[Patrones de velas.] - Temporada 5 de Steemit Crypto Academy - Publicación de tarea para la Tarea 10

in hive-108451 •  6 months ago 


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Greetings to the whole steemitcryptoacademy community, I have carefully read the lecture of Professor @reminiscence01 and I will make my contribution for this assignment.


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1) Explain the Japanese candlestick chart? (Original screenshot required).


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Japanese candlesticks were created in the country of Japan while trading rice munehisa homma in the 17th century, this is because traders through a patterns formed by the price of rice through a particular time season of rice sales. when munehisa looked at the psychology of the anatomy of the candles began to take profits by selling patterns of rice price, and realized that through the supply and demand of investors could psychologically set up a strategy that allowed him to earn a lot more money through the patterns that were formed in the Japanese candles.

Let's understand better the Japanese candlesticks there are two characteristic colors, in the most common case is green and red, which indicates bullish or bearish, in order to take a good reading we can see that the bullish always starts above the green color and the bearish red candle is born from top to bottom, both candlesticks have open points, closed points, lows and highs, have a real body must in account the upper shadow and lower shadow so we have to be very attentive to all these features that we mentioned above.

They are used in any Digital world to operate financial markets these are used to look at possible movement patterns and speculate the future market depending on the temporality and patterns that mark the Japanese candlesticks, remember that we have to analyze the market patterns and also the fundamental and psychological analysis to have a greater analysis to speculate the future market.


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2) In your own words, explain why the Japanese candlestick chart is the most widely used in the financial market.

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Japanese candlesticks dese the one that was described to determine higher profits with the rice market in Japan became very famous since then have not stopped using for its great effectiveness in the market, now with the advent of technology was implemented this method in the financial digital world both stock exchange, such as digital cryptocurrency markets etc. therefore here we can see very important information about the price of markets depending on the temporality , using a chart of temporalities we can identify patterns with indicators that are additional tools that tell us exactly where to trade the market and at what time to do it.

Japanese candlesticks are most commonly used in future price speculation using the annals of the past, i.e. taking into account the past time we will determine the future price at the appropriate time frame, we can make decisions to enter or exit a trade.

technical analysis is used to determine future operations with respect to the different elements of operations such as going long and short, by means of a determined temporality or time, short or long term, for example scalpong operations or trding in spot. (hodl)

The psychological factor is a very interesting strategy I would say that all trading is focused on the psychological part of investors, therefore we can visualize the market movement according to the psychological factors that some large corporations or whales, want us to believe. inexperienced traders always perform operations according to the decisions of the whales and not their own criteria. therefore end up having more losses than gains in the market we have to keep in mind that this is a fundamental part in the balance of winning or losing in the digital market.


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3) Describe a bullish and bearish candlestick. Also, explain its anatomy. (Original screenshot required)

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Bullish candlestick:

The bullish candle as you can see in the following image, is formed in a market or uptrend this we can notice by technical analysis, bullish candles are green this means that there are more buy orders than sell orders therefore the value of the asset rises and the candles indicate this positively, basically its structure and anatomy part through a variety of forms with certain characteristics that allow us to observe a possible formation of patterns, this allows us to perform through a technical analysis and observation of patterns an operation speculating the future of the asset, we can sell in spot or buy we can also go short or long bullish candles are always green with bullish directionality.


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Anatomy of the bullish candlestick:

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The birth of the bullish candle is from bottom to top, green in color and has open and closed points highs and lows are composed of a real body coast of upper and lower shadows in some cases, and this tells us that there are buying movements in the market rather than selling so you can see that there is a decrease of circulating assets in the ecosystem.

Opening price:

Depending on the temporality in which you see the market this usually varies, we can see that it is the point where the candle begins to grow.

Closing price:

closing price is when the candle is closing depending on the temporality example we are in temporality of 1h every hour means that a new candle will form,

Maximum point:

It is the maximum or highest point, this is recorded by the candle in formation this varies depending on the temporality that the market is seen.

Low point:

It is the lowest point recorded by the Japanese candlestick formation this varies depending on the seasonality in which you are trading it.

The shadow:

It is a fill line that is at the ends of the candle, its formation is transparent as the price reached the point and retreated therefore leaves as a thread as if it were a candle, hence the name "candle" to this is called shadow.

Real body:

the real body is the path that has relation to the point of creation through a given time parido, it can usually be obtained as bullish candles.

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Diseñado por mi en paint

Bearish candlestick:

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The bearish candles are those that are formed in red color from top to bottom create us patterns as oversold, or major correction after a massive purchase, this means that some investors are taking profits or simply out of operations for some reason, here indicate that there are a lot of sell orders more than buy orders, therefore the demand is less than the supply. you can perform a technical analysis and see the indicative and patterns to differentiate a correction to a change of trend therefore be able to enter or exit operations.


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Anatomy of a bearish candlestick:

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The bearish candles are born from top to bottom, Red color, this has open and closed points, highs and lows and is designed with a real body, sometimes has a shadows of up and down, the closing of the candles indicate the direction of market movement by technical analysis.

Opening price:

contrary to the bullish candlesticks or true bearish candlesticks usually grow at the top and close at the bottom, much will depend on the temporality that the operation is worked.

Closing Price:

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The closing price of the candle is always lower and allows us to know the structure of the candle that formation acquired and that the last point to be created of the candle.

Maximum Point:

It is the maximum or highest point, this is recorded by the candle in formation this varies depending on the seasonality that the market is seen.

Lowest Point:
It is the lowest point recorded by the Japanese candlestick formation this varies depending on the seasonality you are trading it.

The shadow:

It is a fill line that is at the ends of the candle, its formation is transparent as the price reached the point and retreated therefore leaves as a thread as if it were a candle, hence the name "candle" to this is called shadow.

Real body:

the real body is the path that has relation to the point of creation through a given time parido, it can be usually obtained as bullish candles.

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Diseñado por mi en paint


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Conclusion:

Culminating this research work we can say that the formations of the Japanese candlesticks are a great tool to determine patterns through some technical analysis and thus identify the next move remember the more you analyze and perform operations better they will do your technical annals we must consider a strategy to get more profits than losses in a given time and so our operations will be successful.

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