#CryptoCharts101 Reading charts is essential for every crypto trader. Not only to observe price movements up and down, but also to understand the structure behind them. Here is a quick basic summary:
1. Candles
Indicate price movement within the selected timeframe (1M, 5M, 1H, etc.)
• Body = the difference between opening & closing prices
• Wick = highest & lowest prices
2. Support & Resistance
• Support = price area that is likely to bounce upwards
• Resistance = price area that is likely to drop
3. Trend Lines
Lines that indicate the direction of price — uptrend, downtrend, or sideways.
4. Volume
Indicates the market strength behind price movements. High volume = stronger movement.
5. Moving Average (MA)
Average price over a certain period. MA50 & MA200 are often used to detect trends.
Tips:
• Start from a higher timeframe (1D / 4H) to a lower one (1H / 15M)
• Focus on market structure & key areas
• Do not trade solely based on red/green candles
What is your go-to charting tool?
#Cryptochart101 #BinanceSquare #CryptoTips