Price changes aren’t entirely random. They are more likely than not to follow patterns, which might be lengthy or short-term.

Market experts are more concerned with the price of a coin itself, rather than every circumstance that influences its price. Market behavior can be predicted because traders react the same way whenever they see a particular trend.

Six basic tenets of Dow Theory are necessary to know how to read real-time crypto charts.

Three Market Movements

  1. The major and main movement of a market is referred to as such. These are market trends that can continue anywhere between a year and several years. The primary trend might be a bullish movement or a bearish movement.
  2. The medium swing is a secondary or intermediate reaction that can last anywhere from ten to three months.

How to read cryptocurrency charts

It typically retraces between 33% and 66% of the main price change.

  • Finally, we have the brief swing or minor movement, which can last anywhere from a few hours to a month or more, depending on market speculation.
  • Crypto market charts show these market trends that will only be noticeable if you know them well. A daily minor movement in a bearish secondary response with a bullish primary movement, for example, can occur simultaneously as these three movements.

    Three Market Trends and Phases

    1. The accumulation phase is when educated investors begin buying or selling crypto despite the market’s common impression.

    How to read crypto charts

    The figures on the left-hand side (Vertical axis): This shows you the bitcoin price at any point along the chart

  • The H and L values on the blue line: These represent the high and low prices of the coin within that timeline
  • A careful study of a simple chart like this can tell you whether the market is in a bullish or bearish trend. These trends can be long term or short term, but the data they provide will ultimately dictate whether you should go for a buy or sell action.

    The Japanese Candlestick Chart

    Also known as “The Traders Choice”, the candlestick trading chart is more advanced than the line chart and provides data on not just the closing price, but also information on things such as market cap, highest and lowest prices, and volume.

    How to read cryptocurrency graph

    If you want to dive into the world of cryptocurrency trading, you’ll need to learn how to read crypto charts. For newcomers, the technical analysis (TA) that comes with these charts might be somewhat confusing.

    Learning technical analysis and all the language that comes with it is a scary thought. To make the concepts easier to understand, this comprehensive guide is filled with definitions.
    We have used layman’s language for more challenging concepts. Finally, don’t forget to check out our interesting facts and FAQs as a bonus.

    How to Read Crypto Charts

    You need to know how to read these types of charts if you want to start trading cryptocurrencies and turning your Bitcoin into cash; you can also do this through some of the popular bitcoin trading sites.

    How to read crypto candlestick charts

    ( If you are in the United States, you technically should be using the Binance US site instead)

    Getting Started With Trading Charts

    For your next step, I recommend signing up with Binance exchange.(this is an affiliate link and I earn a small commission if you sign up using my link. I appreciate your support and this comes at no additional cost to you).

    The trading charts on Binance are pretty basic and they offer a much larger amount of coins to trade versus places like Coinbase or the Voyager app (which is the best MOBILE exchange solution). I use Binance every day and it is my go-to exchange right now.
    Registering is easy and does not require any information beyond an email address. Keep in mind that Binance IS a centralized exchange so you don’t hold your own private keys here.

    How to read crypto market charts

    As the name and definition suggest, the intraday traders use charts of a short timeframe, such as hourly charts.

  • Long-Term Holders – Long-term holders might keep their spot for weeks, months, or even years. Hourly, 4-hour, daily, or weekly charts are more valuable to these investors. A 15-minute chart may be a crucial indicator for intraday traders, but it may not be so for long-term investors.
  • Did You Know? Analyzing a cryptocurrency graph based on time frames depends on the kind of trader you are.
    Many other styles of trading are prevalent along with intraday and long term. Time also plays a major role even if you are using some of these great crypto gambling websites.

    How to Calculate Market Cap

    Market capitalization is a reliable predictor of stability and can be analyzed using a cap and trade graph.

    How to read bitcoin chart

    This is why it is important to learn how to read them.

    Understanding the Trends

    A chart shows you a grouping of data plotted in a general direction, which helps you figure out an overall direction that an instrument is moving towards. This is the trend. These generally move in a series of peaks and valleys (highs and lows) and sideways (flat or horizontal). You’ve probably already heard of Bullish/Bearish movements, but if you haven’t, they simply refer to the market trend over a given period.

    A Bullish trend is a succession of upward and positive movements, while a Bearish trend is a sequence of descending lows and highs.

    How to read crypto charts binance

    In contrast a “Market” order means you buy or sell for the price the coin is at right when you place the order. The good thing about a Limit order versus a Market order is that you can set your Limit target and the order can go through at any time so you don’t have to watch it. A Market order is immediate. Even if I want to buy a coin immediately I almost always use a Limit order anyways and just set it to or very close to the current price.

    This makes you a “Market Maker” instead of a “Market Taker”. Being a Market Maker means your fees for the trade are slightly lower than if you were a Taker. You can see Binance fees here.

    The last option is a Stop-Limit order.

    This is a more complicated order and Binance actually does a good job explaining it here.

    How to read crypto charts pdf

    The line represents the coin’s performance over a specified amount of time, making it simple and easy for you to ascertain whether it is a coin you would consider investing in. Check out the example below as we look at a simple line chart from one of the most popular tracking sites, CoinFalcon.com.

    Data Source: CoinFalcon

    Here’s a breakdown of some of its basic elements:

    1. The blue jagged moving line: This plots the price of BTC as it moves along the timeline
    2. The items on the bottom (Horizontal axis): This tells you the timeline that the chart is following, which you can change by clicking on the timescale options on the top right corner of the chart (1D, 1W, 1M, 1Y).

    How to read crypto charts for dummies

    The Candlestick Chart

    While you may have seen some different types of crypto charts out there, the Candlestick Chart is the traders choice! As you can see in the chart above the chart is made up of red and green “candlesticks” which indicate open/close price, highs, & lows for the time they represent.

    The candle “body” is the colored part and it shows how much was traded as well as the price it opened and closed at for the given time-signature (more on time-signatures in a moment). The “wick” or the lines at the top and bottom indicate the lowest and highest prices during the selected time.

    The color of the candle body indicates whether the closing price was higher than the opening price represented by a green bar or lower than the opening price represented by a red bar.

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