#CryptoCharts101 How to Read Cryptocurrency Charts for Beginners

Price charts are an essential tool in crypto market analysis. Here are the basic factors you need to grasp to get started:

1. Candlestick

Each candlestick represents price movement over a specific period (1 minute, 1 hour, 1 day...).

Body of the candle: represents the opening and closing prices.

Wick of the candle: shows the highest and lowest prices during the session.

Green candle (bullish): closing price is higher than the opening price.

Red candle (bearish): closing price is lower than the opening price.

2. Trading Volume

Indicates the number of coins traded during that period. High volume often accompanies significant volatility.

3. Moving Averages (MA)

Helps determine trends. For example:

MA50: 50-day price average.

MA200: 200-day price average.

If MA50 > MA200 → long-term upward trend.

4. Relative Strength Index (RSI)

A momentum oscillator that ranges from 0–100.

Above 70: overbought (may decrease).

Below 30: oversold (may increase).

5. Support and Resistance

Support: a low price area that often creates a bounce.

Resistance: a high price area that often causes price rejection.

Note: Charts do not guarantee absolute accuracy, but understanding them helps you make smarter investment decisions. Combine with news and fundamental analysis to enhance investment effectiveness.