Pricing activity analysis using candlestick patterns cryptocurrency
The cryptocurrency world is known for its volatility and unpredictability. When prices fluctuate rapidly, it can be difficult to make reasonable investment decisions. One effective way to analyze prices in cryptocurrencies is candlestick models. In this article, we will study the various types of candlesticks used to perform cryptocurrency analysis, their properties and how they can be used in practice.
What are the candlesticks?
Candlestick models are graphic price images that transmit market conditions. They consist of a series of horizontal lines (wicks) in the open chart, which reflects the high and low safety prices. The wick is connected to the tail to form a « candle » shape.
Candestick types cryptocurrency
Here are some of the conventional candlestick models used for cryptocurrency analysis:
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Harami Model : Harami model is described in two rows that come with the greatest or love in the same candle. The first row (upper wick) stretches above the second line (lower wick), and the second line (middle wick) reaches below it.
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shooting star model : Shooting Star model is labeled with a series of small and lower jaws in the same candle.
- Impulsive candlestick models :
* The growing wedge : The upward trend line (white), the upper wick, the lower wick and then the green rectangle on the back.
* Required triangle
: The downturn is listed in the trend line (red), the lower wick, a longer wick and then the blue triangle on the back.
- Candlestick Models :
* Longer lower pierced line : Long lower piercing line is formed when the carpet begins to disappear, pointing to the potential of a new trend.
* Short upper piercing line : A short upper pierced line indicates that the growth is approaching its end.
The features of each model
Candestick models have several features that can be analyzed:
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Confirmation : The model must confirm the current market mood, which must be considered appropriate.
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Template Position : The time when the model forms a model, such as switching or taking a trend, affects its importance.
How to apply candlestick patterns
To effectively use candlestick patterns for cryptocurrency analysis:
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Conclusion
Candlestick models offer a valuable tool to analyze the price of cryptocurrencies. Understanding the characteristics and use of different models, traders and investors can make more sensible decisions on the purchase and sale of securities. Although no model is flawless, coordination of candlestick models with other technical and key indicators can help develop a reliable trading strategy.