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About Charts in Crypto

Candlestick charts are special price graphs used in crypto trading. They show how prices change over time. The horizontal axis displays the time period. The vertical axis shows the price. Unlike basic line or bar graphs, candlesticks pack more details. You can see the highest and lowest prices of a coin during a time frame. You also see the opening and closing prices. Thus, it becomes easier to understand the market movements and general situation by just looking at the chart.

What is Candlestick?

Each candlestick has a body and wicks. The body shows the opening and closing prices for the chosen time frame. Green candles mean the price went up, so the open is at the bottom and the close is at the top. Red candles mean the price dropped, with the open at the top and the close at the bottom. The wicks are lines sticking out from the top and bottom of the body. These lines show the lowest and the highest prices within a certain period. This time frame can be adjusted to understand the market in any way that is convenient for you.

What Can Charts Tell You?

Candlesticks reveal more than just price changes. Traders use them to understand market mood and predict future trends. This is part of a strategy called technical analysis, where past price movements help spot opportunities. Here’s what traders look for:

• A long bottom wick might mean people are buying as prices fall, hinting at a price rise.
• A long top wick could show traders are selling to take profits, suggesting a future drop.
• A candle with a big body and tiny wicks might signal strong buying (green) or strong selling (red).

These features can help you predict the next possible activities at the market, which may impact your crypto decisions.