Steemit Crypto Academy Season 4 Beginners Course-Homework Post For Task 10 : Candlestick Patterns
Good day everyone,
I am very delighted to be part of this wonderful lecture and on the topic on Candlestick Patterns. I will like to thank our noble professor @reminiscence01 for that wonderful lecture. I really enjoyed and learnt a lot so am kindly here to present to you my work.
Explain the Japanese candlestick chart? (Original screenshot required). In your own words, explain why the Japanese Candlestick chart is the most used in the financial market.
Describe a bullish and and bearish candle. Also, explain it’s a promo.(Original screenshots required)
WHAT IS JAPANESE CANDLESTICK CHART?
The Japanese candlestick chart is simply a chart that was brought up by a great Japanese trader known as Munehisa Homma. This trader was in in buying and selling of rice in the market because Homma got to know that the value for rice within other traders in the market was very high.
After finding out that, he continued to supply more rice since the demand was very high in the market.
The Japanese candlestick chart we talking about is an instrument which is more utilized by traders for their technical examination.Prices and amount of cryptocurrencies are been assess and examine by the chart. The chart also shows the increment and decrement in prices if only you study it well and get to know the color difference because that’s the only way you can use to know price movement.
Most traders in the market finds it easy to determine to know price movement with the chart. Also, the chart makes those trading to conclude as to what to invest in for knowing how the price varies.
Demand and supply is usually taken place by the Japanese candlestick chart and price movement are visually displayed well and accurate.
Below is a screenshot of the Japanese candlestick chart from the trading view platform.
IN YOUR OWN WORDS, EXPLAIN WHY THE JAPANESE CANDLESTICK CHART IS THE MOST USED IN THE FINANCIAL MARKET.
As we all know the Japanese candlestick chart is a very good platform and every trader will wish to to use. There are a lot of advantages using this chart and also some importance. Below are some of the reasons why it is used most in the financial market:
1.The Japanese candlestick chart is a very clear platform that makes one know all the four main price point involved, that is the low , high, open and close when trading in the market to make analysis very easy.
2.The Japanese candlestick chart also shows the present situation in which price moves of a particular asset. As I explain earlier it appears in colors for you to know weather the price of that asset is good or bad. This enables traders to choose the best for themselves.
3.How you feel is always what makes you trade in the market and with the Japanese candlestick chart it can help you get to know that.
4.The increment and decrement of a particular asset is always shown on the candlestick chart and this can vividly let traders know the best asset to trade with.
DESCRIBE A BULLISH AND A BEARISH CANDLE. ALSO, EXPLAIN ITS ANOTOMY. (Original screenshot required)
A bullish candlestick is an instrument use to examine how powerful the movement is and it is also used in addition up all volume indicators.Example is this indicator is Relative Strength Index. Also, a bullish candle pattern helps investors or those who trade know the exact time a particular asset will increase or either decrease.
Traders and investors also get to know as to whether those buying will take over the prices in the market or not using those patterns. Price of an asset can even rise a certain level using the patterns.
Below is a clear screenshot of the bullish candlestick pattern from trading view.
A bearish candle is also an instrument use to make buyers as well as sellers to know that since prices has increased, it will be decreased as soon as possible.
With this pattern, it can make the price of a particular asset to decrease continuously. This pattern we talking about can also let investors to know that the sellers in the market are taking over the price of an asset in the market.
Below is a clear screenshot of the bearish candlestick pattern from trading view.
As it is said earlier on, the bullish and the bearish candle appears to have the same features. Some of the features are : low, high, open and close. Below is a clear explanation of each of the parts.
1.Low : With this part it makes you know the lowest price of a particular asset within a particular time.
2.High : With this part it makes you know the highest price of a particular asset within a particular time.
3.Open : With this part it makes one know how the price of an asset moves. It also keeps record of a particular coin within that particular time.
4.Close : With this part it makes you know the end price of a particular asset within that particular time.
Candlestick patterns has really been helpful to traders in the market within the world. Am saying this because it makes traders know the present and future state of the market and since it was brought into existence traders have been able to make right decisions before trading in an asset.
Thank you very much professor @reminiscence01 for that wonderful lecture and May the good be with us and bless us all.