Steemit Crypto Academy Season 3 Week 4 - Beginners Course | Patrons of candles. @wenceslaowi

Great day all, @reminiscence01 has been showing us specialized examination for some time now and today he took us more profound into figuring out how to comprehend our graphs more, which would help us a ton in exchanging cause it's just when you get the message would you be able to exchange well and make benefits.

1-) In your own words, explain the psychology behind the formation of the following candlestick patterns.

• Bullish engulfing candle pattern
• Doji candlestick pattern
• The Hammer candlestick pattern
• The morning and evening star candle pattern.

Candle Patterns

Understanding the candlestick styles will provide us a extra funding possibility withinside the markets, they're a totally essential device that offers us terrific records approximately what can also additionally appear with the fee, know-how the way to examine those candlestick styles efficiently will assist us a lot. . This usually occurs withinside the charts, so we ought to be organized to apprehend all of the psychology of the candlestick styles and therefore we are able to lessen our hazard as an investor.

Bullish engulfing candle sample:

SCR.
The sample is made up of two candles, the frame of the second one candle absolutely envelops the preceding candle. This sample dictates a terrific sign due to the fact it's far displaying a number of weak spot withinside the dealers, for the reason that customers have been capable of win the conflict with the aid of using producing a number of buy extent, so the second one candle completely envelops the preceding candle, producing a probable trade in fashion. Buyers take manipulate and come to be elevating the fee.

The Hammer candlestick pattern

SCR.
One of the maximum essential styles while forming in regions of resistance and aid. This candle has an extended wick that shows a terrific rejection of the customers or dealers withinside the marketplace, considering that it is able to be shaped in each ways (bullish or bearish).
We have the inverted hammer that's while it's far shaped withinside the contrary way, the hole fee of the candle and the ultimate are nearly the identical in a bearish (promoting) way

Doji candlestick pattern:

SCR.
A very essential sample that generates a number of records, it's far in reality a candle of indecision withinside the marketplace, the fee opened and closed on the identical commencing fee. This shows that there's no controller at that point withinside the marketplace, nor have been the dealers capable of decrease the fee, nor have been the customers capable of improve it, so the fine issue for a critical investor to watch for the subsequent candle to have a higher affirmation of in which the marketplace can pass.

The evening star candlestick pattern:

SCR.
The morning famous person sample is a sturdy bearish reversal trade. It is likewise shaped with three candles, a totally sturdy bullish candle observed with the aid of using every other smaller candle with little bullish extent, indicating terrific weak spot withinside the marketplace and with a bearish candle that finally ends up absolutely enveloping the preceding one.
This sign is robust while it's far shaped in a resistance area, as it shows that the fee might be hitting a ceiling, producing a trade withinside the fashion of the bull marketplace going right into a bearish scenario.

The morning star candlestick pattern:

SCR.

The morning famous person sample is a sturdy bullish reversal trade. It is shaped with the aid of using three candles, a sturdy bearish observed with the aid of using every other candle a bit smaller with little extent to hold to decrease the marketplace after which a huge sturdy candle with a number of buy extent generated with the aid of using the bulls withinside the marketplace.
This sign may be very sturdy while it paperwork in a aid area, as it shows that the fee might be rebounding upwards because of a trade in fashion generated with the aid of using the customers, for the reason that preceding bearish candle confirmed a number of weak spot and ended up being engulfed. for a excessive extent bullish one.

1-) Identify these candlestick patterns listed in question one on any cryptocurrency pair chart and explain how the price reacted after the formation. (Screenshot of your own graph for this exercise)

Bullish engulfing candle pattern

PAR: Steem/ BTC
We can see how the fee got here in a micro downtrend, then it occupied a selection in which it become now no longer but determined in which the fee become going to pass, however the huge engulfing candle sample took place displaying terrific electricity withinside the customers after which the subsequent candle I come to be confirming the motion with the aid of using taking a bullish period.

Doji candlestick pattern

PAR: BTC / USD
The Doji candlestick did now no longer mark any trade in fashion, it become in reality a candle of indecision withinside the marketplace. The fee endured its identical path withinside the fashion that become occurring.

The Hammer candlestick pattern

PAR: BTC / USD
The marketplace fashion have been bearish, after falling for a great period, a hammer candle took place, which offers us a terrific purchase sign. After the candle left a huge lengthy wick ultimate at a bullish fee, the subsequent candle showed the pass following the uptrend path.

Inverted Hammer

PAR: BTC / USD
We can see how the fee got here in a bullish path, then the inverted Hammer candlestick sample emerged, indicating a terrific promoting sign withinside the marketplace.

The morning star candlestick pattern

PAR: BTC / USD
Here the upward reversal trade took place, the fee become in a downtrend, however started out to reveal a number of weak spot and after the morning famous person sample appeared, the fashion modified and started out its upward fashion.

The evening star candlestick pattern

PAR: BTC / USD
Clearly the bearish reversal trade took place, the fee become in an uptrend and after the night famous person candle sample become proven the fee started out to fall, converting the modern fashion to a bearish one.

2-) 2-) With a demo account, open a trade using any of the candlestick patterns on any cryptocurrency pair. You can use a lower time frame for this exercise (take a screenshot of your own graph for this exercise).

The Hammer candlestick pattern

I become running Cardano withinside the 1M season to make a short demo of the Demo. I were putting the Bollinger Bands indicator to provide me a higher technical evaluation and as soon as the Hammer Candlestick Pattern took place I become creating a purchase.

Once I marked the purchase at the Hammer Candle Pattern the fee gave me a affirmation with every other bullish candle, so the fee started out to upward push withinside the marketplace.

Conclusion

Candle styles are very essential for any investor withinside the marketplace due to the fact they offer us with a number of records. By know-how the psychology of every of those styles we are able to be capable of higher decide our motion in trading, we are able to be greater assured while shopping for and promoting with the aid of using running in a actual account.
In this magnificence we received a number of expertise approximately every of those actions withinside the markets, due to the fact those candle styles will usually be occurring and it's far vitally essential to recognise approximately every of those candle styles.