What is a candlestick in a crypto chart?

A candlestick shows the change in the price of an asset over a period of time. As the basic indicator in a crypto chart, each candlestick represents a specific price movement, including the opening and closing prices, as well as the highest and lowest price points.

What are crypto candles & how do they work?

Crypto candles represent emotion-based behavior related to the price of an asset during a specific period of time using a few crucial components. Most simply, they are a quick and accurate visual of whether the price movement within a given market is positive or negative and how great either direction is.

What does a red candle mean in crypto trading?

A red candle shows that the closing price was below the opening price. If a candle changes to green, the price of the asset increased and closed above its opening price. As time progresses, multiple candlesticks create larger patterns that crypto traders derive signals from to make vital trading decisions.

What is a closing price in crypto?

The close or “closing price” of a crypto candle is the final price of an asset’s movement once the period of time has ended. A green candlestick has the close at the top of the body, while a red one has it at the bottom. On the other hand, the open or “opening price” of a candle shows an asset’s price at the start of the trading period.