$BTC main types of trading charts

Before you start identifying trends or using indicators, you need to know what type of chart you are actually looking at. Different types of charts display price data in different ways — some are very simple, while others give you more details.

Let's discuss the three most common ones you will encounter:

Line chart

If you are just starting out, line charts are the easiest to understand. They show a single line connecting the closing prices of an asset over a certain period of time. It's like plotting points at the end of each day's price and connecting those points.

Bar chart

Bar charts increase the level of difficulty. Instead of a single line, each “bar” indicates the opening price, closing price, highest, and lowest for a certain period of time.

Candle chart

This is the chart most commonly used by traders, and for good reason. Candle charts display the same information as bar charts (opening, highest, lowest, closing), but in a format that is easier to understand visually.

Which one do you take advantage of?