Intraday trading is a method of investing in cryptocurrencies where the trader buys and sells cryptocurrencies on the same day without any open positions left by the end of the day. Intraday traders aim to either purchase a cryptocurrency at a low price and sell it at a higher price or short-sell a cryptocurrency at a high price and buy it at a lower price within the same day. This requires a good understanding of the market and relevant information to help them make the right decisions. In the cryptocurrency market, the price of a cryptocurrency is determined by its demand and supply, among other factors.Tools such as candlestick chart patterns are very helpful to traders. We will discuss these candlestick charts and offer steps to help you read them. Candlestick Graphs/ChartsCandlesticks are a visual representation of the size of price fluctuations. Traders use these charts to identify patterns and gauge the near-term direction of prices in the cryptocurrency market.Composition of a Candlestick ChartThis is what a candlestick chart pattern looks like: <img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/1f7ac2a5766e463e96324ff3cc59c508.png" />As you can see, there are several horizontal bars or candles that form this chart. Each candle has three parts:1. The Body2. Upper Shadow3. Lower Shadow<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/d2537379c75b4ba0985562cf4ec85b9b.png" />How to Analyze Candlestick Chart for CryptocurrenciesThe body of the candle in a candlestick chart represents the opening and closing price of the trading done during the period for a particular cryptocurrency. Understanding this is crucial for candlestick trading. Traders can quickly see the price range of the cryptocurrency for the said period by looking at the chart. Moreover, the color of the body indicates whether the price is rising or falling. For instance, if a candlestick chart for a month with each candlerepresenting a day has more consecutive red candles, then traders know that the cryptocurrency&#39;s price is falling.Vertical lines called wicks or shadows above and below the body show the highs and lows of the traded price of the cryptocurrency. Traders can use this information to analyze the sentiment of the market towards thecryptocurrency.Candlestick Chart PatternsCandlestick charts are an excellent way of understanding investor sentiment and the relationship between demand and supply, bears and bulls, greed and fear, etc., in the cryptocurrency market. Traders must remember that while an individual candleprovides sufficient information, patterns can be determined only by comparing one candle with its preceding and next candles. To benefit from them, it is important that traders understand patterns in candlestick charts.Let&#39;s divide the patterns into two sections:• Bullish Patterns• Bearish PatternsAnalyzing these patterns can help traders make informed decisions about buying or selling cryptocurrencies.Bullish Patterns• Hammer patternThis is a candle with a short body and a long lower wick. It is usually located at the bottom of a downward trend. It indicates that despite selling pressures, a strong buying surge pushed the prices up. If the body is green, it indicates a stronger bull market than a red body. <img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/c71b5729a3a34a2dada02d907b8d7b57.png" />• Inverse Hammer patternThis is a candle with a short body and a long upper wick. It is usually located at the bottom of a downward trend too. It indicates buying pressure followed by selling pressure. It also indicates that buyers will soon have control. <img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/591f217723a54aab97015d7f905ab73e.png" />• Bullish Engulfing patternThis is a pattern of two candlesticks where the first candle is a short red one engulfed by a large green candle. It indicates a bullish market that pushes the price up despite opening lower than the previous day. <img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/4617918f78bf42f786413e81f7d1d8d3.png" />• Morning Star patternThis is a three-candle pattern that has one candle with a short body between one long red and a long green candle. There is usually no overlap between the short and the long candles. This is an indication of the reduction of the selling pressure and the onset of a bull market. <img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/8b9b4a574b244011a8c3c17de05091c8.png" />• Hanging Man patternThis is a candle with a short body and a long lower wick. It is usually located at the top of an upward trend. It indicates that the selling pressures were stronger than the buying thrust.It also indicates that bears are gaining control of the market. <img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/5746f1c083cb4394b7121e1cb545a4d6.png" />• Shooting Star patternThis is a candle with a short body and a long upper wick. It is usually located at the top of an upward trend too. Usually, the market opens higher than the previous day and rallies a bit before crashing like a shooting star. It indicates selling pressure taking over the market.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/954ced624e9c40b8b163705853b07b69.png" />• Bearish Engulfing patternIn candlestick chart analysis, this is a pattern of two candlesticks where the first candle is ashort green one engulfed by a large red candle.It usually occurs at the top of an upward trend.It indicates a slowdown in the market rise and an upcoming downtrend. If the red candle is lower, the downtrend is usually more significant.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/ae60419f4ae748dfbcd28198cf423085.png" />• Evening Star patternThis is a three-candle pattern that has one candle with a short body between one long red and a long green candle. There is usually no overlap between the short and the long candles. This is an indication of the reversal of an upward trend. This is more significant if the third candle overcomes the gains of the first candle.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/fa201d3b5e444008ab9744af24e457a6.png" />• Three Black Crows patternThis is a three-candle pattern that has three consecutive red candles with short wicks.These candles open and close lower than the previous day. After an upward trend, this is a strong indication of an upcoming bear market.Potential.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/34f2088dd31f4c378deb87ef6f5869c2.png" />Pattern Definition: A bullish harami is a two-candlestick pattern in technical analysis.First Candlestick: The first candle is a large bearish (red or black) candlestick.Second Candlestick: The second candle is a small bullish (green or white) candlestick that is completely contained within the body of the first candle.Market Indication: This pattern indicates potential reversal of a downtrend.Significance: Suggests that selling momentum is decreasing, and a possible upward move may follow.Confirmation: Traders often look for additional bullish confirmation on the third day or subsequent trading sessions.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/d842b63729a94c29a21a87f0a4df334c.png" />Definition: The Bearish Harami candlestick pattern is a two-candle reversal pattern that signals potential bearish trend reversal.Structure:First Candle: Large bullish (upward) candlestick.Second Candle: Small bearish (downward) candlestick completely contained within the body of the first candle.Indication: Suggests that the upward momentum is slowing down and a reversal to the downside may occur.Context: Often found at the top of an uptrend.Confirmation: Strengthened by subsequent bearish candles following the pattern.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/e62bb3c0771f4916978e79389e2514c4.png" />Chart patterns can be used to understand trends and sentiment in the cryptocurrency markets. There are several other patterns to explore in order to gain a deeper understanding of market movements. Use this as a starting point and continue to learn and refine your analysis skills.Happy trading and successful investing!Update idea

A Practical Guide For Candlestick Patterns!

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