#CryptoCharts101
#CryptoCharts101: Understanding cryptocurrency charts is fundamental for traders. Most use candlestick charts, which visually represent price action over a chosen timeframe (e.g., 1 hour, 1 day). Each candlestick shows the opening, closing, high, and low prices. Green candles typically indicate a price increase (close > open), while red denotes a decrease (close < open).
Key elements to look for include:
* Volume: Indicates trading activity; higher volume often confirms price moves.
* Support & Resistance: Price levels where buying/selling pressure is expected to halt or reverse trends.
* Chart Patterns: Formations like "Head and Shoulders" or "Double Tops/Bottoms" can signal potential reversals or continuations.
* Indicators: Tools like RSI (Relative Strength Index) or Moving Averages help identify momentum and potential overbought/oversold conditions.
Always consider the timeframe, as patterns on shorter intervals can be less reliable.