📊 What is a Candlestick and why should every crypto trader understand it?
In the world of technical analysis, candlestick charts are an extremely important tool for reading market sentiment. Each candlestick represents price movement within a specific time frame, including the opening price, closing price, highest price, and lowest price.
When you see a long green candlestick, it indicates that the buyers are strongly in control. Conversely, a long red candlestick warns that the sellers are dominating the game. Candlestick patterns like Doji, Hammer, or Engulfing can signal an impending reversal, helping you catch waves or avoid getting 'caught at the top'.
Understanding candlesticks is like reading the emotions of the crowd – something that is extremely necessary in the highly volatile crypto market.
