Technical analysis of Bitcoin currency chart
How do you Analyse a Bitcoin chart?
Developing the right skills on how to read crypto charts is an art. This new skill will help you track the price of your favorite coin. Our team can guide you on how to learn the technical analysis of Bitcoin currency chart.
Timing the market is a common problem that many new traders have.
If you want to have accurate entry and exit points you need to use cryptocurrency charts.
You can have a really great trading idea and believe that Bitcoin is about to go up, but if you pick the wrong point,
you’re going to start losing money left and right.
Does technical analysis work on Bitcoin?
I should say Yes,
The technical analysis do work on bitcoin as this analysis helps to track and predict the future price movement on the basis of historical record.
This will help to find the precise time and opportunity to enter the market,
bag the targeted profit and exit market successfully.
We want to teach you the types of Bitcoin currency analysis charts.
Types of charts:
there are three types of charts that can be used in technical analysis according to the reader’s purpose :
Line charts are the simplest charts in technical analysis and they only record the closing price of transactions in each timeframe.
For example, line charts in a one-day timeframe show only one point on the chart per day.
This point is the last price traded that day.
By connecting the points obtained from each day, a line chart will be obtained in one-day timeframe.
The only drawback of this chart is that it only records the final price.
That is, only the last price of that day in the line chart is valuable and the rest of the trades made in one day are worthless.
We suggest that if you plan to use a line chart for analysis, set it to the default mode, the closing price.
The bar charts for each timeframe show a bar with the highest and lowest prices.
The starting and closing prices are shown on each bar.
Each of these bars consists of vertical lines in which the starting and closing prices are indicated by horizontal dashed lines.
The two sides of each bar show the highest and lowest prices.
The start price is displayed with a horizontal dash on the left and the closed price with a horizontal dash on the right side of the bar.
Descending and ascending bars
The bars have two ascending and descending states.
The difference between the two is in the opening and closing.
In the uptrend bar, the low price opens and the high price closes.
In the descending bar, the high price opens and the bottom closes.
When the price bar is on the right, OPEN is higher than CLOSE.
This indicates that the price is decreasing at the end of the day and this is a descending price bar.
The information of candlestick chart is similar to the bar chart.
The difference with this chart is that it focuses more on open and closed stock price.
These charts show a candle at each time frame.
Like bar charts, each timeframe can represent a minute, an hour, a day, or a month.
In bullish candles, the starting price is lower than the closing price.
In bearish candles, the closed price is lower than the starting price
And the color of these candles is often red or black.
Each candle in candlestick charts consists of two parts:
The thin line above and below the actual body is like a candle wick, called shadows.
Shadow represents the highest and lowest price in a day.
The higher the size of the shadow than the body, the buyers have entered the market with more power and increased the share price.
But for some reason, sellers have also entered the market and reduced the price to the final price.
Also, if the shadow is lower than the body, it indicates that the sellers have tried very hard to sell the stock at a low price,
For some reason, buyers have caused the price to rise to the final price.
also you can read this article : Information About Different Types Of Bitcoin Addresse