"From Candles to Profits: Your Guide to Crypto Charts"
š Crypto Charts 101: Key Concepts
1. Types of Charts
Candlestick Chart
Shows open, high, low, and close prices for each time period.
š“ Red candle = price down, š¢ Green candle = price up.
Line Chart
Simplified view connecting closing prices over time.
Volume Chart
Bars showing how many coins/tokens traded during each time period. High volume often means strong interest.
2. Time Frames
Short-term: 1 min, 5 min, 15 min, 1 hour ā for day trading/scalping.
Medium-term: 4 hours, daily ā for swing trading.
Long-term: Weekly, monthly ā for investors and trend analysis.
3. Important Indicators
Moving Averages (MA): Smooth out price action to identify trends.
Relative Strength Index (RSI): Measures overbought or oversold conditions.
MACD: Shows momentum and trend direction changes.
Bollinger Bands: Indicate volatility and potential reversal points.
4. Patterns to Watch
Support & Resistance: Price levels where the asset tends to stop falling or rising.
Head and Shoulders: Possible trend reversal pattern.
Triangles & Flags: Indicate potential continuation or reversal.
Double Tops/Bottoms: Signs of trend change.
5. Volume & Price Action
High volume + price increase = strong bullish signal.
High volume + price drop = strong bearish signal.
Low volume in breakouts often means false moves.
š„ Pro Tip:
Combine volume with candlestick patterns and indicators for the best signals. Always consider market sentiment and news ā charts show history, not the future alone.
