How to Read Candlestick Patterns, Beginner Traders Read This!

In the world trading crypto assets, how to read candlestick patterns or market movement charts is very important to learn. 

Through reading charts, Vicigers friends can make the right technical analysis, especially when they want to make decisions. Of course, learning it is not easy.

Especially if you are a beginner and want to learn technical analysis at the same time reading charts or pattern. However, you don't need to worry, because in this article VCGamers will share how to read candlestick patterns.

Although complicated, but how to read it is very simple. Because, in technical analysis, there is a theory that explains that history will definitely repeat itself in future price movement patterns.

Now, to see this historical movement, traders really depend on the type of candlestick. Want to know how to read patterns quickly? See how to read the candlestick pattern below until it runs out. 

How to Read Candlestick Patterns

Candle patterns display all the important information about the price of crypto assets in the digital asset market. Using the light method, Vicigers' friends can set the correct entry and exit points and perform analysis. Candlestick patterns create different patterns and charts that can help in predicting future market trends.

Choose Time

Crypto candlestick patterns can make it easier to choose the time frame you want to display. You can choose movement time of 5 minutes, 15 minutes, 1 hour, 4 hours, daily, weekly or monthly. You can adjust it according to your needs.

Volume

The candle pattern will reflect the volume of crypto assets being traded at one time. Volume shows how much the crypto market traded in the selected period. The higher the number, the more people buying or selling.

When the volume shows green, it means there is interest to buy cryptocurrency. And if it shows red, it means less interest in the coin and selling pressure.

Bearish and Bullish indicators 

There are two types of candlestick patterns, viz bearish and bullish. The green chart represents a bullish candle showing price increases over the selected period.

The top of the candle represents the closing price, while the bottom represents the opening price. This situation is considered dangerous. A bearish spot represents a red candle indicating a decline in price. The top of the candle represents the opening price. When the bottom shows the closing price. 

Also read: Recognize this Bearish Candlestick So You Don't Get Stuck!

Candle wick

There is also a lampstand or axis that people often refer to as a shadow. Wick will tell you the price changes that move depending on the duration of the light.

It's also important to be careful with body comparisons on this axis. When the value of a stock or crypto fluctuates, the axis will be longer than that.

When the long wick is pointing downwards, it indicates that market participants will reduce the price, but they will not be strong enough to keep the price low.

Under the same conditions, other market participants will actually buy the goods, which will lead to higher prices. Well, this situation is known as a bullish reversal.

On the other hand, if the wick is in first place, it means that the trader or investor is making more profit than those who decide to hold. This would create a bearish reversal.

That's how to read patterns candlesticks. Therefore, candle patterns are an ancient method of charting from Japan, the purpose of which is to increase the accuracy of calculations. You can find out how to read candlestick patterns in the method above.

Also read: Get to Know the Bearish Flag and How to Know It

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