Candlestick chart

When I talk about candlestick chart then when we see upon chart then there is a specific time period that we all can see like it is represented as a day an hour or even a minute is also shown on chsrt.There are two main parts in which we can divide the chart and these parts are: body and wicks(Shadows second name of wicks).

When we talk about body of the candlestick then it is the representation of the price range in between the opening and closing prices during these time periods. If at chart body is filled with colours then it is the presentation of that the closing price is less than opening price. If we talk about opposite case with it then we can say that if body is not colored then closing price would be more or higher than opening price.

Wicks or shadow is another part of candlestick chart which extend from start (Top) and end (Bottom) of body and it shows high and low prices that they are reaching during a specific time period respectively. When I talk about length of wicks then it is also very important because it let us know about volatility or fluctuations in the price movement of a particular cryptocurrency.

When I talk about candlestick patterns then there are different patterns that I am going to explain below:

1. Doji

If opening and closing prices would be very close to each other then we would see this kind of pattern which is known as Doji and it is the indication that in decision in market can results in any kind of reversal so this pattern is important in candlestick chart to understand.

2. Hammer

Hammer is also a pattern in candlestick chart which contains small body and a very long lower Shadow or wick.It is the indication of stepping in of buyers after decline in price of a particular currency and in other words we can say that it is the indication of reversal of bullish trend.

3. Shooting Star

Just like hammer, shooting star also has small body but long upper wick so the difference is that in hammer there was long lower shadow and here is long upper shadow and it is the indication of bearish trend and also an indication that sellers are taking control after an upward trend.

4. Engulfing

This is a patron that occurs when small candlestick is in girls by large candlestick but in an opposite direction and the trend whatever is going on,this pattern when occurs then it shows that there is a strong reversal going on or have to occur in the market.