#CryptoCharts101 Silent Reading in Market Movement

In the world of financial markets, stories are not told with words, but with candles. Silent candles stand on the lines of charts, telling tales of the struggle between buyers and sellers, whispering to the insightful analyst about what is to come, if they listen well.

The Beginning: Basics of Charts

Charts are the visual language of the markets, and the most famous among them are: the line chart, the bar chart, and then the most used and influential: the Japanese candlestick chart.

Each candle represents a time period, revealing four secrets: opening price, closing price, highest point, and lowest point. The magic lies in its shape, as its color (green/upward, or red/downward) tells you about the market's state, and its upper and lower wicks reveal hidden struggles that numbers alone do not show.

Candlestick Patterns: The Hidden Language of the Market

Over time, traders learned recurring patterns in candlestick behavior; shapes that repeat themselves as if they are the market's signatures on its decisions. Among the most notable of these patterns:

Hammer: Appears at the bottom of a downward trend, with a small body and a long wick, heralding the birth of a new upward movement.

Hanging Man: Stands at the top of an upward trend, indicating weakness among buyers and possibly the beginning of a reversal.

Engulfing: A strong candle that engulfs the previous one, announcing the superiority of one side.

Morning/Evening Star: Patterns