as a use case for understanding the terms and concepts of trading.
Candlesticks were invented by some asian rice trader time ago.
Their shape, color
and relationship express a certain amount of information, comparable to the differences of written music notes.
Tecnical analysis of charts tries to gather as much information as possible on the actual "heart beat" (blood presure might be more accurate) of a market, the relation between the interest to buy and sell the asset
Standard concepts look at #candlestick
(relative strength indicator).
Basic difference is if the action is to buy
an offer (green/white), the higher price, or to sell
into an offer (red/black) the lower price.
The difference between both prices is called price spread and can vary a lot, depending on the intensity of the trading action.
The relative information of the price action in a certain time laps is expressed in a candlestick.
Most common time intervals are month/week/day/4h/1h.
The bitcoin market has certain differences to traditional markets. You probably can say that it has become recently (over the last year) the first working globalized 24/7/365 decentralized real time trading market.
Because of it's very nature, adoption curve and other aspects, the bitcoin market has been acting like on steroids over the last year, what makes it not only a honey pot for traders, it's like a perfect showcase in fast-forward lessons on trading, markets, the relationship of news cycles and so on ..
An assumption of price evolution into the future is basically only valid for the time interval that is observed.
Like to say, meanwhile you might have an over all positive outlook on the long run, reflected in the monthly scale, you might have days or weeks of pull back ahead reflected in the charts of the daily or weekly view, and at the same time the perspective of certain positive price evolution on the hourly chart.
basics of pattern and candles:
found at @tonevays