Candlesticks are a graphic representation of price movements used by cryptocurrency traders to analyse, predict and make informed decisions regarding cryptocurrency assets on a trading platform. Candle charts form the basis of crypto trading and it is the most common depiction of the price movement of an asset within a specific time period.
There are four main points represented on a real body candlestick – the opening price, the highest trading price, the lowest trading price, and the closing price of a given asset (the current price is also visible when a candlestick is still being formed).
The default colors for candlestick charts are red and green, with the former depicting a downward movement in price and the latter depicting an upward movement in price from its opening price on a specified time frame.
A single candlestick may represent an hour, day, week, month, or year depending on the type of insights the trader aims to derive out of any number of trading sessions.
What are candlesticks body?
A candlestick body depicts the opening price and closing price of a cryptocurrency on any specified time frame on a trading chart. They are usually two thin lines at the top and bottom of the body of a candlestick which depicts the highest price and lowest price reached within the set trading interval.