While there are different types of charts, we are using and suggesting everyone else using a candlestick chart.
Every candlestick tells you a very nice story about the price action in the time frame that is represented by.
In order to form a candlestick, you need the opening price, the high, the low, and close of the period you want to represent by.
In the past, traders used to draw them by themselves.
However, today we have them all drawn by charting software which makes this a lot of easier to use.
Just think of this as a big advantage that you do not have to do it all by yourselves.
Since it is all drawn by software, you have everything ready for you to start.
The story behind these candlesticks is essential when you try to make an opinion about the market at the moment you are looking at.
Any time frame, from 1 minute to 1 year, can be displayed through candlestick charts.
Since candlesticks can form any possible shape, we would like to point out the shapes of candlesticks with powerful background story meaning.
Every price move is represented by a candlestick.
It stores all data price did in the past.
Everything else is derived from candlestick’s data.
Every one of them has its own story.
The majority of them are not so important for us, but when we come across some of them with powerful meaning, we get a sign that could help us a lot.
Everything else you will learn later will be based on candlesticks.
That’s why you have to understand everything we explained about these God-given signs.
The majority will say that candlesticks are basic.
Yeah, they are very basic but if you master them, you will barely need anything else.
Everything else will be derived from them and when it comes to trading setups, final confirmation will be awaiting candlestick closure to make a decision of taking a trade or not.
For any trading strategy to be successful, it has to be simple. It has to be easy to use. And when put into practice, it has to work.
Trading is not about a bunch of lines on your screen.
It is about understanding the price action concept.
When you focus on a basic and clean up your charts from these lines so you can see the price action, you will see a big change in your results very fast.
If you can’t explain your strategy to a 7-year-old kid, you are having a problem.
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Milos is an independent trader, with a background in journalism and publishing. Nomadic by nature, he’s lived in four different countries this decade. He’s fascinated by Blockchain technologies’ potential to reshape all aspects of our lives. Milos got into Bitcoin while completing his degree and hasn’t looked back since, writing about anything crypto-related. He is the co-founder of the Cryptoaims and he has a strong passion to educate people about this revolutionary technology.