REPOST::CryptoAcademy/season3/week2-Homework post for prof @reminiscence01

My name is @joelmaxwell and I thank prof @reminiscence01 for the wonderful lecture

EXPLAIN THE JAPANESE CANDLESTICK CHART(CHART SCREENSHOT REQUIRED)

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The Japanese candlestick chart ,from the name it was developed in Japan by a Japanese rice trader by name Munchisa Homma,

The Japanese candlestick chart is one of the most commonest and most used chart,it is a tool that is changeable by this it can be used with other tool technically to help in improving the trader to ability in analyzing the market successfully.

It is also used in the market to describe the movement of the price of coin(cryptocurrency).

We also have the shadow part and real body in the Japanese candlestick

The shadow
This is all about when the price in the market is unsettled and the will be a struggling between the buyer and seller

The real body
This has to do with a particular location where the price has moved in a specific period of time.

The space between the opening price and the closing price indicate the candlestick momentum.

The candlestick is normally identify with 2 colors the green representing increase in price and red representing decrease in price.

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It has four dimensions of price in the period of trading which are the

• opening price- when the starting of price movement in the market

• high price- highest price in the market

• closing price -when the price stop movement

• low price-last price recorded in the market

It helps in giving traders a very important knowledge about the movement of price at any point in time and this help the trader to know when to improve in the trading

DESCRIBE ANY OTHER 2 TYPES OF CHART(SCREENSHOT REQUIRED)

We have so many types of chart but i will base on line and bar chart

line chart

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the dialy change in price,it also helps the trader in the market by giving them a clear foresight of where the price of currency can move to in a given period of time because it shows the trader the closing price.

It is also preferable for beginners because of it simplicity

Bar chart

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The bar chart is a chart that consists of more price bar and each of the bars helps in the illustrations of assets and currency over a given period of time.

The bars in the bar chart also shows our dimensions which are the open,high,low and closing price can also be adjusted to show only three dimensions which will be high,low and closing

The bar chart can also be color coded by this if it is closed above the open it will be black or green but of ot is close below the open it is red or white.

In the bar chart,the bar that is vertically long indicates that there was a big difference in price between the high and low period and during this period,we have a high rate of volatility but when it is vertically small bar it indicates that there was a small difference in price and we have low volatility during this period.

The line and bar chart show same information but the virtual representation block is different.

IN YOUR OWN WORDS,EXPLAIN WHY THE JAPANESE CANDLESTICK CHART IS MOSTLY USED BY TRADERS

• EASY UNDERSTANDING

The Japanese candlestick chart is mostly used by the traders because it is being understood and can be interpreted easily by the traders.

• DECISION MAKING

The chart gives accurate and complete movement in the price which will also aid in enabling the trader makes or take decision

• TREND IN PRICES

The chart shows the trends in price that is the uptrend which is when the price is increasing and the downtrend which is when the price is decreasing

• assets movement

The chart aid in knowing the movement of assets easily at a given point in time,the uptrend and the downtrend movement

• easy identification

Through the color such as the green(uptrend) and the red(downtrend) it aid the trader identify easily the movement of price when it is high(uptrend) green color and when it is low (downtrend) reds color

DESCRIBE A BULLISH CANDLE AND BEARISH CANDLE IDENTIFYING THE ANATOMY (SCREENSHOT REQUIRED)

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The anatomy of bullish and bearish

Bullish and bearish are both found in the Japanese candlestick,the also have tge same cAndlestick shape but the perform different functions

• The bullish; mostly green in color sometimes black signify an uptrend in the market that is an increase in the price of assets and commodities unlike

• The bearish; mostly red in color sometimes white signify a downtrend in the market that is decrease in the price of assets and commodities

The both have four dimensions which are

1)open- when the starting of price movement in the market

2)high- highest price in the market (uptrend)

3)close- when the price stop moving in the market

4)low- last price recorded in the market before it start rising again (downtrend

The bullish candlestick

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The bullish candle mostly green in colour shows an uptrend or an increased of price in the market

It also help in giving the trader information or notification about when the market is about entering an uptrend phase,during this period of time the investors tends to sell most of their assets in he aim of making profit

The upward price movement in bullish candle in a specific period is being shown when the closing price settle above the opening price

The bullish is characterized by four dimensions

• The high

This is when we have the highest price of an asset which it can be marketed

• The close

This is when there is no movement of price in the market

• The open

This is when there is movement of price in the market

• The low

This is when we have the lowest price of assets in the market

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the bearish candle stick

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The bearish candlestick is normally red in color

The bearish is also the inverse of bullish,it shows the decrease in price of an asset and commodities

It also helps in giving trader information about when there will be a downtrend that is decrease in price

During the bearish the investor tends to buy asset at a lower price

It has four dimensions too

• the high
• the close
• the open
• the low
  Same as the bullish

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conclusion

Really an interesting lecture
I really learnt alot about the Japanese candlestick and the founder

I also have knowledge why Japanese candlestick is being preferred by traders because of it simplicity and is easy to understand through the color(red and green)

the interesting part which was the bullish and bearish which serves as an assistance to trader to know when there's an uptrend which is the increase in price of asset
In the market and during the uptrend the can sell their assets and make gain while the bearish is invest

Cc: prof @reminiscence01