#CryptoCharts101 🏁 The beginning of the journey: Basics of charts

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

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

Candle patterns: the market's hidden language

Over time, traders learned recurring patterns in candle 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, its body is small and its wick is long, heralding the birth of a new rise.

Hanging Man: stands at the peak of an upward trend, indicating weakness in buyers and possibly the beginning of a reversal.

Engulfing: a strong candle that engulfs the previous one, announcing the dominance of one side.

Morning/Evening Star: triple patterns that herald a change in direction, combining hesitation and then resolution.