Candlesticks cryptocurrency

The point where the lower wick meets the body is the opening price, while the point where the upper wick meets the body is the closing price. The top of of the upper wick is the high price, and the bottom of the lower wick is the low price. See the diagram below. What is a bearish candlestick? A bearish candlestick is red. People are selling and the price has dropped. The point where the lower wick meets the body is the closing price, while the point where the upper wick meets the body is the opening price.

The story of a candlestick While candlesticks may appear to be completely analytical in nature, they actually convey a complex story that is constantly evolving through contributions of market participants. The implications are profound. Here are some scenarios that you might come across. Cryptocurrency traders usually open long positions when these patterns show up.

Here they are: 1. Hammer Pattern The hammer candlestick consists of a short body with a much longer lower shadow. As a rule, you will find it at the bottom of a downtrend. The pattern indicates that bulls resisted the selling pressure during a given period and pushed the price back up. While there may be hammer patterns with green and red candles, the former points to a stronger uptrend than red hammers.

Inverse Hammer The inverse hammer is quite similar to the previously described pattern. It is different from the standard hammer in that it has a much longer upper shadow while the lower wick is very short. As a result, buyers come back with even stronger coercion and push prices higher. Bullish Engulfing Unlike the previous two patterns, bullish engulfing is made up of two candlesticks. The first candle should be a short red body engulfed by a green candle, which is larger.

While the second candle opens lower than the previous red one, the buying pressure increases, leading to a reversal of the downtrend. Piercing Line Another two-candlestick pattern is the piercing line, which may show up at the bottom of a downtrend, at the support level, or during a pullback. The pattern consists of a long red candle that is followed by a long green candle.

The fact that the green candle opens much higher points to buying pressure. Morning Star The morning star pattern is more complex because it comprises three candlesticks: a long red followed by a short-bodied candle and a long green.

Usually, the middle candle will have no overlap with the longer ones. Three White Soldiers Another three-stick candle is the three white soldiers. It is made up of three long green candles in a row, generally with microscopic shadows. The condition is that the three consecutive greens have to open and close higher than the previous period. It is regarded as a strong bullish signal that shows up after a downtrend.

These patterns generally prompt traders to either close their longs or open short positions. Here they are: 7. Hanging Man The hanging man is the same pattern as the hammer, only inversed. Thus, it is formed by a green or red candlestick with a short body and a long lower shadow.

It shows up at the end of an uptrend. It suggests a considerable sell-off during a given period, but bulls could temporarily push prices higher, after which they lose control. Shooting Star The shooting star is the opposite of an inverted hammer. It consists of a red candle with a short body and a long upper shadow. Generally, the market will gap a bit higher on the candlestick opening and will surge to a local peak before closing just below the open. The body can sometimes be almost non-existent.

Bearish Engulfing The bearish engulfing is the inverse version of a bullish engulfing. The first candle has a small green body and is completely covered by the next long red candle. This pattern comes at the peak of an uptrend and suggests a reversal.

The lower the second candle continues, the more momentum the bearish move will have. Evening Star Again, the evening star is the inverse version of the bullish morning star, and it represents a three-stick pattern. It consists of a short-bodied candle that comes between a long green candle and a large red candle.

Three Black Crows The three black crows are like the bullish three white soldiers but only inversed.

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What Are Candlesticks? A candlestick chart is a method of showing prices — namely open, high, low and close — of an asset for a defined period. Candlestick charts are thought to have originated from Japanese rice traders in the 18th century. They are still one of the most popular ways of displaying prices of financial markets. A candlestick gives a good summary of how price behaved during the period being charted.

All charting tools allow you to change the period of the candlestick chart, from one minute periods to one week or month per candle. This allows the trader to view market sentiment quickly using colors and get a good understanding of how prices behaved over a selected duration.

By default, a bullish candlestick is green on Liquid. It's bullish because there's strong positive price movement. The point where the lower wick meets the body is the opening price, while the point where the upper wick meets the body is the closing price. The top of of the upper wick is the high price, and the bottom of the lower wick is the low price.

See the diagram below. What is a bearish candlestick? A bearish candlestick is red. People are selling and the price has dropped. The point where the lower wick meets the body is the closing price, while the point where the upper wick meets the body is the opening price.

The story of a candlestick While candlesticks may appear to be completely analytical in nature, they actually convey a complex story that is constantly evolving through contributions of market participants.