Intro to Cryptocurrency Market Graphs
All right next let’s dive in and learn more about the graphs themselves. So for us to go back to the Bittrex marketplace and for us let’s choose let’s just say NEO for example.
So the first thing we see here is a chart we have sometimes at the bottom and on the side we have a pricing index. We have some more advanced stuff at the top here. As a beginner it’s just not really important you don’t really need those. The only things you really want to pay attention to is where the ups and downs are the colors and the candles themselves as well as the duration of time.
for now each one of these candles represents this amount of time so the width of this candle is 30 minutes. This candle 30 minutes they’re all 30 minutes because we have it set for 30 minutes.
ıf you go all the way to the back here right from the beginning every single one of these is set to 30 minute intervals. That’s the representation we’ve set. If we change this to one day then every single candlestick will represent one day. The trend on this day was a huge growth rate in NEO the trend the next day was in the other direction. Then the trend in the next day went up and the trend the next day went up even more. So that’s the idea here. So from here the trend on average per day went way up OK.
If we switch over to three day or one week or a month let’s say then you can see here that there’s only a few candles here because that’s all that exists because it’s one month intervals. Each one represents one month.
Let’s change this now to 1 hour. That means every single one here represents one hour of time every single whit if we go to us just say let’s just pick this one for example what this means. Each one is called a candlestick. The block itself is your wax and the line is the wick coming out of the wax. so that’s why it’s called the candlestick. During this 1 hour period because over here we have it set to an hour or so during this one hour period. The price went from down here all the way up here. In that one hour at some point that was the high that was the low end for this red one over here. The high was way up here and the low was just below it here. So that’s what that represents. It’s the total fluctuation in that duration of time in that interval. All right so I hope that’s easy to understand.
The next thing to understand is the height of each actual candle so what that means is it started here at some point. It went below to here and then it went all the way up to here at some point and then it finished here. So what those mean the very top and bottom of the actual candle that means where it opened and were closed during that time period. ıf we switch to the one week now this means one entire week. So at the end of the last week it ended down here and it started there and we know that because it’s red.
So it started here and then went down to here and ended. But because the weak way down here at some point in that week it actually went all the way down here before finishing the week. At this point. So for the green and the next week we know we started here because we ended here in the last week. So we’re going to start at that point at some point during the week. It went all the way down to here. And then at some point in the week it went all the way up to here and then it finished the week right at the top here and that was an increase from where it started.
That’s why we have a green one. This was a decrease from where it started. That’s why we have a red candle so that’s really the way to view this stuff. It’s the only really important things at this stage that you want to know is the interval time what the candles were present for that interval time how the price fluctuates during that time period where it started and where it’s sold. So using that information you can get a better picture of how the trend was going and the whole point here is to try to predict the next one.
In this case we’ve gone from this point here it ended there then it went to here to here here to here here to up here. It started here went down a little bit went way up then finished down here at this part. Then the next block it went here all the way down to here. At some point it did go higher but at a certain point at the end of the year one week interval it finished here and again there’s no 100 percent accurate way to do this. But using this information and understanding it allows for a much better chance of predicting which the next one will be.
So I find it hard to predict over the week. So I tend to go to more of the the hourly. But if you look at the we can get kind of an overview of where the entire market has been going lately. So for here you can see that it’s gone all the way down. But you’ll notice in the last hour it’s actually starting to go up. So as we’re seeing before this may be a good time to buy in because the ask is very close to the 24 hour low. And we just finished a very long decline. This one went up a bit but then all the way down right there was a huge change. But this one it started down here and actually did all that and finished halfway. So in this case there’s a good chance that the market is kind of turning around here for NEO.
This might be an OK time to buy. However if we compare these two candles you’ll notice that it started here went a little higher and then dropped all the way down and then we started here at some point it went a little lower than it went way up. And then at the end of the hour it finished right here at 0,010 because it went so high at some point and it finished here. That might be a good indication that the trend was going down. So we want to find candlesticks in the other direction.
So let’s try to find one over here. So the price started right here. It went up for a bit. Then at some point it went all the way down and then it finished right here. We know the next price based on this candle is going to be right here. But if this one didn’t exist based on this candle because it went all the way down and then it finished here. That was an uptrend rated at some point it was way down here but it finished higher than the lowest. So it’s going to start there and probably continue to trend up a bit. You know it may not. But it’s a good way to look at that. Let’s look at this one as well. It started here it went down a bit went way up here and then finished here. Now again that might be a good indication that it’s going down but it didn’t. It ended up going here going way back up.
You can’t always predict what’s going to happen but knowing this information allows you to kind of analyze the market as a whole and you’ll pick up trends as you go along and see different patterns in the marketplace and make your own judgments on this stuff. If they know for sure that when they see a candle that goes all the way up to here and finishes here that the next one would skyrocket in green. I mean that would be written all the books and everyone would know it. But the way it is is not like that. You know and this is this is what makes it very volatile. People lose their money people get a lot of money and that’s just the way the market goes.
Like I said before it really depends on a lot of factors. For example Bill Gates purchased I believe $5 billion worth of theory in 2017 and that is a lot of Money all of a sudden being put in to Ethereum. So that would affect the market. Things like that when influencers come in and talk about a certain cryptocurrency is going to influence the market when there’s talk of a potential split of a cryptocurrency like what we had Ethereum or what we had with Bitcoin that’s going to scare some people it’s going to create some scarcity. And people are going to panic and sell. That’s exactly what happened with bitcoin. There was a bitcoin fork split on August 1st 2017 and just before that everyone was talking about it you’re going to lose your Bitcoin is going to crash. What’s going to happen. Nobody knew. Blah blah blah blah. So what ended up happening was just before about a week before maybe two weeks before everybody panic sold and the price of bitcoin dropped like 50 percent. So that would have been an incredible time to buy in a lot of people did buy. And for those people who did buy into Bitcoin at that point you know good for them for noticing that trend or taking the risk you know.
But the reality is there are other influences on the market. And you can’t know them all. So studying the trends read as many articles as you can. There was another Web site called Quora. You are a they have a lot of people posting questions about cryptocurrencies and there’s a lot of great answers. Again most of the people posting and providing answers they may not be experts so take with a grain of salt but again learn as much as you can learn to read the charts or again by Bitcoin and just hold out because there’s a very good chance that one will do very well over the long term and there will definitely be SCMS scarcity moments like we had in the past where people panic sell. I heard someone on Facebook panic sold and lost 40 percent and then you know Bitcoin and then two days later went back up to where it was. It’s already up another 40 percent I believe since then.
So they lost 40 percent and then gained 40 percent. So I mean they missed out on an opportunity if they would have either held through it they would have made money because it’s up 40 percent pass before it originally dipped or if they were able to predict the drop in panic sales and sell early and then rebuy when it was lower that would have been an awesome thing to do as well. So it’s all about timing. It’s just like the stock market.
Everything is timing cryptocurrency is again you’re playing the volatility game it’s everything is going to go up and down super quick every 24 hours even almost to the minute things just change so fast. And as you can see her 149 percent feel 47 percent. I mean they move so fast and realistically it probably won’t do Bitcoin but it’s possible. And that’s what’s crazy about cryptocurrency is they are so volatile.