Crypto Academy Week 2 Homework Post for [@stream4u]
- What a Candle Chart
Candlestick charts are employed by traders to see doable value movement supported by past patterns. Candlesticks are helpful once commerce as they show four value points (open, close, high, and low) throughout the amount of your time the merchandiser specifies.
- Explain what is the meaning of the Green and Red candle and how to read the Green and Red candle
Candlestick stands for the bar that you find on the trading chart. A green candlestick means the gap price thereon day was not up to the price that day (i.e. the value affected up throughout the day). A red candlestick means the gap price was over the price that day (i.e. the value affected down throughout the day).
For example, if the worth all over above the previous day, the amount bar is going to be green. However on a constant day, if the stock enraptured lower from the gap value, the candlestick would be colored red.
Colors are helpful to assist convey further which means in candlestick charts. Knowing and understanding every color with the different elements of the candlestick chart. This can assist you to interpret them, which means quicker and acquire additional out of the chart.
- Explain with Candle Chart, what are the time frames available that we can set into the chart, and why it needs to change the candle time frame?
On the chart, you'll set completely different time frames that you simply have an interest in. For the Poloniex chart, I principally concentrate on the 3-days charts. I don't know so much but I'm getting to understand more now. You'll also make use of a 6-hour, daily, 3-days, weekly chart once shaping the long trend.
As you'll see on the different charts and timeframes. And track a 6-hour chart once shaping the immediate-short trend.
Intraday traders, will enter and exit the market constant day, pay additional attention to shorter timeframes like the hourly and 6-hour charts for entry signals, and also the daily chart for the broader trend
- In trading or investing in assets, what is the importance of Support and Resistance, explain how they work?
You can establish support and resistance levels by learning a chart. seek for a series of low points wherever a stock falls to the current level, then again falls no any. This is a support level. When you find that a price rises to a certain high, but no higher, you have found a resistance level.
For me, I will look to sell when the price touches the resistance line and buy when the price touches the support line. From the chart, this is the time to invest in STEEM. AS of now, I think it the right moment to place a buy order.
Thanks, @stream4u for allowing me to understand some aspects of the candlestick chart.