Lesson 6: How to Read a Crypto Chart – The Secret Weapon of the Real Trader
If you want to succeed in trading, you must know how to read charts.
They tell you when to buy, when to sell, and especially when NOT to move.
Today, I will show you the simple basics, without any hassle.
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1. Japanese Candlesticks (or candles) 🕯️
Each candle represents the price movement over a period (e.g., 5 min, 1h, 1 day).
A candle shows you:
Opening price
Closing price
Highest price
Lowest price
👉 Green = the price has gone up
👉 Red = the price has gone down
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2. Timeframe
It is the duration that each candle represents.
Timeframe Usage
1min to 15min Scalping / quick trades
1h to 4h Moment analysis
1D (1 day) Long trends
👉 For scalping, we mainly use the 5 min, 15 min, sometimes 1h for an overview.
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3. Key Levels (supports and resistances)
Support: a level where the price has bounced several times → good buying zone
Resistance: a level where the price has often stalled → selling or caution zone
💡 When the price breaks a resistance, it can become a support.
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4. Volume 📊
It shows how many people are buying or selling.
High volume = strong movement
Low volume = the market is calm or uncertain
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5. Simple example of entering a trade:
The price bounces 2 times off a clear support
The volume increases
The RSI (we will see this later) is in a good area
➡️ You enter a buy (BUY) with a reasonable TP and a SL just below the support.
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What we do not do:
❌ Enter randomly
❌ Buy because it is already rising too fast (FOMO)
❌ Trade without identifying key levels
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👉 Next lesson (Lesson 7):
Essential indicators: RSI, EMA, MACD – How to use them to confirm a good trade
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