#CryptoCharts101
1. Types of Cryptocurrency Charts
Cryptocurrency charts visually represent price movements and trading volume over time. The most common types are:
- Line Charts: The simplest form, connecting closing prices to show overall trends. Best for long-term investors but lacks detail for short-term trading.
- Bar Charts (OHLC): Show opening, high, low, and closing prices for each period. Vertical lines display price ranges, with marks indicating open/close. Useful for volatility analysis.
- Candle Charts: Most popular for cryptocurrency trading. Each "candle" shows opening, high, low, and closing prices, with colors (green/red) indicating bullish/bearish movements. Developed in Japan in the 18th century, they reveal patterns such as "shooting stars" or "hammers".
- Heikin-Ashi Charts: Smoothed candles using averaged prices to filter noise, ideal for trend identification.