Meaning of candlestick colors in cryptocurrency exchanges.
In cryptocurrency exchanges, candlestick charts are a type of chart used to represent price trends. A candlestick consists of a vertical line segment and two horizontal lines. The vertical line segment represents the fluctuation range between the opening and closing prices, while the horizontal lines represent the highest and lowest prices, respectively.
Different price trends can be distinguished based on the color of the candlestick.
Green (or blue) candlestick: Indicates that the closing price is higher than the opening price, meaning the price has risen.
Red (or black) candlestick: Indicates that the closing price is lower than the opening price, meaning the price has fallen.
Doji candlestick: Indicates that the opening price and closing price are the same, meaning there is no significant price fluctuation.
Hammer candlestick: A candlestick with a long lower shadow, a short upper shadow, or no upper shadow, indicating that the price dropped significantly after opening but then recovered some ground.
Hanging man candlestick: A candlestick with a long upper shadow, a short lower shadow, or no lower shadow, indicating that the price surged significantly after opening but then fell back near the opening price.
These different candlestick colors reflect the price fluctuations within a specific time period, helping investors analyze price trends and predict future movements. For example, a series of green candlesticks indicates a bullish trend, while a series of red candlesticks indicates a bearish trend.
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