#CryptoCharts101

I want to help you get a grip on candlestick patterns and the basics of chart reading, which are super important for understanding technical analysis.

**Basic Candlestick Structure:**

Each candlestick displays four main price points for a specific time period: opening price, highest price, lowest price, and closing price. The thick part, known as the body, represents the difference between the opening and closing prices, while the thin lines, or wicks, indicate the high and low points.

**Common Reversal Patterns:**

- **Doji**: When the open and close are almost the same, showing indecision.

- **Hammer/Hanging Man**: A small body with a long lower wick, pointing to a possible reversal.

- **Engulfing Patterns**: A candle that completely covers the body of the previous one.

- **Morning/Evening Star**: Three-candle formations that hint at potential trend changes.

**Continuation Patterns:**

- **Spinning Tops**: Small bodies with long wicks on each side.

- **Marubozu**: A big body with hardly any wicks, indicating strong movement.

**Chart Reading Basics:**

Support and resistance levels are very important—these are points where prices tend to bounce or break. Checking volume can help confirm signals from patterns. The time frame you’re looking at is key; what seems like a strong trend on a 5-minute chart might not mean much on a daily chart.

Successful traders often say that patterns are more useful when paired with other indicators like volume, trend direction, and overall market conditions instead of being used alone.

Would you like me to put together a visual chart showing some of these patterns, or do you want to dig deeper into a specific part of technical analysis?