What is a Candlestick?
Candlestick’s Anatomy
A candlestick is a chart used to show the highest price, lowest price, opening price and closing price of a cryptocurrency. The time period may vary from 1 minute to 1 week or even more. Candlesticks is essential part of different trading charts.
The colored part of the candlestick is called the “body” and demonstrates whether the closing price was higher or lower than the opening price. If the candlestick is red the cryptocurrency’s closing price is lower than its opening price. Green candlesticks indicate that the cryptocurrency closed at a higher price than it opened. The lines around the body are called upper and lower shadow. They reflect the highest and the lowest price of the day.
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Candlestick’s Anatomy
A candlestick is a chart used to show the highest price, lowest price, opening price and closing price of a cryptocurrency. The time period may vary from 1 minute to 1 week or even more. Candlesticks is essential part of different trading charts.
The colored part of the candlestick is called the “body” and demonstrates whether the closing price was higher or lower than the opening price. If the candlestick is red the cryptocurrency’s closing price is lower than its opening price. Green candlesticks indicate that the cryptocurrency closed at a higher price than it opened. The lines around the body are called upper and lower shadow. They reflect the highest and the lowest price of the day.
Wanna learn about candlestick types and how to identify trends by looking at them? Subscribe at Nominex Telegram channel! #cryptotrading101
Common order types
Market Order
A market order means to buy or sell an asset at the market price. Market price is determined as the best available price for the asset at the time the order is placed. You cannot place restrictions on the execution of a market order.
Limit Order
A limit order to buy is at the limit or lower price that a trader has decided to buy. A limit order to sell would be at the limit or higher price that a trader has decided to buy. When you execute a limit order an amount of funds is reserved in your account. This does not guarantee that the order will be executed. Limit orders are shown in the order book.
Stop Order
A stop order means to execute a trade at a specific price. This differs from the limit order because once the stop price is reached, a stop order turns into a market order. Stop orders do not reserve funds and do not appear in order books before they are activated.
Stop Limit Order
A stop limit order means a limit order is created at a specific price. Once the stop price is reached, it turns into a limit order. This requires a stop price and a limit price to be specified. Stop limit orders do not reserve funds and do not appear in order books before they are activated.
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Market Order
A market order means to buy or sell an asset at the market price. Market price is determined as the best available price for the asset at the time the order is placed. You cannot place restrictions on the execution of a market order.
Limit Order
A limit order to buy is at the limit or lower price that a trader has decided to buy. A limit order to sell would be at the limit or higher price that a trader has decided to buy. When you execute a limit order an amount of funds is reserved in your account. This does not guarantee that the order will be executed. Limit orders are shown in the order book.
Stop Order
A stop order means to execute a trade at a specific price. This differs from the limit order because once the stop price is reached, a stop order turns into a market order. Stop orders do not reserve funds and do not appear in order books before they are activated.
Stop Limit Order
A stop limit order means a limit order is created at a specific price. Once the stop price is reached, it turns into a limit order. This requires a stop price and a limit price to be specified. Stop limit orders do not reserve funds and do not appear in order books before they are activated.
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Simple Moving Average
Identifying trends, or the general direction in which an asset is moving, can be very helpful for cryptocurrency traders. However, tokens can be highly volatile. Technical analysis helps single out a trend by looking at the ‘moving averages’ which smooth out a cryptocurrency's price fluctuations.
The most basic kind of moving average is the 'simple moving average', which is determined by calculating an asset’s average price over a specific time period. Traders might look at what bitcoin has done over a five-day or 15-day period, for example.
A similar tool that bitcoin traders can use is the 'exponential moving average', which gives greater emphasis to more recent price values when calculating an average.
By analyzing moving averages, traders can get a better sense of when momentum shifts. For example, if a five-day moving average (SMA5) falls below a 20-day moving average (SMA20), this development could point to a bull market turning bearish.
#cryptotrading101
Identifying trends, or the general direction in which an asset is moving, can be very helpful for cryptocurrency traders. However, tokens can be highly volatile. Technical analysis helps single out a trend by looking at the ‘moving averages’ which smooth out a cryptocurrency's price fluctuations.
The most basic kind of moving average is the 'simple moving average', which is determined by calculating an asset’s average price over a specific time period. Traders might look at what bitcoin has done over a five-day or 15-day period, for example.
A similar tool that bitcoin traders can use is the 'exponential moving average', which gives greater emphasis to more recent price values when calculating an average.
By analyzing moving averages, traders can get a better sense of when momentum shifts. For example, if a five-day moving average (SMA5) falls below a 20-day moving average (SMA20), this development could point to a bull market turning bearish.
#cryptotrading101