a long red candle followed by a long green candle. Also, the closing price of the second candle must be more than half-way up the body of the first candle. This indicates strong buying pressure.
Morning Star pattern
This is a three-candle pattern that has one candle with a short body between one long red and a long green candle. There is usually no overlap between the short and the long candles. This is an indication of the reduction of the selling pressure and the onset of a bull market.
Three White Soldiers pattern
This is a three-candle pattern that has three green candles with small wicks. These candles open and close higher than the previous day. After a downtrend, this is a strong indication of an upcoming bull trend.
Bearish Patterns
Hanging Man pattern
This is a candle with a short body and a long lower wick. It is usually located at the top of an upward trend. It indicates that the selling pressures were stronger than the buying thrust. It also indicates that bears are gaining control of the market.
Shooting Star pattern
This is a candle with a short body and a long upper wick. It is usually located at the top of an upward trend too. Usually, the market opens higher than the previous day and rallies a bit before crashing like a shooting star. It indicates selling pressure taking over the market.
Bearish Engulfing pattern
In candlestick chart analysis, this is a pattern of two candlesticks where the first candle is a short green one engulfed by a large red candle. It usually occurs at the top of an upward trend. It indicates a slowdown in the market rise and an upcoming downtrend. If the red candle is lower, the downtrend is usually more significant.
Evening Star pattern
This is a three-candle pattern that has one candle with a short body between one long red and a long green candle. There is usually no overlap between the short and the long candles. This is an indication of the reversal of an upward trend. This is more significant if the third candle overcomes the gains of the first candle.
Three Black Crows pattern
This is a three-candle pattern that has three consecutive red candles with short wicks. These candles open and close lower than the previous day. After an upward trend, this is a strong indication of an upcoming bear market.
Chart patterns can be used to understand trends and sentiment of the cryptocurrency markets. There are several other patterns to explore in order to gain a deeper understanding of market movements. Use this as a starting point and continue to learn and refine your analysis skills.
#Binance #BTC #strategy
Happy trades and successful investments!💪👊
@Crypto Insiders @Insiders
$BTC $BNB $SOL