Steemit Crypto Academy Season 3 Week 2 - Beginner's Course- Homework| Introduction to Charts

Hello friends. This lecture is all about chart which we use in the trading world to predict the future of crypto market. I am going to do the homework for professor @reminiscence01.

Explain the Japanese Candlestick Chart? (Chart screenshot required)

The crypto world is highly volatile. The trends change every time. The market is sometime growing and sometime the price fall and downtrend start. A good trader is that who perform the analysis first before entering into the market. Technical analysis is a way to analyze the market. This is use to predict the next move of market.

Multiple tools are used in the technical analysis which make the analysis more perfect and goods. One among them is Candlestick chart. This chart was introduced in 1990 by the farmers in Japan. This is most reliable tool. After the time of creation, this tool has got a wide popularity among the traders and now used on the large scale to predict where the market will move next.

Now much information is provided to the traders about any asset in this tool to predict the future. This chart use the demand and supply concept to give an idea to the trader about the future of market. If demand is rise, the price will also raise and if demand is decrease, the supply will increase and the price will fall at that time. You get this information about any asset for a specific time period.

Moreover, it is quite important to know when to enter into the market and when to exit the market. Without knowing this, most of the time trader faced a big lose. The candlestick chart provide you information about the entry and exit spot of market for a period. You get an idea when to enter the market and when to leave the market to gain the profit.

You get to know about the market price of an asset and decide whether to invest or not. The fluctuation in price of an asset is also provided in candlestick chart. Basically two colors are used here by default(You can change them according to you). The green and the red. When the demand increase and people buy the assets, then you will see the green color in chart and when people sell their assets then this is showed by the red color.

The green color show the rise in market and red color show that the market is felling because when the assets are sold out, the supply increase and thus market fall. The candlestick help the trader to trade successfully by using the support and resistance level. The support level is best time to invest and resistance level shows the market uptrend.

Some basic points to know in candlestick Chart

Source

Feature	Explanation
High price	Refer to the high price of asset for a fixed time duration
Low price	Refer to lowest price of asset for a fixed time duration
Close	Refer to closing price
Opening	Refer to opening price

Moreover the wick line is given which show where the price of the coin will change in future. It show where the price will rise or fall in future. This help the trader to take the crypto market decisions.

Describe any other two types of charts? (Screenshot required)

Line chart

Line chart has only a single line to predict the market direction. It is consider easy and simple because there is no complexity in the line chart. The trader see the line and predict where the market will go in future. This chart show the closing price of any asset for a time duration.

Instead of bar chart, the opening, high , low prices of asset are not shown here. Only closing price is given and user predict the market next move by that line and using the closing price.

The direction of line identify the direction of market. The line moving upward shows that the market is trending upward. And if the line is moving downward, its mean that the market is falling down.

Bar Chart

The bar chart is another way to predict the market future. This is very simple and easy. This provide you plenty of information to help in predicting where the market will move next. You get the high, low, opening and closing price here. The high and low prices are given on the vertical side and maximum and minimum value are shown on the horizontal side of chart.

You can use this for predicting the market for long and short term. You get the idea whether to enter into market or it is the time to leave the market. This chart help you to predict about the market price and give you idea about the entry and exit spot. The price is different for long term bar chart and the different price of asset is shown when you want to predict the market future for short time period.

In your own word, explain why the Japanese candlestick chart is mostly used by traders.

This chart give you the detailed information about where the market will move next.

Using the information , provided on the candlestick chart, you can predict about the market price in future.

The future of market is predicted by using the demand and supply rule. This rule is use here to helps the trader to predict where the market will move in future.

The traders decide what to do next in crypto market by using the information given in candlestick chart.

Candlestick chart is very easy to understand. Even the new user do not find it much difficult.

This is used by many traders in crypto world. They use this graph to determine whether to invest or not.

It helps you to determine about the market exit and entry point.

The color scheme is also helpful here. If market is going up, the green color will be show in the chart. And if you see the red color, then the market is falling downward.

The traders get the idea about when the market will go up or when it will move down. The bull and bearish period of market is predicted using the candlestick chart.

The asset past price and the current price helps the trader to predict what will be the future price of asset.

Describe a bullish candle and a bearish candle identifying its anatomy? (Screenshot is required)

The market is versatile. The trend keep changing. The market sometime rise and demand increase. This raise the price of asset and market is said to be in uptrend at that time. This time is best for traders to sell their holding coins. The price of asset is high so the traders get the good profit by selling their coins in uptrend period. The uptrend is also known as bullish period of market

And if the demand decrease, the supply of coin is rise. The price then fall automatically and market is said to be in downtrend. The market downtrend is the best time to invest. The traders buy the coins in bearish period. The coin price is low so the traders buy the coins at low p[rice and then hold them till the market start rising. They sell the coins in maket bullish period and earn profit.

Source

Candle Opening price. This point provide the user with the information about the market opening price of the asset. The trader get to know about the price at which the market will start. This is the point from where the market start and rising.

Candle Closing price. This is the point where the user get the information about the closing price of the market. This is the point where the closing point is describe. The trader come to know when the market will close and what will be the closing price.

The highest Price: The highest price is the spot where the price of the asset is at its highest point. his is right time to sell the coins. This spot refer to the highest price of asset for fixed ime duration.

The lowest price. This is the point where the user get to know about the lowest price of coin for some specific time period. This refer to the lowest price of coin. This is the right time for the traders to buy the coins. This shows the coins lowest price for fixed duration.

Conclusion

In this lecture, the professor describe the Candlestick chart in detail. The candlestick chart help the trader to predict the market future. You get the information about the market high, low, opening and closing price for fixed time duration. The helps the investors to take the market decisions.

Then bar chart and line chart are discussed. Both are also use to predict the market next move. i am very thankful to professor  @reminiscence01 for this lecture.