Introduction to Cryptocurrency Charts
Price charts are essential tools for understanding market movements and making informed trading decisions.
Types of Charts
Line Charts: Simple price movement over time Candlestick Charts: Show open, high, low, close prices Bar Charts: Similar to candlesticks with different visualization
Key Candlestick Patterns
Bullish Patterns
- Hammer
- Morning Star
- Bullish Engulfing
Bearish Patterns
- Shooting Star
- Evening Star
- Bearish Engulfing
Important Technical Indicators
Moving Averages
- Simple Moving Average (SMA)
- Exponential Moving Average (EMA)
Relative Strength Index (RSI)
Measures overbought/oversold conditions (0-100 scale)
MACD
Shows momentum and trend direction
Support and Resistance
Support: Price level where buying pressure emerges Resistance: Price level where selling pressure emerges
Volume Analysis
Volume confirms price movements:
- High volume = strong conviction
- Low volume = weak conviction
Practical Tips
- Use multiple timeframes
- Combine indicators for confirmation
- Practice with demo accounts
- Keep a trading journal
