In the investment world, there is a kind of pattern that can indicate a movement in an asset. No exception for crypto investment which also has technical indicators, one of which is Candlestick.
Quoted from Pintu Academy, Candlestick is a technical indicator that represents asset price activity within a certain time frame, such as minutes, hours, daily, or weekly.
Each candlestick displays the open, close, high, and low price data.
The function of Candlestick is to provide investors with an overview of the potential for future price movements, both bullish (up) and bearish (down).
Reading candlesticks is important because it helps investors get price movement signals and understand market psychology.
Candlesticks have parts called ‘body’ and ‘shadows’. The body shows the difference between the opening and closing prices, while the shadows show the highest and lowest prices within a given period.
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There are three main candlestick patterns among them, bullish reversal, bearish reversal, and continuation.
Bullish reversal indicates a reversal of an uptrend, bearish reversal indicates a reversal of a downtrend, and continuation indicates a continuation of the trend.
Examples of bullish reversal patterns include the Bullish Hammer and Morning Star, while bearish reversal patterns include the Bearish Harami and Dark Cloud Cover. Continuation patterns, such as the Doji and Spinning Top, indicate market uncertainty. (Z-1)
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