How to interpret cryptocurrency price charts?
To read cryptocurrency price charts, two key elements must be understood: price and volume. The vertical axis (Y) shows the price, while the horizontal axis (X) indicates time. The patterns of the "candles" show price movements over specific periods. The color indicates increases (usually in green) and decreases (usually in red). The volume bars at the bottom highlight the intensity of trading activities. There are key indicators, such as moving averages or the relative strength index (RSI), that help interpret market trends and their potential reversals.
