Risk Disclaimer: I am not a financial advisor, trading is risky, trade at your own risk, I am not responsible for you profits and losses.
The OHLC:
Candlestick represents the information of the Opening price, the Highest price point, the Lowest price point and the Closing price of a particular candle. A single candle on the 5 minute chart represents the 5 minute data on that chart and thus takes 5 minutes to complete the candle. Same goes for the Daily candle, the hourly candle and the weekly candle. The red candle represents that the closing price was lower than the opening price while the green candle or the bullish candle represents that the closing price was higher than the opening price. The upper wick represents the highest price point of the candle and the lower wick represents the lowest price point of the candle. The candle bodies represents the open and close of the particular candle. A candle closing is significant meaning a lot of things can happen between the opening and the close so traders must wait for the candle to completely close. This rules becomes more strict as the higher the time frame were watching.
Candlestick patterns:
There are many candlestick patterns available, I will be surprised if a single person have memorized all these formations. I will outline the important ones in this lesson.
Doji: This candlestick has little or no body, with huge upper and lower wick and it indicates that there is indecision in the market.
Hammer: This candlestick has little or no body with huge lower wick and little or no upper wick. This usually represents the bottom of a trend or a price decline.
Inverted Hammer/Shooting Star: This candlestick has little or no body with huge upper wick and little to no lower wick. This usually represents the top of a trend or price rally.
A note for beginner analyst: In the previous lesson I mentioned that entry triggers are based on the many factors that comes with it. Take a look at hammer for example, it would make sense to enter if this formation is found at support zone. As these patterns caused reversals it may not make sense if it is found in a tight range or consolidation. Thats all for this lesson, consider leaving a BTC tip if you enjoyed this tutorial: 19qTMkmH53mJBB4rx7ZcKKz3yGuTM6AACz
