Thank you @reminiscence01 for the lesson and Home Work Task. Below are the attempts:

Charts

In cryptocurrency, there are various technical tools used by traders and crypto enthusiasts to study and analyze market direction, every cryptocurrency user would have heard or seen a chart, you would have seen a picture of a zigzag line or colour candle like line moving up and down sideways.

These lines might look irrelevant for non crypto users or a novice but these lines are very important in decision making process for crypto enthusiasts and traders.

What is a chart?

A chart in cryptocurrency Is a graphical presentation of relevant data in forms of line, symbol, diagram, graphs etc, plotted in a pattern to show market movements and trend. It is a visual tool that shows price movement of a cryptocurrency or crypto pair.

Chart is very important in cryptocurrency because technical analysis are useless without charts because they are plotted on chart and also charts are used to identify market trends so you can know when to buy, sell or hodl.

There are 3 major types of charts used in cryptocurrency and they are : candlestick, line and bar. We'll be focus on candlestick chart.

Candlestick also referred to as the Japanese candlestick is a type of price chart that shows the high, low, opening and closing price points of a cryptocurrency or asset with specific period of time, this movement are indicated by bars referred to as candlestick.

Candlestick is very important for technical analysis and technical cryptocurrency traders, the charts makes it easy to analyze price action and also market direction.

Candlestick was originally invented by a Japanese rice trader known as Munehisa Homma, munehisa developed the candlestick to understand price movement in the rice market and makes decision base on the market trend, the candlesticks graphically display the form of price action by using different colors to indicate differences in price.

This made him a successful trader and he dominated the rice market. Due to the effectiveness of Japanese candlesticks, an America technical analyst known as Steve nison studied the reliability of this chart and attest to its effectiveness so he introduced it to Europe so that is how the Japanese candlestick chart became a popular tool used in the financial market.

Japanese Candlesticks is the most loved chart by technical traders because it provides more detailed and precise information about market movements, compared to other charts. It gives graphical representation of the demand and supply within the period of price action.

A candlestick contains a central portion that shows the distance between the open and the close price of a cryptocurrency. There are 3 elements that make up a candlestick, the wick/shadow, the body and the colour.

Source

The upper part is called wick or shadow and it represents the highest and the lowest price reached during the timeframe of the chart. For example, if you're looking at the 1hr timeframe of btc, the stick will indicate the highest and lowest price reached within the 1hr period.

The middle part is the body and it represents the open ans close price of the asset within the timeframe.

The color is another important element of candlestick, the color indicates the market trend whether it is bullish or bearish, most charting sites use green and red colour to indicate the trend, if the color is green that means it is bullish while if it is red then it is a bearish trend.

Two Types of chart

Line charts

A line chart is a visual representation of a cryptocurrency or financial asset price movements using a continuous line that displays a series of data points known as markers with specified period of time.

Line charts are very popular in financial markets as it showcase closing price history an an asset over the given timeframe also, it Is easy to understand due to it simplicity, technical traders can easily identify the support and resistance levels and it is the best chart crypto novice can use to learn market movement before trying the complex one like candlestick.

Line chart is good but it doesn't not provides much information about price, it only use the closing price and ignore the opening,high and low prices of the asset. This can affect trading strategy because the trader the trader wouldn't be fully aware of price actions.

Bar charts

Bar charts is very popular chart, even primary school kids are associated with it because it's applicable to almost everything. In cryptocurrency chart, bar chart is almost like the candle stick just that bars are used instead of candles, each bar illustrate the movement of a cryptocurrency price over a period of time. Each bars indicate all price information as the opening, closing, high and low price of the asset are reflected.

The bars are plotted on a chart, price Is plotted at the vertical axis, while the horizontal axis indicates timeframe. Just like candlestick, there are colors in bar chart also, green and red, when the closing price is higher than the opening price, the bar will be colored green because the price increased during the period but if the closing price is lower than the opening price, this indicate a drop in price during that period, so it is colored red.

This colors helps traders to easy identity market trend at a glance. Lastly you can plot other indicators like relative strength index, bollinger bands, etc on bar chart to have better understanding of market trends.

Why Traders prefer the Japanese candlestick chart

Every traders wants to makes profit so every available resources is directed and coordinated towards this motive, traders finds all tools that can help them achieve their motive and pick the best tool out of tools. So is candlestick chart, when talking about top chart widely use in cryptocurrency, you are referring to bar chart, line chart and candlestick chart, out of all these chart one is best among them and that's candlestick because of it features and versatility.

Traders prefer candlestick due to some reasons and some of those reason are :
Candlestick charts gives detail information of price movements in the market, information like open, close, high and low price within the timeframe. Traders look at price actions like the trend pattern whether it is bearish or bullish then they make trading decisions like entering or exiting the market or holding on to the asset.

Candlesticks charts are clear, easy to understand set of patterns and they're precise when predicting market trends. Even a novice who doesn't understand anything about chart can easily identify the fall and rise period through the color coding.

Red indicate danger so you can sense a fall in price and green indicate safe so you can know the price is increasing.
Candlestick chart can be combined with other technical indicators to make trading decisions, you can easily use other indicators like bollinger bands, relative strength index, moving average Convergence divergence,etc to predict market movement and also the volatility of an asset.

Candlestick chart is tested and trusted, Japanese candlestick has been in existence for more than 250 years, traders have been maximizing it benefits and making huge profits from it, the founder Homma Munehisa was the first to use it in rice trading and due to it success, it spread to the west through Steve nison and this chart is still used in financial market today.

Japanese candlesticks analysis

In the cryptocurrency world, there are powerful forces that are affecting the price movements of cryptocurrencies, the action of this forces leads to increase or reduction in price of a cryptocurrency. This forces are known as the bull and the bears, the bulls are the traders that are entering long positions by investing thereby increasing the price of the cryptocurrency while the bears are the traders who are selling the cryptocurrency thereby causing fall in price of the cryptocurrency. When the bulls are winning, the chart is considered bullish while if the bears are winning then it Is bearish.

Bullish candlestick

Bullish candlestick is a graphical price representation that shows increase in the price of a cryptocurrency. It informs traders that the market is about to enter an uptrend after a downtrend, this indicates that the bulls are winning the market again so there Is an increase in price, you can combine technical indicator like the relative strength index to confirm if the bullish trend will be for a long time or just for short period of time. In candlestick, when the opening price is lower than the closing price, there's an increase in price so there is a bullish candlestick.

Bearish candlestick

Bearish candlestick is a graphical price representation that shows decrease in the price of a cryptocurrency. The value of the cryptocurrency reduced during this period of time and it occurs when the opening price is above the closing price within the time frame. People are selling in bearish market so that indicate the bears are winning. You can also combine other technical analysis like moving average and RSI to determine how long the bearish trend will last.

Thank you for reading my post.

Cc: @steemcurator02