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 is a candlestick & how does it work?

A candlestick represents the price activity of an asset during a specified timeframe through the use of four main components: the open, close, high and low. The "open" of a candlestick represents the price of an asset when the trading period begins whereas the "close" represents the price when the period has concluded.

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 a green Candlestick mean?

1. The body: This is the thicker bar in the candlestick, which indicates the opening and closing prices of the asset being charted. In most chart configurations, when the candlestick body is green, it shows a price increase for that period of time. Meanwhile, when the candlestick body is red, this indicates a price decrease.