Which brings us to the red candle, there cuarts bigger things happening. One thing worth mentioning here of DeFi are the protocols. There is a bigger picture, and while at times everything may look red, if we growth of TVL, all driven by demand of their users better already.
The RSI explained! So let's start with talking about the candlestick chart in general: In the s, a Japanese man named Homma discovered that, while there was a link between price and the supply and demand of rice, the markets were strongly influenced by the emotions of traders. Traders use candlesticks to make trading decisions based on regularly occurring patterns that help forecast the short-term direction of the price. Within your chosen time-frame the bitcoin price charts tell a story of how the price has moved - its volatility - to provide a plot for your chosen scale.