#CryptoCharts101
Crypto Charts 101: A Quick Guide
Crypto charts help you understand price movements. They're mostly candlestick charts.
* Candlesticks: Each candle shows price action over a specific time (e.g., 1 hour, 1 day).
* Green Candle: Price went up (close higher than open).
* Red Candle: Price went down (close lower than open).
* Wicks: Show the highest and lowest prices reached.
* Volume Bars: At the bottom, they show how much crypto was traded. High volume means strong interest.
Key Concepts
* Support: A price level where buying usually stops a price drop (like a "price floor").
* Resistance: A price level where selling usually stops a price rise (like a "price ceiling").
* If price breaks above resistance, it can go higher.
* If price breaks below support, it can go lower.
Chart Patterns & Indicators (Quick Look)
* Common Patterns: Shapes like Head and Shoulders or Triangles can suggest where the price might go next.
* Indicators: Tools that calculate data from price and volume to give clues:
* Moving Averages (MA): Show trends.
* RSI (Relative Strength Index): Shows if an asset is "overbought" (might drop) or "oversold" (might bounce).
* MACD: Helps spot trend changes.
Reading charts helps you make smarter trading choices. Practice makes perfect!