Hi dear friends
I hope you are well and enjoying your time with Leo platform. I am back here after a while with my basic tutorial. Today I am going to share some basic things about trading. The most important and much looking item on a trading chart is candle chat. It is really important for us to know the basic things about candle chart so that we can trade wisely.
So here in this explanation I shall use **Appics** token and its data. You know **Appics** token is based on steam blockchain. I shall explain some scenario of **Appics** token through the historical data to explain candle chart and the basic idea like support, resistance and patience of it.
What is Candle Chart:
If you just go through any sort of trading chart we can see first the candle chart where Red and Green candles. And this Red and Green candle makes a trending of the price. These candles can be developed for several intervals of the time. Like for example if you like to see the candle chart of 15-minute interval you can see also. So, if you want to see the candle chart of one week in trouble you can also see.
So, hear green candles indicate the upward trend of the price. And the red candle indicates the downward trend of the price. In green candle opening and closing price is from bottom to top of the candle according to the figure below. And for red candle as it is downward Trend the closing price is the lowest part of the candle and opening price is the highest part of the candle. This opening and closing price price of a specific interval as I have explained earlier. You can see a straight vertical line in the axis of the candles. This line indicates the highest value and lowest value of **Appics** token of in that specific time period. I think it's clear now.
Selecting the Time Interval
There are several kinds of traders available in the market. Some are short term traders some are long term and some are scalpting. Soup for various kinds of investor and chart for various interval.
• Short term traders are basically of one day for couple of minutes for hours-based investor and traders.
• Long term traders basically hold their money for gaining a specific amount of Return.
• Scalping traders are spot oriented and the immediately sell or buy if they gain a bit profit. And for this reason, the need to spend or invest more money to get a simple and small return.
So here in the chart you need to set the time frame for your desired data. But here in the start of **Steem** engine, you can only set it for a day. By zooming in and out the chart can be elaborated and compressed
In the chat you can see the initial price was 0.064 and closing price after 15 days is 0.069 (Its price of **APX** or **APPICS** token against **Steem**). So, we can see e in the 15 days start it’s a web like Trend. Like sometimes prices going up and in town and again going up and down and similarly again going up and down. So, in that sense such kind of trends can be seen in various kinds of trading token as well. So, we need to find out The time to buy and the perfect time to sell. The perfect time of buying is called support and the perfect timing for selling is called resistance.
In the figure below the black lines indicates the upward turned and this is also the buying or support zone. When the price is increasing and someone is eager to sell then we need to go with the tide like buy. Without proper information going against the tide is the problem in trading contract. If 10 people are going in same direction if you go to reverse direction that it will be the problem for you because you cannot beat 10 people by your single effort. So here the blue mark is the downward Trend. This is resistance and time of selling. From highest point of the tokens price to the downward trend its selling zone. Those who are for buying and selling they can hold the token for a certain period of time to reach the price at that level after some web and that is called resistance which has been mentioned by the yellow mark in the chart below
Finding Support and Resistance
To find the support and resistance in the chart you need to consider a time frame first and then analysing the pattern in the candle chart. If it is the Wavy per turn then the bottom part of the web is the support zone starting. It will continue up to the top position of the web. And similarly, resistance June started from the top part of the web and it continues up to the bottom line or or support area. So in the bottom part of the web, you can easily by and the top part in the web you can easily sell. For long-term return you can check the resistance as well.
In the chart below the upward Arrow is indicating the support zone starting and downward Arrow indicating the resistance zone starting for **APX** token.
After selecting the price for both buying and selling you can place order from the below chart like this. Here you can see the highest bid price and lowest ask price. If it is placed at highest bid then token can only be sold out immediately. If you place order at lowest ask then you can easily buy the token immediately.
The gap between the highest bid and lowest ask is called bid ask spread. Bid on one coin is the ask on another and ask on one coin is bid on another. Here bid on steam is the ask on **APX**. By putting the price and desired amount of token you can place the buying or selling order very easily.
About Myself in Brief
I am lecturer of Textile Engineering in Bangladesh. I like to share my opinion and ideas through blogging. I would like to share my learning so that anyone can be benefited from my effort. I blog on Textiles, Online Money Making, Agriculture, Technology and some Random topics. Capturing Nature and Playing Cricket is my hobby. I am always a learner and eager to learn from anyone.
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