Principles for trading cryptocurrencies part 2
In the previous article we’ve analysed the main tools used particularly in trading and crypto trading. We've explained such important element as a chart
. Keep in mind that charts
can be different, and each trader can use different charts and time frames
. For example S#.Data (Hydra)
program may build charts of various trading elements and time frames
such as ticks, candles with various periods and volume charts. All of this give you a wide look to analyse the market, assess risks and its perspectives.
A pair may have different charts which can be distinguished by time frames. So for instance, the chart can be of 5 or fifteen minutes period. These periods named are Time Frame
Let's look at the basic elements of Japanese candle
. The rectangles on the chart is the body of a candle
. The body of candle is formed based on the values of beginning and the end of the chosen time frame.A candlestick is a type of price chart, and its candlestick can have bullish pattern if the opening price is lower the closed price, or in the opposite direction is bear candlestick. In the S#.Data (Hydra) program candles adopted green and red colour therefore we can determine the rise or fall of selected exchange tool.
Also, a shadow is a line found on a candlestick chart which indicates the maximum and minimum price during the forming process. In the case of the absence of the upper shadow is considered that candle's top being cut off or the opposite is the base is cut off.
is a candlestick with no real body, where the open price is equal to the closed price. If the body of the candle is small, then it is called a spinning top
. S# programs
allows traders to read candles as much as possible. A friendly interface and advanced analyses tools make them crucial for traders because the ability to read the candles it reduces the risks, especially in crypto currency market.