Steemit Crypto Academy Season 4 Beginners' course - Homework Post for Task 10 : Candlestick Patterns] | by @chairulrizalx

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1a) Explain the Japanese candlestick chart? (Original screenshot required). 1b) In your own words, explain why the Japanese Candlestick chart is the most used in the financial market. 1c) Describe a bullish and a bearish candle. Also, explain its anatomy. (Original screenshot required)

Hello Everyone

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Season 4 of Steemit Crypto Academy has arrived at Week 6, and on this occasion, I will complete an assignment for Beginners Level Introductory Fixed Course at the Crypto Academy. In this post, I will complete Task 10 which is discussed Candlestick Patterns - Steemit Crypto Academy Season 4 Beginners' course - Task 10: Candlestick Patterns mentored by Professor @reminiscence01.

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(1a). Explain the Japanese candlestick chart ? (Original screenshot required).

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^{Screenshot From Bittrex Exchange source} Japanese Candlestick is a chart that is very well known among traders. It was created by a Japanese named Munehisa Homma who was considered the "god of trading" in the 1724-1803. The analysis system used by the chart can be more detailed just by using a few pieces of information. Using Japanese candlestick charts for trading is a surefire way to get more accurate information. Munehisa Homma can be classified as a contrarian trader. in his book, he writes how to take advantage of the psychological state of other market participants. it takes a position against the market when all market participants are bearish because there is a reason for the price to go up and vice versa. ^{My Screenshot From Bittrex Exchange source}
Candlestick will be red if the price on the chart closes below the opening price and it is said that the price of an asset is experiencing a decline "Bearish". The candlestick will be green if the price of the chart closes above the opening price or it can be said that the asset price is rising "Bullish". Two hundred years ago, if you look at Munehisa Homma, he did not use modern tools like today's traders, only used market price movements in the form of candlesticks and became a very successful person in his generation.

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(2a). In your own words, explain why the Japanese Candlestick chart is the most used in the financial market.

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This Japanese candlestick was originally only used by Munehisa Homma to analyze the rice sales market, which at that time there was no modern analysis like today's traders do. And at this time Japanese candlesticks are widely used by stock and digital asset traders. The reason why most traders choose to use Japanese Candlesticks in the financial market is that the price action on the candlestick is basic to be used as an indicator in predicting price changes which are considered effective enough to provide signals that will occur during trading.

^{Screenshot From Bittrex Exchange source} This makes Japanese Candlesticks an important element for traders because these charts can help them make decisions to buy or sell assets based on price movements. However, it is important to understand that there are other supporting factors to consider when using Japanese Candlesticks, such as market fundamental analysis, reading the overall market trend movement through various sources such as related headlines and the timeframe we use.

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(3a). Describe a bullish and a bearish candle. Also, explain its anatomy. (Original screenshot required)

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^{Screenshot From Poloniex Exchange source}

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Bullish

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Bullish means that the market conditions for stocks and digital assets are good and asset prices will increase, besides that the term bullish is used to predict prices that will rise based on uptrend market conditions. Demand and supply also influence market situations which will later determine whether there will be Bullish or not, bullish is a positive thing that is awaited - later by traders who expect a profit.

The image below is an example of a bullish signal that gives the market a green signal.

^{My Screenshot From Bittrex Exchange source}

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(open)
As an indicator of the initial price or purchase of an asset within a certain period.

(closed)
As an indicator of the final price or purchase of assets within a certain period.

(high)
The highest price of an asset in a certain time.

(low)
The minimum or lowest price of an asset within a certain period of time.

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Bearish

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Bearish terms in stocks and digital assets are market conditions that are declining or weakening caused by the price of digital assets or stocks falling overall. This bearish condition is used by investors to predict a stock price will move down and prepare an analysis to avoid losing, this bearish signal gives a red color as a sign that the market is in a downtrend.

^{Screenshot From Poloniex Exchange source} Investors or traders assume that when they see bearish conditions as a negative thing in the world of stocks and digital assets because when bears are going on, the market price is experiencing a decline which results in the loss of traders' profits.

The image below is an example of a bearish signal that gives the market a red signal.

^{My Screenshot From Bittrex Exchange source}

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(open)
As an indicator of the initial price or purchase of an asset within a certain time.

(closed)
As an indicator of the final price or purchase of assets within a certain time.

(high)
The highest price of an asset in a certain period.

(low)
The minimum or lowest price of an asset within a certain period.

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Conclusion

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In this assignment, I learned a lot about the Japanese Candlestick for traders, especially for beginners. After understanding Japanese candlesticks and charts, it can be concluded that it is important to learn chart recognition for beginners in the trading world because it will be difficult if we do not have basic knowledge of these charts. This lesson also trains how to learn to analyze a piece of information or data obtained so that it can be developed again.

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Thank You

cc Professor : @reminiscence01 @dilchamo @nane15

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