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Zero basic to learn analysis of Bitcoin| 1 Candlestick Line
There is a trend of rising and falling, reading the price language;
There is a signal to buy and sell, and bid farewell to feeling the deal.
Today we are going to learn the most basic element in technical analysis: the candlestick line. Candlestick line is the most common price marking method nowadays.
Let’s take a look at how the price works in the market during the day.
When not processed by the candlestick line notation, the price of an investment product is such that countless prices are combined to form a seemingly erratic curve. It looks a little chaotic, isn’t it?
Next,let’s do a simple technical analysis process, mark the key price points
Opening price、closing price、 highest price、 lowest price.
We filter out the confusing price changes and draw them into a line chart.
As shown in the picture, does this look much clearer?
Can you say it in a simpler way?
Certainly. Let’s have a look at the candlestick line chart.
As shown in the figure, the opening price, closing price, lowest price and highest price are shifted to a vertical line.
The candlestick line entity is formed between the opening price and the closing price. We use a thicker line.
The entity is between the highest price and the lowest price. We use thin lines to form the hachure and lower shadow lines.
If the closing price is lower than the opening price, we mark the entity in red, indicating that the price has fallen during that time, usually called the exterior circle.
The closing price is higher than the opening price.,we use green to mark the entity, indicating that the price rises during the period, usually called the inner circle. (Of course, some markets will use the opposite color to mark the candlestick line up and down.)
When we connect the candlestick lines of each day, we will see our common candlestick line pattern.
Each red or green candlestick line in the figure represents the price change data for the day.
A day’s price trend can be expressed by a candlestick line, then one minute, one hour, one week?
According to the time range of statistical price changes, we divide the K-line into different periods. This is how many one-minute candlestick lines are connected, and this is how many “one-week candlestick lines” are connected.
Cycles are very flexible and can be divided into minutes, hours, days, weeks or months.
What role does the candlestick line play in the investment market?
When a specific candlestick line shape or a specific candlestick line combination appears, a specific price trend will probably occur.
Because prices include all market behaviour, history will be strikingly similar.
Then we will share the method of predicting future price rise and fall by observing the regularity of candlestick line arrangement.