Pricing Action Analysis Using Candlestick Models Cryptocurrency
The cryptocurrency world has been a very speculative and fast -growing market since its establishment. With the emergence of new coins, the increasing acceptance of traditional payment systems and the increasing interest of institutional investors, prices ranged extremely over the years. One effective way to analyze this price action is to analyze candlestick patterns, which are widely used in technical analysis to provide future trends.
What are candlestick patterns?
Candlestick charts are a visual image of the price movement using candles of different colors and shade showing different periods (eg hours, days). These charts provide a detailed view of market behavior in analyzing price direction, acceleration and volatility. Exploring the candlestick models, traders can gain insight into the main changes in dynamics driving prices.
Candlestick models understanding
There are several basic types of candlestick patterns to get to know:
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- Mackey Reverse Chart
: Inverted hammer or shooting star model with longer lower wick, often visible after a strong rise.
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Pricing Action Analysis Using Candlestick Models
To analyze the price action using candlestick models in cryptocurrencies, follow the following steps:
- Set trend : Look for consistent price directions and acceleration to determine whether prices are rising or falling.
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- Find differences
: Analyze the difference between the body’s body and its upper or lower wick to determine possible fractures or cancellations.
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Example case analysis: Bitcoin price analysis
Using historical data, let’s analyze Bitcoin (BTC) prices by candlestick models:
| Date | Price | Candle type | Model |
| — | — | — | — |
| 2019-04-10 | $ 7 100 | Hammer | Bullish Hammer (strong ascent)
| 2019-04-11 | $ 6800 | Shooting star | Bear shooting star
| 2020-12-08 | $ 29,000 | Pierced line | Bullish Earrings Line
2019 April The “hammer” model noted a strong rise, and the shooting star and the pierced line models in 2020. December Offered sales pressure. The combination of these candlestick models reveals the possible purchase and sale of Bitcoin.
Conclusion
Analysis of price actions using candlestick models is a powerful tool for merchants, investors and market participants. By examining historical data and determining the main trends, models of replacement and support/resistance levels, you can gain valuable insights into the dynamics of cryptocurrency prices. When making decisions on trade decisions, remember to consider several diagrams, technical indicators and market conditions.
Tips and Sources
- Take advantage of online sources such as CoinmarketCap, CryptomPare or Tradingview historical data and direct charts.
- Meet the Candlestick model recognition using Richard Dennis Bull Market and Larry Williams.