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Wilfred Victor
May 25, 2021
Understanding these charts is key to becoming the most well-rounded, successful trader that you can be.
Introduction
Understanding price actions starts with the understanding of entry-level Candlestick charts. A Candlestick chart forms the basis of technical analysis. Upon this knowledge, we can bring out important concepts like Support and Resistance, market trends, and price actions right from the chart.
What is a Candlestick Chart?
As the name implies, this is a price action chart that involves numerous candles, which shows what the market is saying at a particular period. Unlike the other tools that indicate price action, Candlestick is way more comprehensive as they give the Open, Close, High, and Low price at a given instance.
OHLC, as they are called, is not placed statically on the candle as the location of each of these indicators is determined by whether the market is a Bearish(Sellers) market or a Bullish (Buyers) market.
How Does It Work?
For example, in a bullish candle, the “High” is placed at the top of the upper wick(or shadow), indicating the extent of the price before sellers stepped in. The Closing price is typically above the opening price, and the low of the candle is at the tip of the lower wick shows buyers strength when sellers attempted to push the price lower.
The opening price is typically above the close price for a Bearish Candlestick, indicating a declining price action. The High and Low indicate the attempt of the buyers to change the direction of the market trend.
The candle’s body is the point between the opening and closing price, and they indicate the strength of the dominating actors in the present market.
The colors of the candles are not cast in stone as they can be changed to trader preference. It’s, however, usual to see green used for a bullish candle, while red for a bearish candle. Traders also use other colors, including purple and blue, black and white, ash and brown.
How It Relates to Time Frame
The candles are given per period, meaning each candle on a 4-hour time frame indicates the market action for 4 hours; by lowering or increasing the timeframes, traders can see the market on a Micro or Macro level.
For example, tweaking your timeframe into a 1hr TF will zoom in your chart to split a 4hrs chart into 1hr candle each, giving you much more specific details of the price action for 4hrs.
Changing the time frame to a much bigger time frame, e.g., monthly, is now what we call zooming out, giving traders a broader perspective of the market.
Heikin-Ashi Candlesticks
Heikin-Ashi Candlestick is the modified version of the Japanese Candlestick, which has been expanded above. It uses the same concepts as the Japanese; the difference is that in Heikin-Aishi, the Candles are modified to give the average price. The main goal is to smooth out price action and filter out market noise, as traders can easily spot trends with this Candlestick type.
Different Shapes of a Candlestick and What They Mean
Depending on where these different candles are placed in the chart, they can give traders insight into what may happen in the market. Here are three more different types of candlestick patterns and their respective qualities.
Doji Candlestick
The Doji is a single candle pattern and is neither bearish or bullish as Doji represents a state where the price closes precisely where it opened. For this reason, the Doji appears as a dash as it has no candle body.
Hammer Candlestick
Depending on where they are placed, hammer Candlestick may indicate trend reversals. This Candlestick pattern usually has a small body at the top or bottom with longer wicks at any of the two sides.
Hammer and Inverted Hammer: Same shapes appearing at the support region of a chart in a bearish trend indicating a bullish reversal incoming.
Hanging Man and Shooting Star: Same shapes as the Hammer and Inverted Hammer usually appear during a bull trend at the resistance areas in the chart, indicating an incoming reversal of the prevailing trend.
Engulfing Candle
This typically involves a random and a bigger candle engulfing the smaller candle. As with the Hammer family, this depends on the area of support to indicate a trend reversal.
Bearish Engulfing candlestick appears in support with a big red candlestick engulfing the smaller green candle. Bullish Engulfing candle doing the same at the support zone, indicating a bullish trend incoming.
What’s the Appeal?
At every point in time, traders can look at the chart, place the chart in a Candlestick pattern, and grab a feel/perceptive of how the market is doing per time. With consistency, mastery, and application, a trader can correctly time the market, get accurate entries, and exit by understanding price action via Candlestick formations.
Weaknesses
Candlesticks charts by themselves do not have a weakness. However, its weakness may come from the trader using it. For example, as with other technical indicators, Candlestick does not work in isolation. Even though the chart pattern tends to give an idea about the market per period, it works best with experienced minds that can extrapolate future trends as well as what is happening in the present.
A constant honing of the skills and mastering Candlestick will eliminate almost all possible weaknesses caused by human errors. This doesn’t mean traders will always make the right decision, but they will usually set themselves up for success if they master the method.
Concluding Thoughts
As we mentioned earlier, it requires a mastery of Candlestick charts in order to use them properly. The chart pattern is best used with the combination of other indicators and not by itself solely. Understanding the basics of support and resistance and applying risk management principles, including paper testing and backtesting the strategies, will hinge traders’ steps closer to better winning edges during trades.
This is a paid Ask Me Anything (AMA), BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement AMA for $2000 Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the AMA.
Overall it is vital to proceed with caution when purchasing tokens that have just been listed. For those who have not already read our articles on safety in the BSC it is crucial to reference the following items, HERE and HERE.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
Overall it is vital to proceed with caution when purchasing tokens that have just been listed. For those who have not already read our articles on safety in the BSC it is crucial to reference the following items, HERE and HERE.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2000. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2000. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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January 28, 2022
Socios.com Sues Argentine Football Federation Over Binance Deal
Web3 crypto competitors have finally come head-to-head after a year long expansion into worldwide sports.
Socios Sues AFA
As Binance announced its partnership with the Argentinian FA in the past week, the news was not met with plaudits by Socios. Socios has filed a complaint against the footballing organization.
Judge María José Gigy Traynor of the Argentinian National Commercial Court ordered the AFA to honor three contracts previously agreed with Socios. The contracts in question were acquired and reported on by Coindesk’s Andrés Engler on January 27. In a statement to CoinDesk, the AFA had recognized the injunction but underlined its intention to appeal.
The AFA then began picking up on its own frustrations claiming:
- The Argentina token was not sufficiently promoted
- Several issues in the use of images of the national team and league
Socios has refuted these claims, notifying CoinDesk that they have made all outstanding payments to the AFA and have no obligations for further payment. A likely instigator for the payment squabble may come from the broad market drawback which has also seen the AFA token plummet by over 50% since the summer, according to CoinMarketCap.
Many speculate that what has precipitated the recent partnership between the AFA and Binance is potentially a higher offer that was otherwise not matched by Socios. The AFA has refuted this assumption, but Binance will do well to let this dispute play out while they remain in the background.
Whether these speculations will be confirmed is another matter, as the courts proceed to examine contractual obligations and seek to determine who is in the wrong.
BSC News will be following closely as the story develops.
What is Socios.com
Socios.com is the official crypto wallet and trading platform for some of the biggest sports teams in the world. The site is an innovative fan engagement platform that was created for the Chiliz blockchain. The Socios platform provides the owners of the fan tokens with access to voting rights in polls, VIP rewards, exclusive club, and sponsor promotions, AR-enabled features, chat forums, games, and competitions. Socios.com aims to introduce millions of new fans from around the world to the benefits of Fan Tokens in 2022 with new innovations, features, and rewards to be added throughout the year.
Follow Socios:
January 28, 2022
Babylons NFT Teams with Jigen for Luxury Fashion NFTs
The partnership would see luxury fashion NFTs come to the Babylons NFT marketplace in the future.
Babylons Secures Partnership With Jigen
Leading game aggregator and Non-Fungible Token (NFT) marketplace on Binance Smart Chain (BSC), Babylons, has partnered with Jigen to bring luxury fashion NFTs to its users.
Jigen offers a multi-chain ecosystem, enabling Luxury NFTs interaction in secondary markets like Babylons. Both protocols would merge to build the hype of fashion and luxury in the NFT space. Babylons took to Twitter on January 27th to announce the partnership deal.
“Babylons new partnership with @jigenapp. Jigen is the first #NFT gateway for fashion and luxury items in the #Metaverse and #gaming ecosystem. Jigen is an all-in-one solution for brands to bridge their business into the #blockchain space,” Babylons tweeted.
With Jigen, NFT enthusiasts and business owners would display their fashion items to the metaverse and gaming ecosystem. The partnership would ensure that Jigen users display their wearables and trade them on the Babylons NFT marketplace. In addition, the Babylons community would have the license to purchase exclusive Luxury NFTs, adding more utility to the Babylons’ $BABI token.
What is Babylons?
Babylons is a community-governed NFT marketplace on Binance Smart Chain for creators, investors, users, and collectors. The platform has many unique features, including its low-cost minting, weekly rewards, and a Decentralized Autonomous Organization (DAO) governance that puts the power in the community’s hands.
Where to find Babylons:
Website | Twitter | Telegram | Medium
What is Jigen?
Jigen is an NFT gateway for Fashion and Luxury items in the metaverse and gaming ecosystem. The protocol focuses on a three-point plan to build its brand, offer exclusive NFT drops through its Launchpad, and create custom NFT works for companies and projects.
Learn more about Jigen through the following links:
Trading Toolkits: Overview of Candlestick Charts
Understanding these charts is key to becoming the most well-rounded, successful trader that you can be.
Introduction
Understanding price actions starts with the understanding of entry-level Candlestick charts. A Candlestick chart forms the basis of technical analysis. Upon this knowledge, we can bring out important concepts like Support and Resistance, market trends, and price actions right from the chart.
What is a Candlestick Chart?
As the name implies, this is a price action chart that involves numerous candles, which shows what the market is saying at a particular period. Unlike the other tools that indicate price action, Candlestick is way more comprehensive as they give the Open, Close, High, and Low price at a given instance.
OHLC, as they are called, is not placed statically on the candle as the location of each of these indicators is determined by whether the market is a Bearish(Sellers) market or a Bullish (Buyers) market.
How Does It Work?
For example, in a bullish candle, the “High” is placed at the top of the upper wick(or shadow), indicating the extent of the price before sellers stepped in. The Closing price is typically above the opening price, and the low of the candle is at the tip of the lower wick shows buyers strength when sellers attempted to push the price lower.
The opening price is typically above the close price for a Bearish Candlestick, indicating a declining price action. The High and Low indicate the attempt of the buyers to change the direction of the market trend.
The candle’s body is the point between the opening and closing price, and they indicate the strength of the dominating actors in the present market.
The colors of the candles are not cast in stone as they can be changed to trader preference. It’s, however, usual to see green used for a bullish candle, while red for a bearish candle. Traders also use other colors, including purple and blue, black and white, ash and brown.
How It Relates to Time Frame
The candles are given per period, meaning each candle on a 4-hour time frame indicates the market action for 4 hours; by lowering or increasing the timeframes, traders can see the market on a Micro or Macro level.
For example, tweaking your timeframe into a 1hr TF will zoom in your chart to split a 4hrs chart into 1hr candle each, giving you much more specific details of the price action for 4hrs.
Changing the time frame to a much bigger time frame, e.g., monthly, is now what we call zooming out, giving traders a broader perspective of the market.
Heikin-Ashi Candlesticks
Heikin-Ashi Candlestick is the modified version of the Japanese Candlestick, which has been expanded above. It uses the same concepts as the Japanese; the difference is that in Heikin-Aishi, the Candles are modified to give the average price. The main goal is to smooth out price action and filter out market noise, as traders can easily spot trends with this Candlestick type.
Different Shapes of a Candlestick and What They Mean
Depending on where these different candles are placed in the chart, they can give traders insight into what may happen in the market. Here are three more different types of candlestick patterns and their respective qualities.
Doji Candlestick
The Doji is a single candle pattern and is neither bearish or bullish as Doji represents a state where the price closes precisely where it opened. For this reason, the Doji appears as a dash as it has no candle body.
Hammer Candlestick
Depending on where they are placed, hammer Candlestick may indicate trend reversals. This Candlestick pattern usually has a small body at the top or bottom with longer wicks at any of the two sides.
Hammer and Inverted Hammer: Same shapes appearing at the support region of a chart in a bearish trend indicating a bullish reversal incoming.
Hanging Man and Shooting Star: Same shapes as the Hammer and Inverted Hammer usually appear during a bull trend at the resistance areas in the chart, indicating an incoming reversal of the prevailing trend.
Engulfing Candle
This typically involves a random and a bigger candle engulfing the smaller candle. As with the Hammer family, this depends on the area of support to indicate a trend reversal.
Bearish Engulfing candlestick appears in support with a big red candlestick engulfing the smaller green candle. Bullish Engulfing candle doing the same at the support zone, indicating a bullish trend incoming.
What’s the Appeal?
At every point in time, traders can look at the chart, place the chart in a Candlestick pattern, and grab a feel/perceptive of how the market is doing per time. With consistency, mastery, and application, a trader can correctly time the market, get accurate entries, and exit by understanding price action via Candlestick formations.
Weaknesses
Candlesticks charts by themselves do not have a weakness. However, its weakness may come from the trader using it. For example, as with other technical indicators, Candlestick does not work in isolation. Even though the chart pattern tends to give an idea about the market per period, it works best with experienced minds that can extrapolate future trends as well as what is happening in the present.
A constant honing of the skills and mastering Candlestick will eliminate almost all possible weaknesses caused by human errors. This doesn’t mean traders will always make the right decision, but they will usually set themselves up for success if they master the method.
Concluding Thoughts
As we mentioned earlier, it requires a mastery of Candlestick charts in order to use them properly. The chart pattern is best used with the combination of other indicators and not by itself solely. Understanding the basics of support and resistance and applying risk management principles, including paper testing and backtesting the strategies, will hinge traders’ steps closer to better winning edges during trades.
