#CryptoCharts101

CryptoCharts101

📈 #CryptoCharts101 | How to read and understand the chart in simple steps — on the Binance platform

1. **🕯️ Candlesticks:**

Each candle represents the open, close, high, and low prices over a specific period.

Green (or white): Close higher than open = Uptrend (+). Red (or black): Close lower = Downtrend (−).

2. **Understanding the candle structure:**

Body: Reflects the difference between open and close (strength of price movement).

Wicks: Represent the highest and lowest prices during the period;

Long wick above body = Potential sell at price peak,

Long wick below body = Strong support and high buying.

3. **Famous Patterns:**

Reversal:

Such as engulfing (Bullish/Bearish Engulfing) and Harami,

- The triple Morning Star pattern: Long bearish candle → Small candle → Strong bullish candle → Uptrend signal.

**Reliability of strong candles (Marubozu):**

Candle with no wicks reflects clear buying or selling pressure.

Doji:

Candle with a very small body reflects a state of indecision between buyers and sellers; if it appears within a trend, it indicates a potential reversal signal.