Topic: INTRODUCTION TO CHART FOR NEWBIES - page 2. (Read 521 times)
Very informative thread op, that's very helpful to newbies because when I started to try trading I didn't introduce myself in these kinds of charts when I was a newbie and I think that was my mistake, I thought it's too technical for me so I just wait for the price that I want to show in the sell order, but I didn't know it was pumping and bullish and I should have a much greater profit if I follow the chart and analyze it carefully. But now I'm using the candlestick chart because it's easier for me to know. and my tips are you should have a basic understanding when it comes to trading so you don't incur losses.
Lastly, like I said above, these analyzing part of trading is very important but indicators like RSI, Bollinger bands and both Relative and exponential moving average should not be left out as they are also very important to analyze crypto market.
These are parameters Ive often used. Honestly Im not relying on candle stick not because Im having hard time getting used to it, but the part where I applied the keypoints and never still got a good result. Anyway, there are some indicators work on our own style. As long as profit lingers on my own technique then I called it trading strategy. It depends on what method trader will used and how it works for them perfectly.This post will help many users on chart reading.
Much better termed is analyze. Since its trading aspect you need it and not just the capability to read it. 
Most persons haven't gone in to trading just because, they don't have or understand the basis such as explained in this op. It's a fine and self explanatory one I give you that.
At least now, some of us won't be so confused on what happens in the market place anymore.
At least now, some of us won't be so confused on what happens in the market place anymore.
Newbie trader question though
I understand that having an idea about reading the parts and the know how of a candlestick is important such as wicks and interpretation of their body. However, I have watched a particular free online trading course on youtube that observing the movement of individual candlestick religiously is not recommended and is not the way of how professional trader makes a trade in the market.
Based on his explanation, it is not about candlestick but rather based on support and resistance, trends, levels, market demands or simply the accumulation and distribution. I haven't finished the course yet but i think I will understand why trading that depends on reading candlestick is not that much important.
Anyhow, thanks for the introductory part that I have missed about candlestick. Well appreciated
I understand that having an idea about reading the parts and the know how of a candlestick is important such as wicks and interpretation of their body. However, I have watched a particular free online trading course on youtube that observing the movement of individual candlestick religiously is not recommended and is not the way of how professional trader makes a trade in the market.
Based on his explanation, it is not about candlestick but rather based on support and resistance, trends, levels, market demands or simply the accumulation and distribution. I haven't finished the course yet but i think I will understand why trading that depends on reading candlestick is not that much important.
Anyhow, thanks for the introductory part that I have missed about candlestick. Well appreciated
Job well done OP, but I think most of us can read chart especially that it is the simplified form of representing data being collected over a period of time. Aside from that the colors also indicates the data that been observed in the actual.
This chart topic reminds me of the statistics we had made in college days, we had so much trouble in the making for we are confused in the data to entry in the x and y axis bar. We had made some arguing but in the end we failed by our instructor. So much fun now remembering it. LOL
This chart topic reminds me of the statistics we had made in college days, we had so much trouble in the making for we are confused in the data to entry in the x and y axis bar. We had made some arguing but in the end we failed by our instructor. So much fun now remembering it. LOL
This is great in studying the charts used in trading, be it crypto, forex or stock trading, the line, bar and Japanese candles still are the most important part to learning how to trade, but indicators has to be learnt also.
In addition to what the OP has posted, beginners learning how to trade should also know that trading is risky and lead to either gain or loss, it has to be done without greediness and with patience. Some new traders trade with low quality mind set with no discipline but believing in luck, that is why it is not surprising new traders often lose because they do not consider these criteria.
Lastly, like I said above, these analyzing part of trading is very important but indicators like RSI, Bollinger bands and both Relative and exponential moving average should not be left out as they are also very important to analyze crypto market.
In addition to what the OP has posted, beginners learning how to trade should also know that trading is risky and lead to either gain or loss, it has to be done without greediness and with patience. Some new traders trade with low quality mind set with no discipline but believing in luck, that is why it is not surprising new traders often lose because they do not consider these criteria.
Lastly, like I said above, these analyzing part of trading is very important but indicators like RSI, Bollinger bands and both Relative and exponential moving average should not be left out as they are also very important to analyze crypto market.
Greetings everyone and hope you had a pleasant day. I will be sharing the little knowledge I have on introduction to charts, types of charts for newbies who are picking up into the Crypto world gradually.
And a few frequently occurring chart patterns I’m sure most of us have some form of encounter with charts but I will start with the basics first for those of us new to trading.
Like the word says charts simply give a visual representation of the market movements in currencies. Some form of summary I would say. Let’s take Bittrex platform for example. When you look at the page you see the figures changing constantly. This is the same data that gets represented on the charts. There are three types of popular charts:
1. Candle stick
2. bar and
3. line.
These are the ones used in the currency markets.
Personally I use the candle stick and it works for me. I believe this is preference for most traders as well and i will show you why?
The candlestick chart sometimes called the Japanese candlestick has two parts and four points. All of these are important when determining when to enter or exit.
The two parts are the body and shadow,
the four points are:
Although the colors differ based on the platform you are using. Most platforms use green for increasing and red for price decreasing as you can see these are the points on the candle stick.
So this is just a summary of all those figures presented in an artistic way. Have a look on the image, as i continuing. Let me explain the four candlestick points before going into types of candlesticks
FOUR CANDLESTICK POINTS
➡️The open is the opening price of the currency for that time frame.
➡️The high is the highest point the price of the currency reached for that particular time frame.
➡️The low is the lowest point and
➡️The close is the price at which the candle stick closes for that time frame.
Let me explain the term "TIME FRAME".
Candlesticks represent time frames. E.g. one candle
can represent 1 day, 4 hours, 1 hour etc.
Let’s take one (1) hour time frame for example since we are mostly day traders here. These four points would show the activity for a particular hour for that coin.
CANDLESTICK PATTERNS
So there are candlestick patterns and there are chart patterns. Multiple number of candlesticks come together and form chart patterns and these are strong tools in predicting movements ahead of the markets. They show what can be said as the "Body language" of the markets.
Bullish candle signal that the price is going higher and Bearish candles signal that the price is going lower Please look at the image carefully, these candle are called a HAMMER The bearish one is an inverted hammer for the bullish hammer.
You look for it when prices are coming down. For the bearish hammer you look for it when prices are going up When prices are going up the hammer gets upside down. Don’t worry when i explain trends this will be a piece of cake. Just know how they look for now Don’t worry about the terms bullish and bearish So here is another image
These are more patterns and I will explain each one in detail
No need to memorised them. You can keep it in your gallery and be looking at them as you view the charts. One important thing to note is that all of these candlesticks give an important piece of information at the right points on the chart.
I will take the most common ones let’s start with Doji.
The doji should not be used alone to make a decision. It should be used together with other candlestick patterns.
It shows that there is indecision in the market. It is neither closing up nor down and it can go in any direction as you can see it is neither green nor red. The same goes for its other variants as well.
The next one is the bullish engulfing. This shows you that those pushing prices up are winning the battle against those pulling it down. In lay man’s terms, this is a good indication that prices will go up or at least halt momentarily when seen at strong support levels.
This one on the other hand is the bearish engulfing. Shows those pushing prices down are winning the battle.I hope someone is getting the knowledge bit by bit don't rush reading it. I will not treat all candles but the common ones that i have seen to be more reliable. The next one is the morning star.
This also shows prices will likely go up or halt momentarily like the bullish engulfing. When seen at strong support levels it also signals a move up.
we have the evening star which when seen at strong resistance levels signals a move down. As you can see in both the morning and evening stars i put RT there which means Railway tracks.
A lot of times they appear without the small candle between them and appear like railway tracks which makes them easier to identify. Hammer, inverted hammer, doijs, bearish and bullish engulfing, morning and evening stars Next I will show you some charts where they appeared and were useful.
If you zoom into the image you will see an inverted hammer after the move up.
This is btc/usdt
You can all look at it in your respective tabtraders App
All the patterns are appearing where the chart makes a turn around. It is important to note, they will not be there every time all the time. But when you see the ones you know to be reliable you know there is an opportunity, these are candlestick patterns. They are just one part of the puzzle you need to consider before placing a trade.
And a few frequently occurring chart patterns I’m sure most of us have some form of encounter with charts but I will start with the basics first for those of us new to trading.
Like the word says charts simply give a visual representation of the market movements in currencies. Some form of summary I would say. Let’s take Bittrex platform for example. When you look at the page you see the figures changing constantly. This is the same data that gets represented on the charts. There are three types of popular charts:
1. Candle stick
2. bar and
3. line.
These are the ones used in the currency markets.
Personally I use the candle stick and it works for me. I believe this is preference for most traders as well and i will show you why?
The candlestick chart sometimes called the Japanese candlestick has two parts and four points. All of these are important when determining when to enter or exit.
The two parts are the body and shadow,
the four points are:
- the open
- the close
- the high
- the low
Although the colors differ based on the platform you are using. Most platforms use green for increasing and red for price decreasing as you can see these are the points on the candle stick.
So this is just a summary of all those figures presented in an artistic way. Have a look on the image, as i continuing. Let me explain the four candlestick points before going into types of candlesticks
FOUR CANDLESTICK POINTS
➡️The open is the opening price of the currency for that time frame.
➡️The high is the highest point the price of the currency reached for that particular time frame.
➡️The low is the lowest point and
➡️The close is the price at which the candle stick closes for that time frame.
Let me explain the term "TIME FRAME".
Candlesticks represent time frames. E.g. one candle
can represent 1 day, 4 hours, 1 hour etc.
Let’s take one (1) hour time frame for example since we are mostly day traders here. These four points would show the activity for a particular hour for that coin.
CANDLESTICK PATTERNS
So there are candlestick patterns and there are chart patterns. Multiple number of candlesticks come together and form chart patterns and these are strong tools in predicting movements ahead of the markets. They show what can be said as the "Body language" of the markets.
Bullish candle signal that the price is going higher and Bearish candles signal that the price is going lower Please look at the image carefully, these candle are called a HAMMER The bearish one is an inverted hammer for the bullish hammer.
You look for it when prices are coming down. For the bearish hammer you look for it when prices are going up When prices are going up the hammer gets upside down. Don’t worry when i explain trends this will be a piece of cake. Just know how they look for now Don’t worry about the terms bullish and bearish So here is another image
These are more patterns and I will explain each one in detail
No need to memorised them. You can keep it in your gallery and be looking at them as you view the charts. One important thing to note is that all of these candlesticks give an important piece of information at the right points on the chart.
I will take the most common ones let’s start with Doji.
The doji should not be used alone to make a decision. It should be used together with other candlestick patterns.
It shows that there is indecision in the market. It is neither closing up nor down and it can go in any direction as you can see it is neither green nor red. The same goes for its other variants as well.
The next one is the bullish engulfing. This shows you that those pushing prices up are winning the battle against those pulling it down. In lay man’s terms, this is a good indication that prices will go up or at least halt momentarily when seen at strong support levels.
This one on the other hand is the bearish engulfing. Shows those pushing prices down are winning the battle.I hope someone is getting the knowledge bit by bit don't rush reading it. I will not treat all candles but the common ones that i have seen to be more reliable. The next one is the morning star.
This also shows prices will likely go up or halt momentarily like the bullish engulfing. When seen at strong support levels it also signals a move up.
we have the evening star which when seen at strong resistance levels signals a move down. As you can see in both the morning and evening stars i put RT there which means Railway tracks.
A lot of times they appear without the small candle between them and appear like railway tracks which makes them easier to identify. Hammer, inverted hammer, doijs, bearish and bullish engulfing, morning and evening stars Next I will show you some charts where they appeared and were useful.
If you zoom into the image you will see an inverted hammer after the move up.
This is btc/usdt
You can all look at it in your respective tabtraders App
All the patterns are appearing where the chart makes a turn around. It is important to note, they will not be there every time all the time. But when you see the ones you know to be reliable you know there is an opportunity, these are candlestick patterns. They are just one part of the puzzle you need to consider before placing a trade.
Quote
Keep learning the basics definitely you will get there as a pro trader. All the best
Jump to: