How to Read Charts and Know When to Buy or Sell Cryptocurrencies
If you want to improve your entries and exits in the crypto market, understanding charts is essential. Here's the basics to make smarter decisions:
1. What is a candlestick chart?
It is the most commonly used chart in the market. Each candle shows the price behavior over a period of time:
Open
Close
High
Low
Green candles indicate an uptrend; red candles indicate a downtrend.
2. How to identify trends?
Look at the direction of the chart:
Uptrend (bullish): prices increasing
Downtrend (bearish): prices decreasing
Sideways: stable movement, no clear direction
3. Support and resistance
Support: area where the price usually stops falling
Resistance: area where the price tends to stop rising
These points help predict where the market might reverse.
4. When to buy?
The best entries usually happen:
Near support
After a reversal candle (like the hammer)
When there is an increase in buying volume
5. When to sell?
The best moments to sell are:
Near resistance
After a topping candle (like the shooting star)
When volume starts to decrease
6. Use technical indicators
They help confirm signals:
Moving Average
RSI (Relative Strength Index)
MACD (Moving Average Convergence Divergence)
Conclusion:
Buy near support and sell near resistance. Use candles and indicators to make safer decisions.
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