#CryptoCharts101 Read Markets Like a Pro on Binance
Spot Trends, Avoid Traps & Time Your Trades
Charts are your crypto trading compass. Master these 5 essentials to decode price action and make smarter moves:
1. Candlesticks: The Market’s Pulse
Green candle = Price rose (close > open).
Red candle = Price fell (close < open).
Wicks show rejection ("Price tried to go here but got rejected").
→ Binance Tip: Use TradingView on Binance for candle patterns (Hammer, Doji, Engulfing).
2. Support & Resistance: Price’s Battle Zones
Support: Price floor (demand zone).
Resistance: Price ceiling (supply zone).
Breakout = New trend potential; fakeout = Trap!
→ Binance Tool: Draw lines with Binance’s charting tools. Test breakouts with low-risk orders.
3. Volume: Fuel Behind the Move
Rising price + Rising volume = Strong trend.
Rising price + Low volume = Warning (weak rally).
Volume spike = Big player move or capitulation.
→ Binance Hack: Track volume bars under charts. Pair with BTC Dominance chart for market context.
4. Simple Moving Averages (SMAs): Trend Filters
50 SMA = Short-term momentum.
200 SMA = Long-term trend ("bull/bull divider").
Golden Cross (50 SMA > 200 SMA) = Bullish signal.
*→ Binance Strategy: Spot reversions to SMA on 4H/Daily charts for swing trades.*
5. RSI (Relative Strength Index): Gauge Greed & Fear
RSI > 70 = Overbought (sell signal).
RSI < 30 = Oversold (buy signal).
Divergence = Hidden trend reversal clue.
→ Binance Pro Tip: Avoid RSI in strong trends (crypto can stay overbought for weeks!).