Analysis of the Price Action Throgh cryptocurrency
The world of cryptocurrencies has a character and quickly marks its foundation. With the emergence of news, increasing traditional payment systems and interest fostors, she finds the fluctuations that you have over the years. It is used in technical analysis on effective Weazin by expaming canlestick patterns.
What are Candlestyk patterns?
Handlestick diagrams are a visual repression of the movement, which shadows different colors and the varices of the period (e.g. hours, days) using the candles. These diagrams offer a comprehensive overview of the behavior mark by analyzing the lock, dynamics and volatility of the prices. By examining pauters of candles, retailers can gain insights into the underlying dinamics in the mines.
Understand Candlestick pattern
There are several types of KY of candlestick patterns to familiarize yourself with yourself:
- Hammer card
: A bullish pattern marked by a small body, followed by a large upper wick, signs of pressure.
- Stern diagram : A bearish pattern that is characterized by a longer wick and a thin body.
- Mackey reversal diagram
: A reverse hammer or a shooting star pauser but a length of length that is open after a string upswing.
- Piercing Line Chart : A Bullischer Feucker Featlestick, followed by a smaller green candle that indicates.
Analysis of the price campaign by candle pattern *
In order to analyze the price framework in cryptocurrencies, follow the steps:
- Identify the trend : Look for consistent primary and impulse to determine whether you stand out or to be.
- Examine reverse patterns : Identify potential reversal in candle patterns, souch ash, shooting surfaces, Macke reversal or through lines.
- Find for divergences : Analyze the difference between a pastefy and its upper Orlower -because of mycotes or reversal.
- Consider the support and level of resistance : Identify? and Bollinger tapes.
Example study: Bitcoin price analysis *
Let us analyze the price of the effect of Bitcoin (BTC) via Candlestick -Palens using Hussporial data:
| Date | Price | Candle type | Pattern |
| — | — | — | — |
| 2019-04-10 | $ 7,100 | Hammer | Bulish hammer (strong upward trend) |
| 2019-04-11 | $ 6,800 | Shooting Star | Bearish Shooting Star |
| 2020-12-08 | $ 29,000 | Piercing line | Bulish piercing line |
The hammer in April 2019 marked a strong upward trend, it turned the star and the piercing line in December 2020 Humg. The combination of the candlestystick shows potential purchase and sales options for Bitcoin.
Diploma*
The analysis of the campaign price is a pace of candles that is a powerful tool for dealers, investors and market participants alike. The expamination of is Hishin data and the identification of KY, reverse patterns and support/resistance levels, Yu can win. Kryptocurrence prices. Remember to take into account multi -perast patterns, Technica indicators and brands that make trading decisions.
Tips and resources
- Use online resources such as coinmarketcap, cryptocompare or trading view for historical data and live.
- Familiarize yourself with the detection of candlestick pattern that Richard Dennis (the Bitcoin Bull Market) and Larry Willams (trade in it) uses.
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