How to Read Crypto Charts: Beginner's Guide to Technical Analysis

Understanding Candlestick Charts

Each candlestick shows four data points for a time period:

• Open: Price at the start of the period
• Close: Price at the end
• High: Highest price during the period
• Low: Lowest price during the period

Green/White Candle

Close > Open = Bullish (price went up)

Red/Black Candle

Close < Open = Bearish (price went down)

Timeframes

Timeframe	Best For
1m, 5m	Scalping (not recommended for beginners)
15m, 1h	Day trading
4h, 1d	Swing trading
1w, 1M	Long-term investing

Start with daily (1d) charts — they filter out noise.

Key Concepts

Support

A price level where buying pressure prevents further decline. Price “bounces” off support.

Resistance

A price level where selling pressure prevents further advance. Price gets “rejected” at resistance.

Trend

• Uptrend: Higher highs and higher lows
• Downtrend: Lower highs and lower lows
• Sideways: Price moves in a range

Essential Indicators

1. Moving Averages (MA)

Average price over N periods. Common: 20 MA, 50 MA, 200 MA.

• Price above MA = bullish
• Price below MA = bearish
• Golden cross (50 MA crosses above 200 MA) = very bullish

2. Volume

Number of units traded in a period.

• Rising price + rising volume = strong move
• Rising price + falling volume = weak move (potential reversal)

3. RSI (Relative Strength Index)

Measures momentum on a 0-100 scale.

• Above 70 = overbought (may drop)
• Below 30 = oversold (may rise)

Beginner Mistakes in Chart Reading

1. Over-analyzing short timeframes — use daily charts
2. Too many indicators — stick to 2-3
3. Seeing patterns that aren’t there — confirmation bias
4. Ignoring the bigger trend — always check the weekly chart
5. Trading every signal — wait for high-confidence setups