You Can Master Reading Candlestick Charts!

As we advised before, tapping into the crypto world shouldn’t be proceeded with blindfolded. People must get the appropriate knowledge and know-how techniques required in order to have a healthy crypto experience. 

Let’s give you some heads up! 

In the crypto world, you can make money through investing, trading, staking, lending, mining, and more. However, how do you know what to invest and trade in? How do you know a coin’s level of success and life spam? Well, the most common way is through chart reading. In the crypto world, we call it candlestick charts. Yes, we literally mean candlesticks! 

What are they? 

Candlestick charts come in the form of candles and they give you a glimpse on whether a coin’s market price is moving upwards or downwards, or in a negative or positive aspect. It also reflects to what extent it is moving. For example, some platforms have default time frames of 5 minutes when it comes to each candle. Users can change it, of course. In addition, at the beginning and end of timeframes, the prices show the opening and closing amounts. 

Red & Green candles! 

Candlesticks come in 2 colors, red and green. Green colored candles are formed when the price is positive or moving upwards. The opening price is at the bottom and the closing price is at the top. On the other hand, red colored candles are formed when the price is negative or moving downwards. The opening price is at top and the closing price is at the bottom. Easy right? 

The Body and Wicks! 

Now, in addition to the above, candlesticks are formed from the body and wicks. The candle’s body reflects the prices’ opening and closing amounts during a certain period of time. In addition, the wicks are extra lines showing at the bottom and top of each candle. These reflect the highest price reached at the top and lowest price reached at the bottom. 

A hint! 

Just to give you a small hint when reading candlestick charts. Other than showing price and market movements, experienced crypto users read these charts to catch a certain pattern and even anticipate the flow. This allows them to know whether it would be a good investment of not. It’s all in the research and reading!