About Watch Crypto Charts

The Grow Trading Knowledge of cryptocurrency trading can seem intimidating to a new trader, with a million buzzwords to understand and master. But there’s one tool that can help even the most novice investor make better trading decisions: charts. Cryptocurrency charts are an essential part of technical analysis, which involves using historical price data to predict market trends. For many investors, including billionaire Michael Novogratz, who started his career on Wall Street before making the switch to crypto, understanding crypto charts has been critical to their success.

Candlestick charts are among the most commonly used in crypto trading, and are easy to read. Each candlestick shows the opening, closing, high and low prices for a coin over a given period of time. A green (or red) candlestick indicates that the price rose, while a candlestick with a white body (also known as a “doji”) means that the price fell. A tall wick at the top or bottom reveals the highest and lowest prices during that time interval, respectively.

A crypto chart can also display different types of indicators, including support and resistance levels, which are recognizable as horizontal lines on the chart and indicate areas where supply and demand meet. It can also show the volume axis, which displays the amount of coins traded over a certain timeframe. Traders can use these tools to make educated guesses about where the market is headed and to identify potential trading opportunities. Some charting platforms offer alerts based on price and/or technical indicators, which can help traders save time by automating their research process.