#CryptoCharts101 🔍 Commonly Used Chart Types
1. Line Chart
Displays closing prices over a specific time period.
Suitable for beginners because it is simple.
2. Candlestick Chart
Displays opening, closing, high, and low prices (OHLC).
Provides deeper insights into market psychology and daily sentiment.
3. Bar Chart
Similar to candlestick, but the visualization is different.
Less common compared to candlestick.
🕰️ 2. Time Frame
Short-term traders (day traders) tend to look at 1-minute, 5-minute, or 15-minute charts.
Long-term investors prefer daily, weekly, or monthly charts.
📊 3. Important Components of Candlestick Charts
Body: Shows the difference between opening and closing prices.
Wick: Shows the highest and lowest prices during that period.
Color:
Green (or white): price up.
Red (or black): price down.
📈 4. Basic Trends and Patterns
Uptrend: A series of higher highs and higher lows.
Downtrend: A series of lower highs and lower lows.
Sideways/Consolidation: Prices move within a narrow range.
Common patterns:
Double Top/Bottom
Head and Shoulders
Triangles (ascending, descending, symmetrical)
🧮 5. Popular Technical Indicators
Moving Average (MA): Filters noise and shows the trend direction.
Relative Strength Index (RSI): Measures the strength of a trend; above 70 = overbought, below 30 = oversold.
MACD (Moving Average Convergence Divergence): Identifies potential trend reversals.
Volume: Indicates the strength of a price movement. High volume = confirmation of a stronger trend.
⚠️ 6. Risks & Market Psychology
Charts are not always accurate; the crypto market is very volatile.
Emotions like FOMO (Fear of Missing Out) and FUD (Fear, Uncertainty, Doubt) often influence price patterns.
Risk management is important: stop-loss, take-profit, and fund allocation.
🧠 Tips for Beginners
Practice reading charts using a demo account.
Do not rely solely on charts – combine with fundamental analysis.