For beginner investors, understanding cryptocurrency charts is key to making informed trading decisions. Charts, most commonly candlestick charts, show price changes over a specific period – minute, hour, day, or week. Each candlestick represents four basic data points: opening price, closing price, highest, and lowest within a given time frame.

The basic tools of technical analysis are trend lines, support, and resistance lines. These lines help identify where the price may stop or bounce back. Beginners should also pay attention to trading volume, which indicates the strength of a given price movement.

Popular indicators, such as RSI (Relative Strength Index) or MACD (Moving Average Convergence Divergence), help predict trend changes. Learning to read charts is the first step to effective cryptocurrency trading.