What Are Crypto Charts
A crypto chart is a visualization of the price movements of a crypto asset such as Bitcoin or Ethereum over time. Charts help traders analyze trends, determine entry/exit points, and understand market psychology.
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๐งฑ 1. Commonly Used Chart Types
Chart Type Description
Line Chart A single line connecting the closing prices of each period. Simple.
Bar Chart Displays the opening, highest, lowest, and closing prices (OHLC).
Candlestick Chart ๐ฏ๏ธ A visual version of the bar chart, most popular in crypto trading.
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๐ฏ 2. How to Read Candlesticks
Each candlestick shows price movement over a certain time period (e.g., 1 minute, 1 hour, 1 day).
Body: between the opening (open) and closing (close) prices
Green (bullish): close > open
Red (bearish): close < open
Wick (shadow): upper and lower lines show the highest and lowest prices
The size of the candle indicates the strength of the movement
Example:
If a BTC 1H candle is large and green โ it means buyers dominated the last hour.
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๐ 3. Price Trends (Trend)
Uptrend: prices make higher highs and higher lows
Downtrend: prices make lower highs and lower lows
Sideways / Consolidation: prices move within a narrow range (support & resistance)
Use trendlines or moving averages to identify trends.
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๐ 4. Important Tools & Indicators
Indicator Function
Moving Average (MA) Shows the direction of the overall trend
RSI (Relative Strength Index) Assesses whether an asset is overbought (>70) or oversold (<30)
MACD Measures momentum & potential trend reversals
Volume Indicates the strength of price movement (high volume = strong confirmation)
