The crypto market capital acts like stock exchanges. Investors trade different cryptocurrencies and earn profit by analyzing the trends at crypto exchanges. The real deal is to act according to the trends and avoid misadventures, but how are these charts made? Are the bars moving upward and downward indicate the prices of coins? These bars are known as candles in business terms and have several patterns to indicate coin trends. To understand how candles work, you can use KuCoin exchange. On KuCoin, you can not only understand the function of candles but can also recruit trading bots which will further assist you in trading.
Hammer Candle Stick Pattern
Candles determine a coin’s opening-closing, high, and low prices. Several patterns include Hammer candlestick, Hanging man, Doji, Shooting stat, etc. If we talk about the Hammer candle, it is bullish. Bullish is a term used to define an uprising trend. It goes downward and forms a hammer candle which afterward moves upward. Like all other candles, the body of the hammer candle indicates the opening and closing price, and the shadows (wick) indicate the lowest and highest price recorded in a certain span. The wick of a hammer candle will be twice the size of the candle’s body in the downward direction. The Hammer candlestick is formed when opening price is lower than closing one due to different consequences. The candle’s color doesn’t matter as Hammer candle can be green or red. The actual purpose of the Hammer candle is to indicate the bullish upward trend, which is formed after more or less 2 or 3 bearish trends also known as Hanging man candle. The Hanging man is somehow the opposite of Hammer candle as it is formed upward and indicates decrease in price.
Bitcoin Hammer Candle
If we talk about Bitcoin, the most powerful and stable coin in the blockchain. 1 Bitcoin price is equal to 24.7K dollars at the time of writing, reflecting the heavy market cap and stability BTC possesses. Bitcoin observes Bullish Hammer on 11 Aug. The reason for few hammer candles is the high demand for bitcoin. Bitcoin’s market cap is more than the entire GDP of several countries, estimated to be 470.9 Billion.
Ethereum Hammer Candle
Ethereum candlestick chart is also very fascinating. ETH observed Bullish Hammer on 13 Aug Ethereum price USD is around 1,890 dollars making it the second biggest coin in the blockchain.
Shib Inu Hammer Candle
Shiba Inu was launched in 2020, dubbing itself a dogecoin killer. SHIB observed Bullish Hammer candle on 26 Jul, and 13 Aug. Although this is a meme coin and new but has shown positive signs. 1 Shiba Inu price is equal to 0.00001246 USD.
Trading crypto is an art; you can only master it after understanding all the candlestick patterns and how they perform. To analyze these charts, you can use the Kucoin exchange platform, which allows you to trade more than 600 currencies while charging minimal fees.