Want to trade smarter, not just harder? ๐ Understanding candlestick charts and indicators is essential for any serious trader. Letโs break it down:
๐ฏ๏ธ What Are Candlestick Charts?
A candlestick shows the price movement of an asset within a specific time frame.
Each candle has:
Open: Where the price started
Close: Where it ended
High & Low: Peaks and valleys within the timeframe
Body: Price difference between open & close
Wicks: Spikes above or below the body
๐ฉ Green Candle = Price went up
๐ฅ Red Candle = Price went down
๐งช 3 Simple Market Indicators for Beginners
1๏ธโฃ Moving Average (MA)
Shows the average price over a period (e.g., 50 days).
โ Use it to see trends.
2๏ธโฃ RSI (Relative Strength Index)
Ranges from 0โ100.
๐ป RSI > 70 = Overbought
๐บ RSI < 30 = Oversold
Perfect for spotting reversals.
3๏ธโฃ MACD (Moving Average Convergence Divergence)
Shows momentum & trend direction.
๐ When MACD crosses above the signal line = potential buy
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๐ฏ Practice Task:
โ Open any BTC/USDT pair on Binance
โ Switch to the 1-hour or 4-hour chart
โ Identify 3 candles and check if they were bullish or bearish
โ Add RSI indicator and observe current market strength
๐ Next Up: Part 4 โ How to Use Binance Futures (Safely!) โ ๏ธ
#BinanceAlphaAlert #MarketPullback