#CryptoCharts101
#CryptoCharts101 – How to Read Crypto Charts Like a Pro
Understanding crypto charts is a must if you want to level up your trading game. Charts help you spot trends, time entries/exits, and avoid emotional decisions. Here’s your beginner-friendly crash course:
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📊 1. Candlestick Basics
Each candlestick shows four key prices:
Open – where the price started during that period
Close – where the price ended
High – highest price reached
Low – lowest price dropped
Green candle = price closed higher
Red candle = price closed lower
🕯️ Use the 1h, 4h, daily or weekly timeframes depending on your style:
Scalper: 1m–15m
Swing trader: 4h–1D
Investor: 1D–1W+
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📈 2. Trendlines & Support/Resistance
Support: A price level where buying interest is strong (price tends to bounce here)
Resistance: A level where selling pressure dominates (price struggles to break above)
📐 Trendlines: Diagonal lines connecting higher lows in uptrends or lower highs in downtrends.
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⚙️ 3. Indicators to Know
RSI (Relative Strength Index):
Measures momentum (0–100).
Above 70 = overbought, Below 30 = oversold.
MACD (Moving Average Convergence Divergence):
Helps spot trend direction and momentum shifts.
Moving Averages (MA):
Smooth price data over time.
Common: 50 MA, 200 MA
Golden Cross = 50 MA crosses above 200 MA (bullish)
Death Cross = opposite (bearish)
Volume: Confirms price moves. Strong volume = strong conviction.
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🧠 4. Chart Patterns to Recognize
Bullish Patterns:
Ascending triangle
Cup and handle
Inverse head & shoulders
Bearish Patterns:
Descending triangle
Head and shoulders
Double top
⏳ Breakouts often occur at the end of these patterns — but always wait for confirmation.
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❗ 5. Don’t Chart Blindly
Always combine multiple tools: price action + volume + indicators.
Use risk management: even the best setup can fail.
Backtest strategies before going live.
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🛠 Tools You Can Use:
TradingView – industry standard for crypto charting