#CryptoCharts101 📈 #CryptoCharts101: Learn to Read the Market Like a Pro
If you want to trade or invest in crypto effectively, understanding charts is non-negotiable. Here’s a quick beginner’s guide to the basics of crypto chart reading:
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1. Candlestick Charts 🕯️
Each candle shows price action for a specific time period (1min, 1hr, 1D).
Green candle: price went up. Red candle: price went down.
Candles show:
Open
Close
High
Low
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2. Support & Resistance 📉📈
Support: A price level where buyers step in (price often bounces here).
Resistance: A price ceiling where sellers dominate (price often rejects here).
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3. Trendlines & Channels 📊
Uptrend: Higher highs & higher lows.
Downtrend: Lower highs & lower lows.
Drawing trendlines helps spot momentum.
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4. Volume 🔊
Measures how much is being traded.
High volume = strong conviction.
Spikes in volume can indicate trend continuation or reversal.
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5. Indicators 🧠
Popular technical indicators:
RSI (Relative Strength Index): Overbought (>70) or Oversold (<30)
MACD: Momentum & trend strength
Moving Averages (MA): Smooths price to show trend direction
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6. Chart Patterns 🔁
Common patterns include:
Head & Shoulders (trend reversal)
Triangles (breakouts)
Double Top/Bottom
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🧠 Quick Tips:
Start with the daily or 4H chart for clarity.
Zoom out before zooming in.
Combine price action + indicators + volume for confirmation.
Practice on tools like TradingView or CoinMarketCap charts.