#TradingMistakes101 CRYPTO CHARTS 101: Read Markets Like a Pro on Binance

Spot Trends, Avoid Traps & Time Your Trades

Charts are your crypto trading compass. Master these 5 essentials to decode price action and make smarter moves:

šŸ•ÆļøĀ 1. Candlesticks: The Marketā€™s Pulse

Green candleĀ = Price rose (close > open).

Red candleĀ = Price fell (close < open).

WicksĀ show rejection ("Price tried to go here but got rejected").

ā†’Ā Binance Tip: UseĀ TradingViewĀ on Binance for candle patterns (Hammer, Doji, Engulfing).

šŸ“ŠĀ 2. Support & Resistance: Priceā€™s Battle Zones

Support: Price floor (demand zone).

Resistance: Price ceiling (supply zone).

BreakoutĀ = New trend potential;Ā fakeoutĀ = Trap!

ā†’Ā Binance Tool: Draw lines with Binanceā€™s charting tools. Test breakouts with low-risk orders.

šŸ“ˆĀ 3. Volume: Fuel Behind the Move

Rising price + Rising volumeĀ = Strong trend.

Rising price + Low volumeĀ = Warning (weak rally).

Volume spikeĀ = Big player move or capitulation.

ā†’Ā Binance Hack: Track volume bars under charts. Pair withĀ BTC DominanceĀ chart for market context.

āš–ļøĀ 4. Simple Moving Averages (SMAs): Trend Filters

50 SMAĀ = Short-term momentum.

200 SMAĀ = Long-term trend ("bull/bull divider").

Golden CrossĀ (50 SMA > 200 SMA) = Bullish signal.

*ā†’Ā Binance Strategy: Spot reversions to SMA on 4H/Daily charts for swing trades.*

šŸ”„Ā 5. RSI (Relative Strength Index): Gauge Greed & Fear

RSI > 70Ā = Overbought (sell signal).

RSI < 30Ā = Oversold (buy signal).

DivergenceĀ = Hidden trend reversal clue.

ā†’Ā Binance Pro Tip: Avoid RSI in strong trends (crypto can stay overb