candle chart crypto | BTCC Knowledge

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What is a candlestick in a crypto chart?

A candlestick shows the change in the price of an asset over a period of time. As the basic indicator in a crypto chart, each candlestick represents a specific price movement, including the opening and closing prices, as well as the highest and lowest price points.

What does a red candle mean in crypto trading?

A red candle shows that the closing price was below the opening price. If a candle changes to green, the price of the asset increased and closed above its opening price. As time progresses, multiple candlesticks create larger patterns that crypto traders derive signals from to make vital trading decisions.

What are candlestick charts used for?

Candlestick charts are used by traders to determine possible price movement based on past patterns. Candlesticks are useful when trading as they show four price points (open, close, high, and low) throughout the period of time the trader specifies. Many algorithms are based on the same price information shown in candlestick charts.

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