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Analyze the action of prices through candle models in cryptocurrenia

The world of cryptocurrencies is a very speculative market and has been developing rapidly since its creation. Given the emergence of new parts, the growing acceptance of traditional payment systems and the growing interests of institutional investors, prices have been crazy over the years. An effective way of analyzing this price action is to explore candles models that are widely used in technical analysis to predict future trends.

What are the candle models?

The chandelier graphics is a visual representation of the price movement using candles with different colors and shades that indicate different periods (for example, hours, days). This graphics offer a complete view of the market behavior by analyzing management, momentum and volatility of prices. By examining candle models, traders can have an overview of the basic dynamics of the movement of driving prices.

Understand candles

There are several key types of candle models to be aware of:

• Hammer Graph : The bull pattern characterized by a small body, followed by a large upper wick that indicates the shopping pressure.

• Table of Stars of Shooting

  

  : Lower theme marked with long lower wicks and thin body, indicating sales pressure.

• Mackey Reverzal Graph : Inverted hammer or shooting star with longer wick, often see after strong recovery.

• Piercing Line Chart : Bull pattern with white candle, followed by a smaller green candle that indicates a shopping action.

Analyze Prices’ Action through Candle Models

Follow the following steps to analyze the prices action using candles models in cryptomains:

• Identify the trend : Search for a coherent direction and momentum to see if prices are increasing or decreasing.

• Examine a reversal model : Identify potential inversions by candle models such as hammers, shooting stars, inversions Mackey or piercing lines.

• Seek Divergence : Analyze the difference between the pattern body and its upper or lower wicks to identify eruptions or potential inversions.

4.

Example of case study: Bitcoin Analysis

Using historical data, let’s analyze the Bitcoin Action (BTC) action using candles models:

| Date | Price | Candle type model |

| — | — | — | — |

| 2019-04-10 | $ 7,100 Hammer | Haussier Hammer (a strong upward trend)

| 2019-04-11 | $ 6,800 | Shooting Star | Breakfast star |

| 2020-12-08 | $ 29,000 Haussier drilling line

The Hammer model in April 2019 meant a strong upward trend, while the shooting star models and the piercing line in December 2020 indicate sales pressure. The combination of these candle models reveals potential shopping and sales opportunities for bitcoins.

Conclusion

Analysis of action prices through candle models is a powerful tool for traders, investors and market participants. By examining historical data and identifying key trends, reverse / resistance / resistance levels, you can get valuable information about dynamics that stimulates Kryptomen prices. Be sure to consider several models of graphics, technical indicators and market conditions when taking decisions on negotiations.

Advice and resources

• Use online sources such as CoinmarketCap, Cryptocomplere or TradingView for historical data and live charts.

• Get to know the recognition of candle models using Richard Dennis books (Bitcoin Haussier Market) and Larry Williams (trading in this area).

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