#CryptoCharts101 What charts should cryptocurrency investors use?

Many investors and traders are exploring ways to profit from cryptocurrencies. Being familiar with technical analysis is important if an investor wants to trade cryptocurrencies.

Charts are the main tool of the technician, and there are many different types. Their purpose is to provide a visual representation of price action.

Line charts

Line charts are the most basic type of chart used in technical analysis. They usually use a single data point: the closing price. To identify the trend, a series of closing prices is plotted on a chart and connected to form a line.

BTC Bar Chart

Bar charts (open, high, low, close chart)

Bar charts contain more information than line charts. The open, high, low, and close values are used for each bar plotted on a chart. These charts are commonly referred to as OHLC (open, high, low, close).

Candlestick charts

Like bar charts, candlestick charts use the open, high, low, and close, but their representation is more visual and has become very popular among traders. In fact, candlestick charts are one of the most popular in the West and are available on all trading platforms.

Support and Resistance Levels

Support and resistance levels are important and recognizable on a chart, where supply and demand converge. Learning to recognize them can help the trader enter and exit successfully.

Resistance

Resistance levels are formed when supply matches demand. In an uptrend, prices rise until they reach a level where demand no longer exceeds supply.