#CryptoCharts101 📊 Crypto Charts 101: Basics Every Trader Should Know

1. Types of Charts

Line Chart

Simple chart connecting closing prices over time

✅ Easy to understand

❌ Lacks detail (no open/high/low)

Candlestick Chart

Each “candle” shows open, high, low, close (OHLC) for a set time period

✅ More data-rich

✅ Helps spot patterns/trends

❌ Needs practice to read

Bar Chart

Similar to candlesticks, but less visual. Rarely used in crypto today

2. How to Read a Candlestick

Each candle has:

Body – the range between open and close

Wick/Shadow – the high and low of the time period

Color – typically green (price went up) or red (price went down)

🟩 Green Candle: Close > Open

🟥 Red Candle: Close < Open

3. Time Frames

Each candle represents one unit of time:

1m, 5m, 15m – for short-term scalping

1H, 4H – for day trading

1D, 1W – for swing/long-term traders

Choose time frames based on your strategy

Pro tip: Check multiple time frames before trading

4. Key Tools & Indicators

Support & Resistance – Horizontal lines where price tends to bounce or reverse

Trendlines – Diagonal lines that connect higher lows (uptrend) or lower highs (downtrend)

Volume – Shows the amount traded. High volume = stronger move

Moving Averages (MA/EMA) – Smooth out price

→ 50 MA = mid-term trend, 200 MA = long-term trend

RSI (Relative Strength Index) – Shows overbought (>70) or oversold (<30) levels

MACD – Measures momentum and trend strength

5. Chart Patterns to Watch

Bullish Patterns

✅ Double bottom

✅ Cup & handle

✅ Ascending triangle

Bearish Patterns

❌ Head & shoulders

❌ Double top

❌ Descending triangle

Patterns suggest probabilities, not guarantees

6. Volume Matters

Rising price with high volume = strong move

Rising price with low volume = weak/temporary

Look for volume spikes near key support/resistance levels

🧠 Final Tips

Use charts to plan trades, not predict the future

Combine chart analysis with risk management and news awareness

Practice reading charts before trading real money.