Japanese Bitcoin Candlesticks Setups
Japanese Candles were developed in the 18th century by the legendary rice trader called Homma Munehisa who used these candlesticks to give an overview of the opening price, high of price, low of price & closing price over a specified period of time.
The candles charts were used by the legendary rice trader to predict the future market prices. After dominating the rice market, Munehisa eventually moved to the Tokyo exchanges where he gained a huge fortune using this candlesticks analysis. It's said that He made over 100 consecutive winning trade positions.
Types of Bitcoin Crypto Charts
There are 3 types of charts used in BTCUSD CryptoCurrency trading: Line charts, bar charts & candles charts.
Line charts
Line charts - line charts are plotted using a continuous line connecting closing prices of a BTCUSD, Bitcoin cryptocurrency.
BTCUSD Line Chart - Bitcoin Trading
Bar Charts
Bar charts - bar charts are shown as sequence of O-H-C-L bars. O.H.C.L. represents OPEN HIGH LOW & CLOSE price. The Opening price is high-lighted as a horizontal dash on the left and closing price as a horizontal dash on the right.
BTCUSD Bar Charts - Bitcoin Trading
Main disadvantage of bar charts is that they aren't visually appealing; therefore most Bitcoin traders don't use these trade charts.
Candle BTCUSD Charts
Candle BTCUSD Charts - candle charts use the same price data as bar charts (open, high, low, and close price). However, these candlesticks charts are presented in a much more visually appealing manner that looks like a candlestick with wicks on both ends.
BTCUSD Candles Charts - Bitcoin Trading
How to Interpret and Analyze Japanese Candles Charts
The rectangle part is called the body of the candlestick.The high and low are described as shadows and drawn as poking lines.The color is either blue or red
- (Blue or Green Colour) - Shows prices moved up
- (Red Color) - Shows prices moved down
Most trading platforms like the MT5, use colours to mark direction of the candlesticks. Color used are blue or green: when price moves up and red: when price moves down.
When candlesticks charts are used it's very easy to see if the price headed up or down as opposed to when the bar charts are used.
BTCUSD Candles Charts vs Bar Charts
The Japanese candles charting methods also have very many formations which are used by technical analysts to trade the BTCUSD cryptocurrency. These candlestick chart patterns have different trading analysis explanation and the most regular Japanese candlesticks patterns are:
- Marubozu and Doji candles
- Spinning Tops candles
- Reversal Patterns candlesticks
- Inverted Hammer and Shooting Star candlesticks
- Piercing Line & Dark Cloud candlesticks
- Morning Star and Evening Star candlesticks
The above Japanese Candlesticks patterns is what makes Japanese candlesticks charting popular among traders and it's why this type of analysis is the most widely used when it comes to analyzing the BTC/USD Bitcoin CryptoCurrency prices. The analysis for these candles setup setups in Bitcoin trade is the same as that one used in Stocks trading & also Forex currency trading.
Drawing These Candlesticks Charts on MetaTrader 5 Platform Software
To draw these candlesticks charts on MT5 platform software, select the charts drawing tools within "MetaTrader 5 Toolbar" like is shown below.
MT5 Charts Drawing Toolbar
To view this charts toolbar on MT5 go to 'View' Next to the 'File' at the left top corner of MT5 Software, Click 'View', Then Click 'Tool Bars', Then check 'Charts' Button. Above toolbar will appear.
Once the above charts tool-bar, appears you as a trader can then select the chart type you want to convert to, If you as a trader want to view using bar charts format, press the bar chart toolbar button as illustrated above, for line charts format click the line chart toolbar button, for Japanese candlesticks format click the "candlesticks chart toolbar button".
Study More Guides & Tutorials:
- BTCUSD Crypto Online Trade
- MT4 BTCUSD Chart Change Chart Time BTC USD Charts
- RSI Hidden Divergence BTC USD Trade Strategies
- MT4 Opening a Bitcoin Trade Chart Guide Tutorial
- How Do I Add Bears Power Indicator on a Chart?
- Understanding Candles in BTC USD Trade
- BTC USD Mini Account
- How to Guide for Trading How MT4 iPad App for Beginner Traders
- How Do I Identify a Double Tops Pattern in BTC USD Trade?
- Best BTCUSD Trade Market Session Hours Described
