#CryptoCharts101
## Crypto Charts 101: Your Essential Map
Navigating the volatile crypto market starts with understanding price charts – your fundamental trading map. Here's the core toolkit:
1. **Candlesticks Rule:** These bars show open, high, low, and close prices per period (minute, hour, day). Green/white candles mean the price closed *higher* than it opened; red/black mean it closed *lower*. The wicks show the price range *during* the period. They reveal market sentiment and potential reversals.
2. **Support & Resistance (S&R):** These are key psychological and technical price levels. **Support** is where buying interest tends to emerge, preventing the price from falling further (a "floor"). **Resistance** is where selling pressure typically increases, capping the price rise (a "ceiling"). Breaking through these levels often signals significant momentum shifts.
3. **Volume Matters:** The bars at the bottom show trading volume for each period. High volume during a price move (up or down) confirms its strength and conviction. Low volume suggests weak momentum and potential reversals. Ignore volume at your peril.
4. **Timeframes are Key:** Always check multiple timeframes! What looks like a strong uptrend on a 5-minute chart might be just a minor bounce within a larger downtrend on the daily chart. Align your analysis (daily for trend, hourly for entries).
**Remember:** Charts show *past* and *current* price action, not the guaranteed future. Combine chart reading with sound risk management. Don't chase every signal; focus on high-probability setups confirmed by multiple factors (price, volume, S&R). Charts are powerful, but discipline is paramount.