CryptoAcademy Homework week 2 by Crypto Professor @stream4u| How to read candle stick charts in different time frames and information about buy-sell (support and resistance)|written by @chinma (post 100% power up)

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I. Explain the meaning of the green and red candlesticks and how to read the green and red candlesticks with candle images.

Answer. Green candlestick: The green candlestick also called the bullish candlestick indicates a market where the closing price is above the opening price. It also has two wicks on both it's vertical sides which indicates market sentiments.
The green candle below shows that price opened at $50, went down to $45, increased to $65 and closed at $60. This is actually an uptrend.

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Red candlestick: the red candlestick also called the bearish candlestick is a situation where the closing price is below the opening price.
The red candlestick below shows that price opened at $60, went up to $65, crashed down to $45 and closed at $50. It indicates an uptrend to a downtrend.

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II. Explain with a candle chart, what are the time frames available that we can set into the chart and why it needs to change the candle time frame.
Answer. Time frames available from my binance screenshot attached range from 15m, 1hr, 4hrs, 1day and the more button shows that one can even check a 1min to 1 month.

Time frames need to be changed to see if a common trend is the strongest. Also, different times of the candle chart with a combination of multiple green and red candlesticks shows different upsides and downsides.

III. Show any particular asset candle chart in a different time frame and explain in short what you see in the chart, like which trend we see, what are the price levels.

Answer.
From my screenshot below, I used the 15minutes timeframe and one hour time frame.
In the 15minutes time frame, it can be seen that there is a downtrend. The moving averages show that price is decreasing.

In the 1 hour time frame, the story is also no different. It also indicates a downtrend.

IV. What type of traders are in the market? Explain how they work.
Answer.
We have three types of trader viz: short term traders, long term traders and scalable traders.
✓Short term traders; the short term traders are also called the day traders meaning that their trade is within a day. They trade in the minute time frame e.g 5minutes, 15minutes, 30-45minutes. They find their buy/sell positions within this time frame and if it favours them, they take advantage of it.

✓Long term traders also called the holding traders follows the day or weekly time frame. Once the perceived target is achieved, they buy/sell.

✓Scalping; these traders rarely follow any time frames. They just stalk the market and if they see any quick price movement, they take advantage.

V. In trading and investing in assets what are the importance of support and resistance. Explain how they work.
Answer.
Support and resistance shows us when the prices are going up and when they are going down. This in turn tells us when to buy or sell. When you watch the market with different time frames, when you notice a particular price level that price reaches and then begins an uptrend, you have patience and watch. If it repeats, you can buy. That lowest price is the support.
On the other hand, the highest price (resistance) that a downtrend follows, you study and sell.

VI. How can we find support in a candle chart, explain with one of the asset candle chart with screenshot and point the levels.

As seen in the chart above, the lowest price levels marked by the blue horizontal lines, shows the support. The two marked lines shows the lowest price levels in the chart above after which an uptrend begins.

VII. After finding support, when and where do we need to place a buy order (explain with a chart screenshot)

The spots marked with blue arrows shows points where we can place a buy order. At these spots, prices are at the lowest and begins increasing afterward. But then, we can be patient between the first and second arrow before buying just to be sure the price level dips that much.

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