#CryptoCharts101
If you are trading in the crypto market, understanding charts is not just an additional feature, but an essential tool that helps you make decisions based on analysis rather than intuition.
Here’s what you need to know:
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1. Candlesticks
Each candle represents price movement over a time period (like an hour or a day). It consists of:
Body: Shows the difference between the opening and closing price.
Shadows (wicks): Represent the highest and lowest price during the period.
Color: Green candle = Uptrend, Red candle = Downtrend.
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2. Support and Resistance
Support: A price level expected to prevent the price from falling further.
Resistance: A level expected to prevent the price from rising further.
Breaking either may indicate a change in direction.
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3. Trends
Bullish: Higher highs and higher lows.
Bearish: Lower highs and lower lows.
Sideways: A narrow trading range without a clear direction.
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4. Indicators
RSI: Identifies overbought/oversold areas.
MACD: Reveals momentum crossovers and direction changes.
Moving Averages: Show average movements and help determine the overall trend.
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5. Volume
Shows the number of currencies traded in a certain period. High volume during support/resistance break enhances the credibility of the movement.
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💡 Final Tip: Don’t rely on just one indicator. Combine several technical analysis tools, and always remember to manage risks.
