#CryptoCharts101

1. Candlestick Charts

They are the most commonly used type of charts. Each candle represents a time period (e.g., 1 hour or 1 day) and shows:

• Open Price

• Close Price

• High Price

• Low Price

If the candle is green (or white), it means the price rose during the period. If it is red, it means it fell.

2. Support & Resistance

• Support: A price level where the market tends to bounce back upward (indicating strong demand).

• Resistance: A level where the market tends to bounce back downward (indicating strong supply).

Understanding these levels helps identify entry and exit areas.

3. Trend

The general direction of price movement:

• Bullish Trend: Higher highs and higher lows

• Bearish Trend: Lower highs and lower lows

• Sideways Trend: Price fluctuates within a narrow range

A good trader does not trade against the trend.

4. Indicators

Mathematical tools added to the chart to assist in decision-making:

• RSI (Relative Strength Index): Measures whether the currency is in a state of “overbought” or “oversold”

• MACD: Identifies entry and exit points based on crossovers between moving averages

• Other indicators like Bollinger Bands and Moving Averages can enhance your decisions.

5. Chart Patterns

Formations that repeat on charts and indicate a potential direction:

• Head & Shoulders: