Candlestick What is a 'Candlestick' A candlestick is a chart that displays the high, low, opening and closing prices of a security for a specific period.The wide part of the candlestick is called the "real body" and tells investors whether the closing price was higher or lower than the opening price.Black/red indicates that the stock closed lower and white/green indicates that the stock closed higher.BREAKING DOWN 'Candlestick' The candlestick's shadows show the day's high and low and how they compare to the open and close.A candlestick's shape varies based on the relationship between the day's high, low, opening and closing prices.Candlesticks reflect the impact of investor sentiment on security prices and are used by technical analysts to determine when to enter and exit trades.Candlestick charting is based on a technique developed in Japan in the 1700s for tracking the price of rice.Candlesticks are a suitable technique for trading any liquid financial asset such as stocks, foreign exchange and futures.Long white/green candlesticks indicate there is strong buying pressure; this typically indicates price is bullish, however, they should be looked at in the context of the market structure as opposed to individually.

For example, a long white candle is likely to have more significance if it forms at a major price support level.Long black/red candlesticks indicate there is significant selling pressure.This suggests the price is bearish.A common bullish candlestick reversal pattern, referred to as a hammer, forms when price moves substantially lower after the open, then rallies to close near the high.The equivalent bearish candlestick is known as a hanging man.These candlesticks have a similar appearance to a square lollipop, and are often used by traders attempting to pick a top or bottom in a market.Two-Day Candlestick Trading PatternsThere are many short-term trading strategies based upon candlestick patterns.The engulfing pattern suggests a potential trend reversal; the first candlestick has a small body that is completely engulfed by the second candlestick.It is referred to as a bullish engulfing pattern when it appears at the end of a downtrend, and a bearish engulfing pattern at the conclusion of an uptrend.

The harami is a reversal pattern where the second candlestick is entirely contained within the first candlestick and is opposite in color.A related pattern, the harami cross has a second candlestick that is a doji; when the open and close are effectively equal.Three-Day Candlestick Trading PattersAn evening star is a bearish reversal pattern where the first candlestick continues the uptrend.The second candlestick gaps up and has a narrow body.The third candlestick closes below the midpoint of the first candlestick.A morning star is a bullish reversal pattern where the first candlestick is long and black/red-bodied, followed by short candlestick that has gapped lower; it is completed by a long-bodied white/green candlestick that closes above the midpoint of the first candlestick.About Latest Posts Latest posts by Dean (see all) My Long Awaited Altcoin Trading Article: STOP BUYING ALTCOINS THEY ARE IN A MASSIVE BUBBLE Orocrypt ICO: Own a share of a gold backed cryptocurrency network Wagerr Decentralized Sportsbook: ICO Crowdsale; ‘Be The House’ Oracle Opportunities Latest Price News and Analysis An error occured for when trying to retrieve feeds!

Check the URL's provided as feed sources.bitcoin keychainWhat is Technical Analysis?bitcoin usage singaporeTechnical analysis (TA) is a methodology for forecasting future price movements by studying past market data for price and volume, and seeking patterns within that data.bitcoin for sale in ghanaA technical analyst will look for continuing patterns, or trends, which indicate the general direction of price movement.bitcoin best paying poolThey will also look for repeating patterns, which are used to gauge whether a trend is likely to continue or reverse, and to indicate the point at which a reversal may take place.dogecoin value dollar

In addition to visually recognizable patterns, various mathematical models are used to indicate trend reversals or confirm continuing trends.cara mendapatkan bitcoin gratis dengan cepatThese mathematical ‘indicators’ are often visually represented on charts using an ‘overlay’.bitcoin physical coin walletIndicators can be used to select entry points for longer term positions determined via fundamental analysis, or for day trading strategies such as swing trading.bitcoin nick landMany of these visual and mathematical patterns, which tend to repeat over and over again in various different financial markets, have been identified over the course of centuries.bitcoin utopia

Analysts will seek to identify these patterns forming within current market data  in order to find indicators for forecasting, and multiple indicators will usually be combined together to provide buy or sell signals of varying strengths.A typical chart has been embedded at the top of this page which includes two common indicators – Bollinger bands and moving average lines – and one more interesting and unusual indicator: the phases of the moon.You can modify the chart to look for other indicators by clicking the button which looks like a bar chart with a zig-zag arrow above it.Does it Work for Bitcoin & Altcoins?The patterns studied by TA are generally caused by the actions of market participants themselves, rather than any changes to the underlying value of what is being traded (although of course the underlying value changes are ‘priced in’ by the market participants).They represent common psychological traits, the actions of people making decisions based on knowledge which comes into their possession, and so on.

As such, these techniques can be applied to most financial markets.It is generally thought, however, that these techniques do tend to break down in smaller markets with low volume and liquidity.So it is probably safe to say that if technical analysis works at all, then it should work for Bitcoin.But is also true to say that it will be unreliable for smaller altcoin markets.This is not a hard rule, but a general guide.The most popular altcoins, or coins going through periods of high volume, may prove to be valid exceptions.It is down to the individual trader to make a judgement as to what extent these tools can be trusted for any specific market.Top Resources for Bitcoin Technical Analysis by Experts If you are new to this topic then perhaps the best thing that you can do is follow the analysis provided by established experts, both for making more educated investment decisions and for learning how to become a better analyst yourself.You can view some great articles published on news websites in the left hand column of this page, but for more detailed and timely information here are some of the best sources for professional analysts’ opinions on the Bitcoin price: XBT Social: For a monthly membership fee this site give you access to a daily analysis by professional traders, email alerts for sudden price movements, exclusive news stories, and access to an ‘exclusive community’ of other traders.

BullBearAnalytics: A team of professional analysts provide paying members of this site with complete, actionable trade signals for both BTC and altcoins, a daily market update, and a more in-depth weekly report.BraveNewCoin Reports: This is a well-known information site which publishes regular reports covering sentiment, fundamental and technical analysis extended across a wide range of altcoin markets as well as BTC.TradingView: In addition to providing a range of charting tools you may find useful, TradingView allows its users to share their analysis with others.This is the only source in this section where you an view content for free, but please beware that not all of the authors are professional traders.Analyst Opinion Summary with simple signals of ‘Strong Buy’, ‘Buy’, ‘Neutral’, ‘Sell’ and ‘Strong Sell’.It is automatically set to a 1 minute time Frame which probably won’t be very useful for most traders, but you can change that to display a longer period without leaving the page: Bitcoin Technical Analysis Software: Charts and Tools A handy charting tool created by TradingView is provided at the top of this page, and I wholeheartedly recommend you have a play with it if you haven’t already.

But of course there are also many other useful charts and tools that you may like to use.Here are some of the best ones: Cryptowatch – This site allows you to view price data chart from a range of different exchanges for BTC/USD, BTC/EUR and BTC/CNY.They offer a range of different chart types including Heikin-Ashi, bar, line, mountain or candlestick, and access to a wide range of customizable indicators and overlays.If you create an account you can also connect it to the Bitfinex exchange API and use it as a complete trading platform.BTC-E – One of the most popular tools on the traditional financial markets is MetaTrader 4.This exchange allows you to use MT4 for Bitcoin trading.Bitcoin Charts – This site has a clean design and is easy to use, and offers a wide range of charts including candlestick, OHLC, closing, median, or typical price, and weighted close.You can view data from pretty much every BTC/fiat exchange with up to four indicators at a time.Quandl – If you want to go beyond price and volume data to look at things like the transaction and mining data then this is a great source of information with lots of different charts and the option to export data via API or download as CSV files.

TradingView – You can see and use the charting tool from TradingView at the top of this page.BitcoinChain – An interesting combination of TA charting tools and block explorer for general network stats and transactions, which also pulls order books and latest trades from several top exchanges.Best Free Sites to Start Learning Technical Analysis There are loads of great resources available on the internet that you can access for free, to start your journey and learn all about TA.Here is a small selection of the best ones: Investopedia: The Basic of Technical Analysis – If you are a complete beginner then this is a great place to start.It will introduce you to the basic principles and terminology that you need to know, as well as some of the most popular chart types and indicators. website includes a huge amount of information on every aspect of TA.InvestTools – There are some really excellent paid courses here, but there are also several free classes which are well worth it for beginners.