Technical Analysis Basics: Candlesticks and Trend Reading

What is Technical Analysis?

Technical analysis studies historical price and volume data to predict future price movements. It assumes market behavior repeats and all information is reflected in price.

Candlestick Basics

Each candlestick contains four prices:

• Open: Price at the start of the period
• Close: Price at the end of the period
• High: Highest price during the period
• Low: Lowest price during the period

Green candles indicate close > open, red candles indicate close < open.

Trend Identification

• Uptrend: Price makes higher highs and higher lows
• Downtrend: Price makes lower highs and lower lows
• Sideways: Price oscillates within a range

Support and Resistance

• Support: Price levels where buying pressure prevents further decline
• Resistance: Price levels where selling pressure prevents further rise

Volume

Volume confirms trends. Healthy rallies should be accompanied by increasing volume.

Practice

Use NowToCrypto's trading page to practice identifying candlestick patterns and trends with paper trading.