Price action analysis through the models of Cryptocurrency Candolabras
The world of cryptocurrency is known for its volatility and unpredictability. With the prices that flow quickly, it can be difficult to make informed investment decisions. An effective way to analyze the action of prices in cryptocurrencies is through the models of candelabra. Models of candelabra used in the analysis of cryptocurrency, their characteristics and the way they can be applied in practice.
** What are the Candelabri patterns?
The models of candelabra are graphic representations of the price movements that transmit information on market conditions. An inclusion of a series of horizontal lines (Wicks) on a graph open in money, which represent the high and low prices of safety. The wicks are connected to their queues, creating a form of “candle”.
Types of Candole Candles in Crying
Here are some common candlestick patterns used in the analysis of cryptocurrencies:
- The first line (the upper stop) extends above
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- Momentum Candlestick patterns :
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* descending triangle
: a reduction tendency is indicated by a trendy line down (red), a lower wick, a higher wick and therefore a blue triangle in the end.
- Piercing Line Candlestick Patterns :
* Long line of lower piercing : a line of lower piercing is formed when a rise in the rise begins to vanish, indicating the potential for a new turnaround.
* The line of short piercing : a short line of upper piercing indicates that an update approaches its end.
Features of each model
The models of candelabra have several characters that can be analyzed:
- Confirm :
- Duration of the reason :
- Position of the reason :
How to apply the candlestick patterns
To effectively use the models of candelabra for the analysis of the cryptocurrency:
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Conclusion
Models of candelabra and precious tools for analyzing prices in cryptocurrencies. Of although no single model is infallible, combining candelabra models with other technical and fundamental indicators can help form a solid trading strategy.
