#CryptoCharts101

If you are trading in the crypto market, understanding charts is not just an additional feature, but a fundamental 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 candlestick represents price movement over a specific period (like an hour or a day). It consists of:

The body: Shows the difference between the opening and closing price.

The shadows (wicks): Represent the highest and lowest price during the period.

Color: Green candle = bullish, red candle = bearish.

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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 of these may indicate a change in trend.

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3. Trends

Bullish Trend: Higher peaks and troughs.

Bearish Trend: Lower peaks and troughs.

Sideways Movement: A narrow trading range without a clear direction.

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4. Technical Indicators

RSI: Identifies overbought/oversold areas.

MACD: Reveals momentum crossovers and trend changes.

Moving Averages: Show moving averages and help identify the overall trend.

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5. Volume

Shows the number of coins traded over a specific period. High volume during a support/resistance break enhances the credibility of the movement.

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💡 Final Tip: Do not rely on just one indicator. Combine multiple technical analysis tools, and always remember to manage risk.