How to Read Crypto Charts
Nowadays cryptocurrencies are moving all over the world. The first cryptocurrency was Bitcoin. It was developed in 2009. It was very famous and one of the trending cryptocurrencies. The main part of the using cryptocurrencies is the crypto chart. It is used to check the updates of the transactions and data. But for the newcomers, it is very difficult to understand how to read the crypto chart?
This article explains how to read the crypto chart step by step.
There are different types of charts used in cryptocurrencies some of them are given below:
1. Line Chart
2. Candlestick Chart
A. Line Chart
It is the basic type of chart. All the results are shown in Line. The different color shows a different result. It is a basic and easy chart to understand. In this chart, you can easily zoom in or zoom out the pictures. The main role of the chart is to show the time frame. There are different tools used for selecting the time frame options. It is the most important part.
B. Candlestick Chart
The name of this chart is derived from the word candle and the look and shape of the bars are totally similar to the candle that’s why it is known as Candlestick chart. Normally the shape of the candle is cylindrical. There are two colors that indicate the difference between each other. The single bar represents the war between buyers and sellers. The buyers are also known as bulls and the sellers are known as bears. It indicates the war between bears vs bull. Normally the bars are in red and green colors. Green color indicates the buyer. With an increasing green bar, the price also increased. Once the price increased that means the buyers win the battle.
The important points that are highlighted in this chart are the open and close prices. Now you must be thinking What is the open and close price? Let me explain to you.
The space between the bars is known as the body. Both the bars represent the difference between the seller and the buyer’s price. The opening price means starting price i.e. first selling price and the closing price means the last trade they sold. It totally depends on the time frame.
Now you know how to read the crypto charts, I hope you understood all the points very well. Let me know if you need any help while reading the crypto charts.