#CryptoCharts101 #CryptoCharts101 – A beginner-friendly guide to reading and understanding crypto charts like a pro 🧠📊
🪙 1. What Are Crypto Charts?
Visual representations of a coin’s price movements over time.
Help traders analyze trends, patterns, and predict future moves.
🧱 2. Candlestick Basics
Each candlestick shows 4 key data points for a given time period:
Open – Price when the candle starts
Close – Price when the candle ends
High – Highest price during the time
Low – Lowest price during the time
🟩 Green Candle = Price went up
🟥 Red Candle = Price went down
📈 3. Types of Trends
Uptrend: Higher highs and higher lows → Bullish 📈
Downtrend: Lower highs and lower lows → Bearish 📉
Sideways: Flat movement → Consolidation 😐
📊 4. Key Chart Patterns
Bullish Patterns:
Cup & Handle ☕
Inverse Head & Shoulders 🤕➡😄
Ascending Triangle 🔺
Bearish Patterns:
Head & Shoulders 😄➡🤕
Descending Triangle 🔻
Double Top ⛰️⛰️
🔍 5. Support & Resistance
Support: A price level where the coin usually stops falling.
Resistance: A level where price struggles to go above.
💡Tip: Watch how price reacts at these levels for potential breakouts or bounces.
🧠 6. Indicators to Know
RSI (Relative Strength Index):
Above 70 = Overbought
Below 30 = Oversold
MACD (Moving Average Convergence Divergence):
Helps spot trend changes and momentum.
Moving Averages (MA/EMA):
Smooths out price data to identify trend direction.
⚠️ 7. Volume Matters
High volume = Strong move confirmation
Low volume = Potential fakeout
📓 Final Tip:
Always use multiple signals together. No single pattern or indicator is 100% accurate. Combine analysis, risk management, and patience.
Want a visual infographic or cheat sheet of these tips? Just say the word!