#CryptoCharts101

📊 #CryptoCharts101: Basics of Reading Cryptocurrency Charts

🟢 1. Types of Charts

Line Chart: Shows only closing prices over time. Easy and clear for beginners.

Candlestick Chart: The most popular and widely used in cryptocurrency analysis.

Bar Chart: Similar to candlesticks but less visually clear.

🕯️ 2. Understanding Candlesticks

Each candlestick represents price movement over a specific time period and contains:

Body: The difference between the opening and closing price.

Upper and Lower Wicks: The highest and lowest price during the period.

Colors:

🟩 Green (or White) = Price increased (closing above opening).

🟥 Red (or Black) = Price decreased (closing below opening).

⏱️ 3. Timeframes

1 Minute, 5 Minutes, 15 Minutes: For day traders (short-term trading).

Hour, 4 Hours, Day: For analysts and medium to long-term traders.

📉 4. Key Technical Indicators

Volume: Shows the amount of trading over a specific time period.

Moving Averages (MA/EMA): Help in identifying trends.

Relative Strength Index (RSI): Indicates whether a currency is overbought or oversold.

MACD Indicator: Used to identify trends and potential reversals.

🧱 5. Support and Resistance

Support: A price level expected to stop a decline.

Resistance: A price level expected to stop an increase.