#CryptoCharts101 Charts in Digital Currencies

🔍 Your Guide to Understanding Charts in the Crypto World

1. Basic Types of Charts

Line Chart: Shows price over time, simple but lacks details.

Candlestick Chart: The most commonly used, shows opening and closing prices as well as the highest and lowest points.

Bar Chart: Similar to candlesticks but less clear.

2. Understanding Candlesticks

🔴 Red Candle = Close lower than open (Price down).

🟢 Green Candle = Close higher than open (Price up).

The wick (shadow) shows how much the price fluctuated during the candle.

3. Support and Resistance

Support: A level expected to stop price decline.

Resistance: A level expected to stop price increase.

📐 Breaking resistance = potential additional rise / breaking support = potential additional fall.

4. Trends

📈 Uptrend: Higher highs and higher lows.

📉 Downtrend: Lower highs and lower lows.

🔁 Sideways Trend: Fluctuation within a defined range without a clear direction.

5. Technical Indicators

RSI: Measures the strength of a trend (overbought/sold).

MACD: Helps identify trend changes.

Moving Averages: Determine the overall trend and improve entry timing.

6. Timeframes

1D, 4H, 1H, 15min... Each timeframe offers a different perspective.

📌 Investors prefer long timeframes, while day traders focus on short ones.