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If you are a crypto trader, you want to know how much the coins are worth when converted to your choice of currency. You may also want to know whether you sell or keep your coins hoping to earn profit along the way. To be successful in your endeavors, you have to analyse the price charts. Analysing is daunting and confusing especially for beginners but it is a necessary step. Browse through https://smartoptions.io for more information.
The most common type of chart among traders is the candlestick. If you do not know how to read a chart, it will be impossible for you to make an educated guess especially when it comes to the movement of a particular cryptocurrency. The candlestick chart marks the movement through shapes that are referred to as candles and wicks. If you know how to read, you can easily determine the pattern of a particular coin.
Before learning how to read, it is crucial that you know the terms and you understand it. Here are the terms in candlestick charts:
What is Open?
Open refers to where the price started at the commencement of the selected time. It is characterised by the top red candle and base of the green candle. If you are looking at a daily chart, open means where the coin is at 12 am.
What is Close?
Close refers to the price closed at the conclusion of the selected time. It is characterised by the base of the red candle and the top of the green candle. If you are looking at a daily chart, close means where the coin is at 11:59 pm. Browse through https://smartoptions.io for more information.
What is High?
High refers to the highest point of the coin during the selected time. It is characterised by the high point of the candle’s wick. You will notice a narrow line that comes out of the top of the candle.
What is Low?
Low refers to the lowest point of the coin during the selected time. It is characterised by the low point of the candle’s wick. You will notice a narrow line that comes out of the bottom of the candle.
Final thoughts
Basically, the candlestick charts belong to the OHLC (Open High, Low Close) family of price charts. This is an important tool for beginners. For advanced traders, there are many chart types that they can consider. Aside from the candlestick, you can also consider the NTB (Non-time based range chart. However, this chart is harder to grasp.
It is critical that you use candlestick because it contains useful information. With the patterns that the candlesticks form, traders can gauge market condition – either bull (rising prices) or bear (falling prices) and decide based on that. As a beginner, you can make the most out of the features provided by popular platforms. Do not force yourself to learn everything overnight. Everything will make sense if you truly understand it. Read https://smartoptions.io for more information.
