Hello Steemit !
I am @adeelasif and here am I with my HOMEWORK POST FOR TASK 10
The was nicely delivered by the worthy professor and I shall try my best Analysis and do it well.
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There are the Questions related to this Homework which I have to answer given below in full swing and details and I shall do my best
1. What is the meaning of the Japanese candlestick chart? (Original screenshot required)?
2. Explain why the Japanese Candlestick chart is so popular in the financial market with your words?
3. Explain the difference between a bullish and a bearish candle. Also describe its structure. (Original screenshot required)?
What is the meaning of the Japanese candlestick chart?
(Original screenshot required)?
In today's world the international stock market, Forex Trading, and Crypto Exchanges are showing very volatile results, volatile prices and now investing in crypto is a very risky investment, and without full understanding and knowledge one should not jump into the sea of Crypto Markets.
To understand market trends and volatility there are many tools in which we can analyze the ups and downs and can decide the best time to invest or not. The Japanese candlestick chart is one of the charts that helps us in the effective analysis of market technology and helps to make a good investment decision.
Introduction
The Japanese candlestick chart is a graphic representation of market goods by their prices, the program was developed in the 1700s by a trader named Munehisa Homma who traded in Rice, and the main reason for developing the system was the conflict between Demand and Supply in the market between the seller and the buyer.
The candlestick chart is now used worldwide to understand financial market trends for a detailed analysis of market technology. These charts are used by traders to determine price movements up and down and to use them to make future investment decisions on the basis of past trends.
Candlestick parts
The candlestick chart shows the values in three key points.
- Open Price
- Closed Price
- Action of Price (Low, High)
These price points are taken from time frames, which can be from start to finish and either half a day or 1 hour.
1. Open Price
The term is associated with the opening price of a market over a period of time, if we analyze the market last week this will be the opening price especially in the week when the market started.
2. Closing Price
This term is associated with the End Market price at a given time, if we analyze the market last week this will be the last price especially at the end of the week when the market is closed.
3. Value action (Low, High)
This term is associated with fluctuations in price fluctuations over the period of price over a period of time may be lower and higher relative to the opening price.
If the high price of a particular currency indicates the need for that type of currency in the market, and traders are interested in investing in it, then the green candlestick indicates its behavior is called the Bullish candle.
And the opposite is true when the price of a particular currency falls and there is no longer any need for it in the market its behavior portrayed by the Red Candle is called the Bearish Candle.
The candlestick chart is a very important tool for judging market statistics, and predicts future market behavior for technical reasons and is now the most commonly used tool in the Crypto market.
Explain why the Japanese Candlestick chart is so popular in the financial market?
Explain in your own words?
The origin of the Candlestick chart is in Japanese, and this chart is widely used around the world to make technical analysis and application for future financial decisions involving markets such as crypto markets and Stock markets.
These charts are more popular than other charts because they are easy to understand and we can analyze market trends at any time independent.
1. Determine Market Conduct
With the help of Candlestick charts traders can easily determine the market situation and its behavior whether it is bullish or bearish, they can easily pinpoint trading sentiment by ups and downs.
2. Get Future Directions
Candle charts help define future trends and, on the basis of past patterns. With the colorful representation of candles it is easy to judge where you can buy and sell, this also helps in future decision-making.
3. Identify market patterns
With the help of Candlestick charts it is very easy to identify bullish and bearish patterns that are not easy to see in other bar charts and financial graphs.
Explain the difference between a Bullish and a Bearish candle?
Describe its composition?
Currently Candlestick charts are well-known tools for understanding market behavior and technical analysis to get an investment perspective. The figures are drawn on a chart with the help of candles indicating inflation. And these candles are sometimes bullish and sometimes bearish. Depending on the need for the coin to invest.
At the beginning of the market all the money has its value, which indicates the candlestick when the price is high at the end of the day, then the candle showing the price volatility is said to be a Bullish candle showing a green color. This candle stays close to the previous candle and starts from a high point indicating that it is growing slowly.
TABLE
Bullish Candle Anatomy | Bearish Candle Anatomy |
---|---|
Bullish candle that starts at a low price every time the market starts and ends at a high price. Indicates the price in four | This candle is in stark contrast to the English candle, always starting at a higher price than its final price. And the red candle has had its impact. This candle also reflects market sentiment by four points. |
Open Price: The term is associated with the opening price of the market and the candle starts at this point in case the bullish candle always starts from a low price and ends at a higher price. | Open Price : The term is associated with the opening price of the market and the candle starts at this point in case the bearish candle always starts from a higher price and ends at a lower price. |
Close : The term is associated with the closing price of a market for a period of time and in the case of Bullish Candle this price remains higher than the original price | Close : The term is associated with the closing price of a market over a period of time and in the event of a bearish candlestick this price remains lower than the original price. |
Down : The term is associated with the low market value of any currency over a period of time and may be lower since the beginning of the market price but in the case of a bullish candle it will be short-lived and the price will rise afterwards. time again | Down : The term is associated with the low market value of any currency over a period of time and may be lower from the initial market price but in the event of a bearish candlestick it will be longer and less likely that value will rise. This is due to the high sales at the beginning of the market leading to low prices |
Up : The term is associated with a very high market value over a period of time which indicates the high demand for something, as well as its need to trade in the market | Up : The term is associated with a very high market value over a period of time which indicates the high demand for something, as well as its need to trade in the market. It shows that purchases were high in the market at this very moment. |
So this is all about these both terms.
Conclusion
This was about my Homework Task 10 which was related to candle patterns, I got to know about many new concepts and investments in the Crypto market that are simple but not as simple as we think, without the knowledge and understanding that there should be 100% chances are we will lose our wealth I also know some things in this homework that can really help me in the Crypto world.
I hope I get some positive feedback from the professor @dilchamo & @shemul21 for my efforts.
Thank you for your anticipation
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