Some of the Most Common Candlestick Figures
A candlestick chart is a method of showing prices — namely open, high, low, and close — of an asset for a defined period. Candlestick charts are thought to have originated from Japanese rice traders in the 18th century. They are still one of the most popular ways of displaying prices of financial markets.
Three of the most useful candlesticks for identifying a potential trend change or for gauging market sentiment are the “doji,” “hammer” and “shooting star.”
The doji is a prime example of what traders mean when they say a candlestick represents human emotion or market sentiment. When the asset price swings in both directions before closing near its opening price, it is clear the market is indecisive about the asset’s true value.
The classic doji candle representing an indecisive market comprises equal-length wicks and a very thin, centrally located body. Further, there are several variations of doji, which signal trend exhaustion/trend reversal.
A hammer is the precursor to a potential downtrend reversal and can be a big money maker for the bulls.
Hammers are formed when price sinks below the open only to later return and then close above the open. Such price action signifies that at one point during the trading period sellers temporarily gained control but quickly gave it back and then some, for a bullish close to the candlestick.
The physical features of a hammer consist of only one wick roughly two times the length of the body which is located at the top of the candle.
Last but not least, the shooting star is the exact opposite of the hammer.
The shooting star occurs at the peak of an uptrend when the bulls rally to start the trading period, but eventually, lose control to the bears who drag prices to a close below the open.
It’s important to keep in mind that the longer the duration of the candlestick, the more powerful its effect is on the overarching trend.
For instance, a hammer spotted in a one-hour candlestick will have almost no impact on a 6-month long downtrend, whereas if the hammer formed on a 1-week long candlestick, its reversal impact would be much more significant.
There are various ways to use and read a candlestick chart. Candlestick chart analysis depends on your preferred trading strategy and time-frame. Some strategies attempt to take advantage of candle formations while others attempt to recognize price patterns. So do your research and make the best use of it to become a successful trader.
What is Tokenize Xchange’s DCA Feature?
DCA stands for Dollar — Cost Averaging, an investment strategy in which the total amount to be invested across periodic purchases of a target asset. The goal of DCA is to reduce the overall impact of volatility on the price of the target asset.
How does it work on Tokenize Exchange?
DCA feature allows you to automatically make purchases periodically (daily, weekly, monthly).
For example, you choose a monthly option. Next, you will be able to choose which day of the month you want to buy. For instance, 1st day every month. Then, you’ll choose the time, eg, 6 pm.
Then, at 6:00 PM 1st monthly, it will auto-buy at whatever price (Auto place makes order).
For weekly option, it will process the same way, you must choose the date and time. Then on exact time & date, it will execute the order.
Here is steps by steps to use DCA on Tokenize Xchange :
Step 1: Go to the website then choose the market that you want to trade.
For example: If you want to trade BTC- USDT, click on BTC market
Step 2: Click on “ Try our DCA “
If you want to buy USDT, click on “ try our DCA “.
Step 3: Input investment amount, ask currency, repeat purchase ( Daily, Weekly, Monthly ), accumulate for and choose the date. After that, click on “ Start now “.
Step 4: Confirm your DCA
A green notification will show when you complete the DCA
Commission for this feature is 1% applied to all members!
Note: Time only specific only on hours.
Tokenize Blog is the place where you can find good market updates, important updates of our products, crypto-technology, and trading tips. Here are some interesting articles we offer this week that you might want to check out:
Recently China has issued restrictions on financial institutions and payment companies from providing services related to digital currencies including mining and trading and warned investors against the risks of speculative cryptocurrency trading. In this article, Tokenize Xchange would go deep into the impact of China’s crackdown on Bitcoin on the crypto mining industry, cryptocurrency exchange, and the global market in general.
It was the latest attempt of the government to calm down the crypto outbreak in China. Under the crackdown, all financial services involving digital currencies will not be allowed to be provided to clients.
CONTINUE TO READ
El Salvador Wants to Accept Bitcoin as Legal Tender: What’s the Reason?
“Next week I will send to Congress a bill that will make Bitcoin a legal tender in El Salvador,” Said President Nayib Bukele in a video broadcast at the Bitcoin Conference 2021 in Miami, USA. His announcement raised criticism and a worldwide debate. In this article, Tokenize Blog will go deep into the reason why El Salvador wants to adopt Bitcoin.
Said President Bukele: “In the short term this will generate jobs and help provide financial inclusion to thousands outside the formal economy and in the medium and long term we hope that this small decision can help us push humanity at least a tiny bit into the right direction.” He said via Twitter that his government would give “immediate permanent residence to crypto entrepreneurs”.
President Nayib Bukele, 39, has been in power since 2019. His party New Ideas won a major victory during March 2020 National Assembly elections, winning 56 out of 84 seats which means that his Bitcoin bill is likely to pass. El Salvador is the smallest country in South America with 40% of the population living in poverty.
President Bukele’s proposal has raised understandable controversy and skepticism among the cryptocurrency community, legislators, and other observers around the world. To understand why this announcement is not as crazy as it sounds, let’s zoom on the economy of El Salvador and how Bitcoin might become a financial solution for this country.
Bitcoin’s Taproot Upcoming Upgrade and How It Matters to the Network
Bitcoin’s Taproot upgrade has been considered an important first step towards addressing Bitcoin’s lack of privacy and other related concerns. But what is Taproot and how can it benefit Bitcoin? If you are still confused, this article from Tokenize Exchange will help you answer the questions!
Bitcoin has experienced its ups and downs along the way. Regardless of all issues that have arisen over the years, for example, the Mt.Gox hack or the Bitcoin hard forks, the crypto community still keeps their belief in Bitcoin.
However, certain issues cannot be ignored, one of the biggest ones is privacy. Since Bitcoin is based on a public blockchain, anyone can track the transactions that occur in the network. For some, that’s a big concern. Traders can increase anonymity through techniques such as CoinJoins, unfortunately, none of these make Bitcoin a private currency.
An Easy Guide on Blockchain Incentive Structures
The incentive theory of motivation is a fundamental rationale for human behaviour. It argues that incentives or ‘rewards’, can encourage a specific, and/or desirable behaviour.
Is this a psychology essay? No.
But neither are you going to finish that last cookie because it tastes repulsive. You’re ‘motivated’ to eat it because it’s delicious, and that’s your incentive; your reward.
So how can we apply this theory to blockchain networks?