#CryptoCharts101 CryptoCharts101 📊🧠

Learn to Read the Charts, Not Just the Hype

Understanding crypto charts is essential for spotting trends, timing entries, and avoiding bad trades. Here’s a beginner-friendly guide to reading and using charts effectively.

🕰️ 1. Candlestick Basics

Each candlestick shows price action for a specific time frame (1m, 1h, 1d, etc.):

Body: Between open and close prices.

Green (or white): Price closed higher than it opened.

Red (or black): Price closed lower than it opened.

Wicks (Shadows): Show the highest and lowest prices in that period.

💡 Tip: Zoom out for the big picture (1D/1W), zoom in for timing entries (15m/1h).

🧭 2. Support & Resistance

Support: A price level where buying pressure tends to stop a drop.

Resistance: A price level where selling pressure tends to stop a rise.

💡 Tip: The more times a level is tested, the stronger it becomes.

📈 3. Trend Lines & Channels

Uptrend: Higher highs + higher lows 📈

Downtrend: Lower highs + lower lows 📉

Sideways (Range-bound): Price bounces between horizontal support/resistance

💡 Tip: Trade with the trend, not against it.

🔧 4. Indicators 101

Here are a few of the most common technical indicators:

RSI (Relative Strength Index):

Measures momentum. Overbought >70, oversold <30.

MACD (Moving Average Convergence Divergence):

Helps spot trend changes via crossover signals.

Moving Averages (MA):

SMA (Simple MA) & EMA (Exponential MA)

Common: 50 MA, 200 MA — used to identify bullish/bearish trends.

💡 Tip: No indicator is perfect. Combine them with price action for better decisions.

📊 5. Volume Analysis

Volume shows how much of the asset was traded.

High volume = stronger conviction behind a move.

Low volume breakouts are usually fakeouts.

💡 Tip: Look for volume spikes on breakouts or breakdowns.

🧠 6. Chart Patterns (Price Action)

Some classic patterns to know:

Bullish: Cup & Handle, Ascending Triangle, Inverse Head & Shoulders