#CryptoCharts101

Basics of Reading Cryptocurrency Charts

1. 🕰️ Types of Charts

Candlestick: The most commonly used, showing price movement (Open – High – Low – Close) for each time period.

Line Chart: Displays the closing price over time.

Bar Chart: Similar to candlesticks but less visually clear.

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2. 🔍 Key Elements in the Chart

Element Meaning

Green Candle Price increased during the period

Red Candle Price decreased

Upper Shadow Highest price reached

Lower Shadow Lowest price reached

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3. 📈 Market Trends

Bullish: Prices are gradually rising.

Bearish: Prices are gradually falling.

Sideways: No significant price change.

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4. ⚙️ Basic Technical Indicators

Moving Averages (MA): Show the overall trend.

RSI (Relative Strength Index): Assesses whether the currency is overbought/oversold.

MACD: Measures momentum to identify entry and exit points.

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5. 📍 Common Patterns on the Chart

Pattern Indicates

Head and Shoulders Potential reversal in trend

Symmetrical Triangle Upcoming price volatility

Flag A pause before continuing in the trend

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6. 🧠 Tips for Beginners

Don't rely solely on the chart—understand the news and context.

Try analyzing charts on different time frames (5m – 1h – 1y).

Start with a demo account before real trading.