#CryptoCharts101
📊 #CryptoCharts101: How to Read Crypto Charts? (A Beginner's Guide)
1. What is a Chart?
A chart is a graphical representation of the price movement of a cryptocurrency over a period of time.
Common Types:
Line Chart: A simple line for the price.
Candlestick Chart (most commonly used): Candles representing price movement.
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2. Components of a Candlestick
Each candlestick represents price movement over a specific time period (e.g., 1 hour or 1 day):
🟩 Green Candle: The price increased
🟥 Red Candle: The price decreased
Each candlestick contains:
Open: Opening price.
Close: Closing price.
High: Highest price.
Low: Lowest price.
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3. Types of Trends
📈 Uptrend: Higher highs and higher lows.
📉 Downtrend: Lower highs and lower lows.
➡️ Sideways: The price moves within a limited range.
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4. Important Analysis Tools
Support & Resistance: Areas where the price often stops.
Trendline: Shows the direction of movement.
Technical Indicators:
RSI: Measures the overbought or oversold conditions.
MACD: Determines momentum and changes in trend.
Moving Average (MA): Shows the average price over a specific period.
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5. Timeframe
⏱️ 1 Minute = Fast Scalping.
🕓 1 Hour = Day Trading.
📅 1 Day or More = Long-Term Investment or Trading.
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6. Chart Patterns
🔺 Ascending / Descending Triangle
📉 Head and Shoulders
🔁 Rectangle / Channel
Useful for predicting reversals or continuation of trends.
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