How to Read Crypto Charts

📈 1. Understand Candlestick Patterns

What It Means: Each candlestick shows price movement over a specific time frame (e.g., 1 hour, 4 hours, 1 day).

Green candle: Price closed higher than it opened.

Red candle: Price closed lower than it opened.

Wick: Shows the highest and lowest prices during the time frame.

Discussion:

Candlestick patterns like Doji, Hammer, or Engulfing can signal reversals or continuation, but they must be used in context with other indicators.

---

🧭 2. Identify Support and Resistance Levels

What It Means:

Support: A price zone where buying interest tends to increase.

Resistance: A zone where selling pressure often appears.

Discussion:

These levels help traders predict where price may bounce or get rejected. Drawing horizontal lines on previous swing highs/lows is a great way to find them.

---

🔄 3. Watch the Trend (Moving Averages)

What It Means:

MA(7), MA(25), MA(99) help smooth out price action.

Shorter MAs react faster; longer MAs reflect broader trends.

Discussion:

When short-term MAs cross above long-term MAs, it can signal a bullish move (golden cross), and vice versa for bearish signals (death cross).

---

📊 4. Use RSI to Gauge Momentum

What It Means:

RSI (Relative Strength Index) measures whether a coin is overbought or oversold.

Above 70 = Overbought

Below 30 = Oversold

Discussion:

RSI helps you avoid bad entries. For example, buying when RSI is 85 may lead to a quick pullback, while entries at 30-40 may be safer.

---

🔍 5. Volume Confirms Strength

What It Means:

High volume: Confirms trend strength or breakout reliability.

Low volume: Indicates weak conviction.

Discussion:

Always check if price moves are backed by volume. A breakout without strong volume is more likely to fail or fake out.#CryptoCharts101