📊 Crypto Charts 101: Read Before You Trade! 🧠
New to crypto trading? Mastering chart reading is a must. Here’s your starter guide to understanding crypto price action.
🔍 1. Candlestick Basics
Candle Type Meaning
🟩 Green/White Close > Open → Buyers in control
🟥 Red/Black Close < Open → Sellers in control
Each candle shows open, high, low, and close (OHLC) for a time period (1m, 1h, 4h, 1D, etc.)
🧠 Tip: Larger wicks = more volatility or rejection.
🧱 2. Support & Resistance (S/R)
Support: Price level where buyers step in
Resistance: Where sellers dominate
📉 Break below support? Bearish.
📈 Break above resistance? Bullish.
🔄 Old resistance can flip to support—and vice versa.
📐 3. Trendlines & Channels
Uptrend = Higher Highs (HH), Higher Lows (HL)
Downtrend = Lower Highs (LH), Lower Lows (LL)
🔺 Draw trendlines connecting at least 2 HLs or LHs.
📏 Channels = Parallel trendlines capturing price swings.
⚙️ 4. Popular Indicators
Indicator What It Does
RSI (Relative Strength Index) Measures overbought (>70) or oversold (<30) conditions
MACD Shows momentum + potential crossovers
Volume Confirms moves—rising volume = stronger breakout
🧠 Never rely on just one indicator—combine with price action.
💣 5. Chart Patterns to Know
Pattern Signal
🔺 Ascending Triangle Bullish breakout bias
🔻 Descending Triangle Bearish breakdown bias
📉 Head & Shoulders. Bearish reversal
📈 Cup & Handle Bullish continuation
Patterns need confirmation—don’t jump in early!
🚩 6. Fakeouts & Traps
Not every breakout is real. Watch for:
Low volume breakouts
Wicks above/below key levels
News-driven moves without chart structure
🎯 Wait for retests and confirmation candles.
🔑 Key Takeaways
✅ Learn candle psychology
✅ Mark S/R levels on multiple timeframes
✅ Use trendlines + indicators for confluence
✅ Avoid FOMO entries—wait for confirmation
Charts don’t predict—they help you prepare.
Master them, and you'll stop guessing… and start strategizing.
Disclaimer: This content is for educational purposes only and not financial advice. Always DYOR before trading.