Candlestick charts are a graphing technique primarily used to speculate the price action against time. With each candlestick, traders can review four primary pieces of information including the opening and closing price along with high and low at any given time frame.
Candlesticks play a crucial role in cryptocurrency trading, where the patterns formed in the candlesticks can predict a bullish or bearish market. Candlesticks are considered as leading indicators as they can get ahead of the trend.
Using any charting tool, traders can change the time period of candlestick charts from one minute, five minutes, one hour, all the way down to one month. Further tweaks can be made on the candle color, although the default is set to green/red or black/white.
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