Steemit Crypto Academy Season 3 Week 2 - Beginner's Course | Introduction to Charts

It is with great pleasure that I welcome everyone to the second week of the third season of the Steemit Crypto Academy. I'm @reminiscence01, one of the newly appointed professors for the beginner's category, and I wish to extend my gratitude to everyone and also invite you on this journey, as we explore the crypto world through research and collaborative study.

Starting with the proper foot, I will be introducing charts, their components, and how to identify them. This might be new to some people in this category and of course, nothing new to others.

Image Edited in WPS PowerPoint

What is a chart?

Accumulation of information over time requires a systematic way to display the information for easy comprehension and readability.

A chart can be explained to be the use of various things like symbols, lines, graphs, images, pictures, objects arranged in a defined order to represent and convey actual information about the subject of interest.

In finance trading, a chart is used to display the movement of the price of a commodity over a period of time, and based on this premise, technical analysis was developed.

There are many types of price movement charts in finance trading developed from different ideas of how price should be represented, but they all show the movement of price in a specified direction and time. Some of these include Candlestick charts, Line charts, bar charts, volume charts, tick charts, Renko charts, etc. All the above-listed charts do one thing, and that is showing the direction of price within a specified time. The most used chart is the Japanese Candlestick chart.

The Japanese Candlestick Chart

A candlestick chart is a form of representation of the price of an asset indicated by candlesticks arranged following the actual movement of the price of an asset in a specified time. The overall view of the candlestick chart conveys meaning to traders, showing significant price points recorded and hinting at the future movement of price. The use of candlestick charts to determine the future price of an asset is referred to as Technical Analysis.

The candlestick chart is very useful in cryptocurrency trading, it reveals the sentiment of the market indicating which side is in control within a period, either buyer or sellers. Candlestick charts can be used by itself to determine the movement of price, but it is often used with other technical tools to determine the future movement of price, thus aiding in the better trading decision.

The Japanese Candlestick

The Japanese candlestick is an ancient system developed in Japan in the 1700s by a Rice trader Munehisa Homma, characterized by his understanding of supply and demand was determined to study the price rotation and how the market reacts to it, which he succeeded and developed the foundation candlestick.

The Japanese candlestick or Candlestick is widely used because of how it represents price movement. Candlestick tries to graphically illustrate the interaction between buyers and sellers in the market, showing various price points during the interaction. Typically, a candlestick is made of four parts: open, high, close, and low, each representing a specific point in price movement.

Japanese candlestick

Image Source

Dissecting a candlestick (Candlestick Anatomy)

As previously explained, the Japanese candlestick represents price movement with its four-part. We will be discussing those parts:

  • Open (Opening price) -This indicates the start of price movement. The price is marked and built upon as the movement of price is recorded within a specified time.
  • High (Highest price) -This part of the candlestick indicates the highest price recorded within a specified time.
  • Low (Lowest price) -This part of the candlestick shows the lowest price recorded within a specified time.
  • Close (closing price) -This part of the candle indicates the last price recorded in a candle. It marks the end of the candle within a specified time.

The other parts of the candlestick are the shadow and real body, the shadow illustrates the unsettled movement of price, areas that price moved through but couldn't close. In other words, the struggle between buyers and sellers.

The real body of a candle indicates the distance covered by price within a specified period. It is the space between the opening price and closing price, this also indicates the momentum of the candlestick. The bodies of a candlestick are often associated with color for easy identification. Traders can choose how to set up their charts with colors and tools based on their specifications and trading systems.

Candlestick Analysis

It is ideal to understand that the price of an asset or commodity can only move in one of two ways, either up or down. In finance trading, this concept has many names to attribute it with, they include:
Up movement
Down movement
Buy Sell
Long Short
Bullish Bearish
Bulls Bears

The Japanese candlestick is classified based on this movement. Each candlestick body is filled with a color showing the side of the controlled participants.

Conventionally, the upside move candles are called Bullish candles and the downside move candles are called Bearish candle.


Image Source

Bullish Candlestick

A bullish candlestick is a form of price representation that shows an increase in the price of an asset or commodity. It is characterized by the closing price settling and closing above the opening price, this indicates that the price moved upward within a specified period.


Image Source
Explaining the above image, the opening price is below the close price indicating an increase in the price of the asset represented. The low shows the lowest price recorded within the candle, similarly the high shows the highest price recorded within the candle.

In finance trading, continuous formation of this type of candlestick represents a continuous increase in the price of an asset, it is known as Bullish Trend.


Bearish Candlestick

A Bearish candlestick is a form of price representation that indicates a decrease or decline in the price of an asset or commodity. It is characterized by the closing price settling and closing below the opening price. This indicates a downward move of price and a decline in the value of an asset within a period of time.


Image Source
In the above image, the closing price is below the opening price indicating a decrease in the price of the asset represented. Similarly, the low shows the lowest price recorded within the candle, the high shows the highest price recorded within the candle.

The continued sequence of this type of candlestick represents a continued decrease in the price of the asset. This phenomenon is known as the formation of a Bearish Trend.



In our next lesson, we will be discussing various Candlestick Patterns and their interpretation to predict the direction of the market.


As understood in the lesson, charts are an integral part of trading that presents the relationship between buyers and sellers in graphical forms. The Japanese candlestick chart is widely used to show the various price point important to traders to capitalize on the opportunities presented by the market.

A good understanding of the charts will definitely improve one's trading as it offers quality information about the markets.

Homework Tasks

  • Explain the Japanese Candlestick Chart? (Chart screenshot required)
  • Describe any other two types of charts? (Screenshot required)
  • In your own words, explain why the Japanese Candlestick chart is mostly used by traders.
  • Describe a bullish candle and a bearish candle identifying its anatomy? (Screenshot is required)

Homework Guidelines

  • Homework must be posted into the Steemit Crypto Academy community.
  • Plagiarism is a great offense in Steemit Crypto Academy and it won’t be tolerated. Ensure you refrain from any form of plagiarism.
  • Your post should not contain less than 300 words.
  • All images, graphs, and screenshots from external sources should be fully referenced, and ensure to use watermark with your username on your own screenshots.
  • Use the tag #reminiscence01-S3week2 #cryptoacademy and your country tag among the first five tags. Also include other relevant tags like #Charts #Candlesticks.
  • Homework task run from Sunday 00:00 July 4th to Saturday 11:59 pm July 10th UTC Time.
  • Only users with a minimum of 125 SP and having reputation above 50 are eligible to perform this homework task. Also, note that you must not be powering down.

The comment section is freely opened for suggestions and feedback on the lesson and homework task.



Comments 161

Thank you professor for taking us through this wonderful lectures. In fact, I'm eager to take part in this homework

04.07.2021 21:30

Thank you. I hope to see your homework task soon.

05.07.2021 02:23

am I eligible for this homework? REP-57, SP-380
I am asking because recently I have taken part in an intermediate course.

05.07.2021 03:07

Yes , you are eligible to participate.

05.07.2021 03:55

Thanks sir :)

05.07.2021 05:40

Thanks for this great lecture. This is my first time of learning about Japanese candles. I will be glad to participate

05.07.2021 07:18

Thank you. I hope to see your submission soon.

05.07.2021 07:40

Thank you professor, it is well explained.

05.07.2021 07:50

Thank you. I'm looking forward to your homework task.

05.07.2021 08:56

wow! This was an awesome lecture. I will gladly participate in your class professor @reminiscene01. Cheers

05.07.2021 08:40

Thank you, Brother. I look forward to your submission.

05.07.2021 08:58

Good job professor @reminiscence01. Concepts clearly explained. I shall hit your office with my work soon.

05.07.2021 15:27

Thank you. I look forward to your homework task.

05.07.2021 16:43

Esta fue una lectura asombrosa y fácil de comprender. Estaré encantado de participar

05.07.2021 20:53

am I eligible for this homework? REP-54, SP-166, but I have not completed all 4 levels of the newcomer community.

05.07.2021 21:00

Yes, you are eligible to participate.

05.07.2021 21:54

¡Hola Buenas noches! Saludos profesor @reminiscence01. La semana pasada corriguió mi tarea postiada por el profesor @yousafharoonkhan, pero @steemcurator02 no paso por mi publicación aqui le nuevamente mi tarea.

Blockchain, Decentralization, Block explorer

06.07.2021 02:27

Hello Professor @reminiscence01 ,
This is My Entry to Homework post of this lecture.
Thank you.

06.07.2021 17:45

very thoroughly explained. Expect my entry soon

06.07.2021 20:48

my entry for the contestlink
The class was nice honestly
Thank you

07.07.2021 06:39

Prof. @reminiscence01 thanks for the wonderful lecture.

I've completed my homework task, here is my entry

07.07.2021 17:31
08.07.2021 00:58

Saludos profesor @reminiscence01 un gusto tenerlo nuevamente de profesor en esta actividad, por aquí le comparto mi actividad, saludos.

08.07.2021 01:56
08.07.2021 03:26

Nice post
Follow me

[WhereIn Android] (

08.07.2021 06:32

Good day Sir @reminiscence01, thanks for the opportunity to partake in this exercise.

Here's a link to my post:

08.07.2021 15:48

Wow. What a wonderful class


08.07.2021 16:25

hello professor here is my assignment link.

Hope you have a good read

09.07.2021 07:18

Hi professor

My assignment link here

09.07.2021 13:56

Buenas tardes profesor disculpé voto en mi publicación pero no coloco el comentario sobre su corrección le envío le enlace

09.07.2021 20:50

¡Hola Buenas noches! Profesor @reminiscence01 es un gusto participar en sus clases. Aqui nuestra tarea de esta semana Introduction to Charts Por: @psicoaprendiendo.

10.07.2021 00:23

Hello professor, this my entry
Link Twitter

10.07.2021 01:13

Hi Professor @reminiscence01 This is my homework post for your lesson.
Thank you

10.07.2021 06:26

Hello Professor @reminiscence01

Here is my assignment entry link.

Thank you at for the nice lesson.

Thank you @utibeoeffiongart

10.07.2021 08:50

Professor @reminiscence01, thank you for the well-detailed lecture on charts. I really learnt a lot. I have attached a link to my homework task to this comment. Looking forward to reading your review.

10.07.2021 11:57

Hello, professor! Here is my entry

10.07.2021 22:46

Muy buen día, casi quedo por fuera de la jornada, esta es mi primera publicación espero sea de su agrado. Aqui justo a tiempo ... jejejej

11.07.2021 00:01

@reminiscence01 I submitted three days ago but my assignment has not yet been marked. Pls is there an issue I need to know about

11.07.2021 23:38

It hasn't yet been marked
I am sorry for the disturbance but please check it out

12.07.2021 05:31
0 my assignment has not yet been marked it was submitted three days ago Friday 9th of July after @anrosmarth assignment. @reminiscence01

12.07.2021 05:33

Dear Mr. @reminiscence01, thank you very much for reviewing my homework post, but 6 days have passed and I haven't received any upvotes from @steemcurator02 yet. Please take a look.
Here is my post link below.

14.07.2021 04:00