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Charting & Indicators – A Beginner’s Guide
Charting & Indicators – A Beginner’s Guide
Learning how to read crypto charts is one of the most powerful steps you can take on your trading journey. This guide will walk you through the basics of charts and introduce key indicatorsℹ️ used to analyze price action.
📊 What Are Charts?
📊 What Are Charts?
Crypto charts visually represent price movements over time — helping you spot trendsℹ️, entry points, and areas of risk. The most common chart type is the candlestick chartℹ️, which shows open, high, low, and close prices (OHLC) for each time period.
🕯️ How to Read Candlesticks
🕯️ How to Read Candlesticks
Green Candle = Price closed higher than it opened (bullishℹ️).
Red Candle = Price closed lower than it opened (bearishℹ️).
Each candle shows:
Open: Where price started
Close: Where price ended
Wicks: Highs and lows during that time period
⏱️ Timeframes matter. A 1-minute chart looks very different from a daily chart. Start with the 1H (1 hour), 4H (4 hour), or 1D (1 day) for swing trades.
📐 Key Indicators to Know
📐 Key Indicators to Know
Indicatorsℹ️ help you measure momentumℹ️, volatilityℹ️, trendsℹ️, and strengthℹ️. Here are a few beginner-friendly ones:
Smooths out price over time to reveal trendsℹ️.
SMAℹ️ (Simple Moving Average): Average closing price over X days.
EMAℹ️ (Exponential Moving Average): Similar but gives more weight to recent data.
Common setups: 50-day and 200-day MA'sℹ️ to spot trend shifts.
Measures momentumℹ️ and identifies overboughtℹ️ or oversoldℹ️ conditions.
Above 70 = Overbought (potential sell)
Below 30 = Oversold (potential buy)
Shows trendℹ️ strengthℹ️ and momentumℹ️ changes.
Watch for MACDℹ️ line crossing above or below the signal line.
Shows how many coins are being traded.
Rising volume = strong interest behind the move
Low volume = weak or fading trend
📍 Support & Resistance
📍 Support & Resistance
These are price levels where the market tends to bounce (supportℹ️) or reject (resistanceℹ️).
Drawing horizontal lines on previous highs/lows helps you spot key areas.
These levels are crucial for setting stop lossesℹ️ and take-profitsℹ️.
To practice:
Go to TradingView
Load a BTC/USDT chart.
Add indicators like RSIℹ️, MACDℹ️, and MAℹ️ using the “Indicators” button.
Adjust the timeframe to see different market behavior.
✅ Try Our Recommended Tools
✅ Try Our Recommended Tools
Use what you’ve learned with our Live Calculators and Tools:
📊 Position Size Calculator
📈 Profit & Loss Calculator
🎯 Risk/Reward Ratio Calculator
🧮 Trailing Stop Calculator
📓 TCPTOOLS Trading Journal & Tools
📌 Tip: Never rely on a single indicatorℹ️. Combine tools, follow trendsℹ️, and manage risk.
📚 Next Steps
📚 Next Steps
Take a look at the rest of the guides in our Getting Started series:
Read the guides in our Strategy series:
Also please make sure you read the following guides:
🔗 Ready to trade? Sign up through our affiliate links for bonuses and discounts we've secured. You'll also be helping to support this site:
⚠️ Risk Warning: Crypto trading is risky. Never invest more than you can afford to lose. Always do your own research.
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