The foundations of cryptocurrency and technical analysis: understanding of the graphic designers of candelabra
The cryptocurrency, a digital or virtual currency that uses encryption for safe financial transactions, has gained enormous popularity in recent years. However, it is not just the value of cryptocurrencies; Understanding their underlying dynamics is essential for making informed investment decisions.
In this article, we will deepen the foundations of cryptocurrency and technical analysis, with special attention on the graphs of the candelabra. You will learn how to identify trends, schemes and other important indicators that can help you navigate in the continuously evolving panorama of the cryptocurrency market.
What are cryptocurrencies?
Cryptocurrencies are decentralized digital currencies that use encryption for safe financial transactions. They are based on blockchain technology, which allows several parts to record transactions without the need for intermediaries such as banks. The best known cryptocurrency is Bitcoin (BTC), but other remarkable players include Ethereum (ETH), Litecoin (LTC) and Monero (XMR).
Why use technical analysis?
Technical analysis is a method for analyzing graphs and models in financial markets, including cryptocurrencies. By identifying trends, support and resistance levels and other indicators, traders can make more informed decisions on the purchase or sale of cryptocurrencies.
Candela graphics are one of the most used technical analysis tools in cryptocurrency trading. They consist of a series of horizontal lines (candles) which represent the prices of opening and closing of a safety for a specific period of time. Each candle represents a single trade, with the color of the candle that indicates if it is a movement upwards or down.
Basic notions on the candle chart
Here are the basic components of a candlestick chart:
- Body : the part of the candle that contains the movements of effective prices.
- ** W
- Shadow : a small box above or under the wick, which represents the opening and closing prices.
Types of candle graphics
There are different types of graphic designers, including:
- simple candle graph : the most elementary type of graphic designer, with a single body and without shadows.
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- bar graph : a graphic designer showing prices such as bars or squares, often used for medium -term analysis.
Models of candelabra
In addition to identifying trends and models, candle graphics are also used to identify various models of candelabra, including:
- Matello model : a bullish scheme in which the lower wick is approaching the body, followed by an increase.
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- Tire star model : a bearish scheme in which the upper wick is approaching the body, followed by a decline.
interpretation of the candle table
To effectively interpret the graphs of the candelabra, it is necessary to understand the following:
- Open and closed prices
: the opening price is the lowest price reached during the day of negotiation, while the close price is the highest price achieved.
- ups and downs : identify high and low prices can help you identify trends and models.
- Support and resistance levels : these are levels in which the price tends to bounce or go back after a trend has been reversed.
Conclusion
In conclusion, the understanding of the candelabra graphs is essential for making investment decisions informed in the cryptocurrency markets.