#CryptoCharts101 **#CryptoCharts101 – How to Read Crypto Charts Like a Pro**
Crypto trading relies heavily on technical analysis, and understanding charts is key to making informed decisions. Whether you're a beginner or need a refresher, here's your guide to mastering crypto charts.
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### **1. Types of Crypto Charts**
Different charts display price action in unique ways:
- **Line Chart** – Simple, connects closing prices over time (good for trend spotting).
- **Candlestick Chart** (Most popular) – Shows **open, high, low, close (OHLC)** for a time period.
- **Bar Chart** – Similar to candlesticks but with vertical lines (less common in crypto).
- **Heikin-Ashi** – Smoothed candlesticks to filter out market noise.
📌 **Pro Tip:** Most traders use **candlestick charts** (1D, 4H, 1H timeframes) for detailed analysis.
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### **2. Candlestick Anatomy**
Each candle tells a story:
- **Green (Bullish Candle)** – Price closed **higher** than it opened.
- **Red (Bearish Candle)** – Price closed **lower** than it opened.
- **Wick/Shadow** – Shows the highest/lowest price reached during the candle’s timeframe.
- **Body** – Represents the open-to-close range.
📌 **Key Patterns to Know:**
- **Doji** (Indecision)
- **Hammer/Shooting Star** (Potential reversals)
- **Engulfing Patterns** (Bullish/Bearish reversal signals)
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### **3. Key Chart Components**
#### **A) Support & Resistance**
- **Support** – Price level where buying interest is strong (demand zone).
- **Resistance** – Price level where selling pressure increases (supply zone).
- **Breakouts** occur when price moves beyond these levels with conviction.
#### **B) Trendlines**
- **Uptrend** – Higher highs & higher lows (connect lows for support).
- **Downtrend** – Lower highs & lower lows (connect highs for resistance).
