#CryptoCharts101 # **7 Effective Tips to Read Crypto Charts for Beginners**

## **1. Understand Basic Chart Types**

- **Candlestick chart** (most popular): shows open, high, low, close

- **Line chart**: only displays closing prices

- **Heikin-Ashi**: smoothed version of candlestick

*"Start with 1-hour or 4-hour candlestick before switching to shorter timeframes"*

## **2. Recognize Key Support & Resistance**

- **Support**: price level that is hard to break below

- **Resistance**: price level that is hard to break above

- **How to identify**:

- Look at price areas that bounce multiple times

- Use horizontal lines to mark

## **3. Use Simple Moving Average**

- **MA 50** (blue line): medium-term trend

- **MA 200** (red line): long-term trend

- **Important signals**:

- Price above MA = uptrend

- Price below MA = downtrend

- Golden Cross (MA 50 above MA 200) = bullish signal

## **4. Analyze Trading Volume**

- **Volume increases** + price rises = strong uptrend confirmation

- **Volume decreases** while price rises = warning weak trend

- **Volume spike** = often a sign of reversal

## **5 Important Candlestick Patterns to Learn**

1. **Hammer** (bottom of downtrend) = potential up reversal

2. **Shooting star** (top of uptrend) = potential down reversal

3. **Bullish engulfing** = strong up reversal signal

4. **Bearish engulfing** = strong down reversal signal

5. **Doji** (open-close price same) = sign of uncertainty

## **6. Combine with RSI**

- **Overbought** (RSI >70): price may drop

- **Oversold** (RSI <30): price may rise

- **Divergence**:

- Price makes higher high, RSI lower high = warning downtrend

- Price makes lower low, RSI higher low = warning uptrend

## **7. Start from Large Timeframes to Small**

1. Analyze **weekly chart** for major trends

2. Check **daily chart** for confirmation

3. Use **4h/1h chart** for entry point

4. <15m timeframe only for scalping

## **Bonus Tips:**

✅ **Use a logbook** to record analysis vs reality

✅ **Don't over-trade** - wait for the perfect setup

✅ **Combine fundamental analysis** for confirmation

*"Charts provide clues, not guarantees. Risk management is key"*

**Recommended Tools:**

- TradingView for analysis

- CoinMarketCap for market data

- Binance/Kucoin for real-time chart

Hope this helps! 🚀 Start with a small capital while continuing to learn chart patterns