#CryptoCharts101

# CryptoCharts 101: A Beginner's Guide to Reading Cryptocurrency Charts

Understanding cryptocurrency charts is essential for making informed trading decisions. Here's a quick breakdown of the basics:

## **1. Types of Charts**

- **Line Chart**: Simple, shows closing prices over time.

- **Candlestick Chart**: Displays open, high, low, and close prices (most popular).

- **Bar Chart**: Similar to candlesticks but uses vertical lines.

## **2. Key Elements of a Candlestick**

- **Green (Bullish) Candle**: Price increased (close > open).

- **Red (Bearish) Candle**: Price decreased (close < open).

- **Wicks/Shadows**: Show highest and lowest prices during the candle's timeframe.

## **3. Common Chart Patterns**

- **Support & Resistance**: Key price levels where buying/selling pressure increases.

- **Trendlines**: Upward (bullish) or downward (bearish) price direction.

- **Head & Shoulders**: Reversal pattern signaling a trend change.

- **Double Top/Bottom**: Indicates potential trend reversal.