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 does the 'open' and 'close' of a candlestick mean?

The "open" of a candlestick depicts the price of an asset at the start of the trading period, while the "close" depicts the price at the end of the period. For a given trading session, "high" and "low" refer to the highest and lowest prices, respectively. There are two visible parts on each candlestick that show the four primary parts.