Basics of cryptocurrency and technical analysis: Understanding candleboard diagrams
Cryptocurrency, a digital or virtual currency that uses encryption for safe financial stores has gained popularity in recent years. However, it is not just about the value of cryptocurrencies; Understanding the underlying dynamic is crucial to making information -based investment decisions.
In this article, we immerse the cryptocurrency and technical analysis on a certain accent in chandelier graphics. You will learn to identify trends, models and other important indicators that can help you navigate in the constantly developing landscape of the encryption market.
What are the cryptocurrencies?
Cryptocurrencies are decentralized digital currencies that use cryptography for safe financial activities. They are based on blockchain technology, which allows many games to record events without the need for brokers, such as banks. The most famous cryptocurrency is Bitcoin (BTC), but other significant players include Ethereum (ETH), Litecoin (LTC) and Monero (XMR).
Why use technical analysis?
Technical analysis is the method to analyze graphics and models in the financial markets, including cryptocurrencies. By identifying trends, support and opposition levels and other indicators, merchants can make more conscious decisions on the purchase or sale of cryptocurrencies.
Chandelier graphics are one of the most used technical analytical tools in cryptocurrency trade. They consist of a series of horizontal lines (candles) that represent safety gaps and fence prices for a certain period of time. Each candle represents only one trade, and the color of the candle shows whether it is upward or down.
Basics of Candle Draft
Here are the basic components of the chandelier table:
- Frame : Part of the candle containing actual price changes.
- Wicki : Vertical lines above and below the body, representing the highest and lowest prices during the conference day.
- Shadow : A small box above or below, representing the prices of openings and fence.
chandelier diagrams
There are several chandelier graphics, including:
- Simple candlelight : Graphic basic type, with one body and no shadows.
- Line Table
: A chart based on a line that shows price changes over time, often used for short -term analysis.
- Graphic beam : graphics that show prices changes such as beams or squares that are often used for medium -term analysis.
candlesticks
In addition to identifying trends and models, chandelier graphics are also used to identify especially candlesticks:
- Hammer model : A rising pattern with a lower heart approaching the body followed by climbing.
- Malaker Trend : A rising trend with the upper top of each of the next candle above the previous one.
- Shooting Star Chief : A lower topic where the upper heart approaches the body followed by a drop.
candlesticks
To interpret the chandelier graphics, you must understand the following:
- Open and Fenced Price : The starting price is the lowest price that is reached during the negotiating day, while the tough price is the highest price achieved.
- High and downhill
: Identifying high and low prices can help you identify trends and models.
- Support and resistance levels : These are levels where the price tends to bounce or recover after a reverse trend.
conclusion
In summary, understanding the graphics of the chandelier is crucial to making information -based investment decisions in the cryptocurrency market.