$BTC #CryptoCharts101
4 Key Points for Beginners When Reading a Chart
1. Identify the Trend
Start by spotting the overall direction—uptrend, downtrend, or sideways. Use tools like moving averages to confirm the trend and avoid trading against it.
2. Support and Resistance Levels
These are key price zones where the asset often reverses or pauses. Learning to mark these levels helps you plan better entries and exits.
3. Candlestick Patterns
Understand basic candlestick patterns like doji, engulfing, and hammer. They give quick insight into market sentiment and possible reversals.
4. Volume Analysis
Volume shows the strength of a price move. High volume supports strong trends, while low volume may signal weakness or a possible reversal.