What are Candlesticks?
Let's find out Candlesticks meaning, definition in crypto, what are Candlesticks, and all other detailed facts.
A candlestick chart is a mixture of different candles a trader utilizes to foresee the price movement. It also provides a decent summary of the price’s behavior in any chosen market.
These charts supposedly originated back in the 18th century, from Japanese rice traders. Since then, its popularity seems to have stayed the same and the tool is widely used for exhibiting prices of financial markets.
To be exact, it’s super essential to Bitcoin and cryptocurrency trading, because candlestick patterns can even reveal bearish or bullish reversals.
A bull trap is a fake indication in which a trend in a stock, index or other investment reverses after a compelling rally, and crosses a previous support level.
Candlesticks reveal the movement of an asset during a specific period of time and can indicate bullish or bearish sentiment. Traders refer to it as the candlestick patterns. These patterns are considered to be “leading” indicators. Making the tool essential for all traders.
Moreover, raw information is used by candlesticks which give updates immediately.
Many charting platforms use either green/red or white/black as their default colors. The colors are the markers that help traders to adjust.
Keep in mind that, usually, the green color represents a bullish candlestick, and the red color represents the bearish candlestick. The color can be changed at any time if preferred. When a candle’s open price is lower than the close, the candle is considered to be bullish, and the inverse is true.
The wick is the thicker component of a candlestick that is joined to the candle body from above and below. The wick above the actual body of the candlestick shows the highest price level within the period. The wick below denotes the lowest price level throughout the period.