For cryptocurrency beginners, how to read the market trends using candlestick charts?
For those familiar with market sentiment, a glance at the cryptocurrency trend can help estimate price fluctuations, but for beginners in the crypto world, it is necessary to start from the basics.
The main components of a candlestick chart are two: bullish candlestick and bearish candlestick. In the cryptocurrency market, green represents bullish candlestick, and red represents bearish candlestick. Generally speaking, a bullish candlestick represents buying pressure, while a bearish candlestick represents selling pressure. The stronger side will show its corresponding candlestick in the chart.
Taking Dogecoin as an example, if the buying power is greater than the selling power, then the candlestick in the daily chart will be bullish (green candlestick). Conversely, if a bearish candlestick (red candlestick) appears, it indicates stronger selling pressure.
