Steemit Crypto Academy Season 4 Beginner's Course - Task 10: Candlestick Patterns.
Introduction
Greetings to all, I hope you're doing well? It's another lovely day, and today I attended a lecture by one of the best professors, @reminiscence01, who spoke on Candlestick Patterns and then gave us a homework assignment on the subject. In today's blog, I'll respond to the first question.
1a) Explain the Japanese candlestick chart? (Original screenshot required).
b) In your own words, explain why the Japanese Candlestick chart is the most used in the financial market.
c) Describe a bullish and a bearish candle. Also, explain its anatomy. (Original screenshot required)
EXPLAIN THE JAPANESE CANDLESTICK CHART?
1a) Explain The Japanese Candle Stick Chart(Original Screenshot Required)
b) In Your Own Words Explain Why The Japanese Candle Stick Chart Is The Most Used In The Financial Market
c) Describe A Bullish And A Bearish Candle. Also, Explain It's Anatomy (Original Screenshot Required)
It is with great joy that i am composing my task 10 post on the beginner's course, having gone through the homework post and based on my understanding thereof i make my homework task with pleasure for having the opportunity to be here. Let's dive right into it
The Japanese Candle Stick
The japanese candle stick presents a graphical representation of the price of a commodity or asset in the financial market.
The japanese candle stick reflect the impact of the investors emotion on the financial market and this candle stick is often used by technical analyst to determine when to enter or exit a position or trade. This candle stick chart is widely been used by traders
The candle stick charting is based on a technique developed in japan in the 1700's for tracking the price of rice by Munehisa Homma based on how he understands the law of demand and supply, how prices changes and it's effect on the market this lead to the sucessuful formation of this candle stick chart.
The candle stick chart is also used in trading of Crypto derivatives and a powerful trading indicator that helps traders analyze the price movement of an asset maybe in the immediate short term or otherwise. For technical analyst this chart is important to them to ensure that their technical analysis is superb and perfect
- CLOSE: This is the final price of the asset candle.
IN YOUR OWN WORDS, EXPLAIN WHY THE JAPANESE CANDLESTICK CHART IS THE MOST USED IN THE FINANCIAL MARKET
BULLISH CANDLESTICKS
It's Often denoted by a red candle depending on how we set the color format, it's the opposite of a bullish candle, it's movement of price from an upward trend to a downward one. We say a candle stick is bearish when the opening price is higher than the closing price on a particular time frame.
It's often a bullish price reversal that often leads to a bearish 🐻 candle and vice versa
BEARISH CANDLESTICK
We have two major candle stick which denotes the trend a market is in which traders could always take advantage of either to short or long the market depending on the time frames.
We say a candle stick is a bullish one if the closing price of a derivative is higher than the opening price on a particular time frame as the case maybe. It often involve going from a lower trend to a higher one and when we see such candle stick we call it bullish often denoted by a green colour depending on how we set it.
Cc: @reminiscence01