The candlestick can be considered a powerful and at the same time easy-to-use tool used by traders to predict the direction of the market, and market sentiment, and using it does not necessarily require the trader to have any expertise. This guide will take you through the details of reading these charts, identifying patterns, and then making intelligent trading choices.

What Is the Purpose of Candlestick Charts to Bitcoin?

Candlestick charts give an instant view of the price dynamics of a selected period, the time represented horizontally, and the price vertically. This is unlike line or bar graphs which give a summary of the opening and the closing price, the highest and lowest price in a time frame, and the market mood (bullish or bearish).

This makes them very appropriate with regard to spotting trends, as well as spotting trading opportunities, particularly for beginners in trading Bitcoin.

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