Basic Concepts for Understanding Cryptocurrency Charts 📈
Hello Binance Community! 👋
Do cryptocurrency charts seem confusing? Don’t worry! Understanding them is essential for every trader. Here are 3 basic concepts that will help you read charts with confidence:
1. Candlesticks (Candlesticks) 🕯️
Each candlestick represents a time period (minute, hour, day) and tells you: Opening and closing price, and highest and lowest price. A green candle means an upward trend (closing higher than opening), and a red candle means a downward trend.
2. Support & Resistance Levels (Support & Resistance) 🛡️
Support: A level where the price tends to stop falling and rise (like a "floor").
Resistance: A level where the price tends to stop rising and fall (like a "ceiling").
These levels help you determine potential entry and exit points.
3. Trading Volume (Trading Volume) 📊
Trading volume shows the number of times an asset is traded. High volume indicates strong interest and reliable price movement, while low volume may indicate weak movement. A breakout accompanied by high volume confirms the strength of the movement.
Understanding these three concepts gives you a strong foundation. Start practicing them and you’ll notice the difference!
What concept was the most difficult for you at first? Share with us in the comments! 👇