Trading crypto successfully requires more than intuition; understanding price charts helps you identify trends and entry points. Most crypto exchanges display candlestick charts by default. Each candlestick represents a fixed time period and shows the open, high, low and close prices. A candle is typically green if the close was higher than the open and red if it was lower. Strings extending above and below the body indicate volatility during that period.
Indicators can add valuable context. Moving averages smooth out short‑term noise and show longer‑term trends. A simple 50‑day moving average plotted alongside a 200‑day moving average can signal bullish momentum when the short‑term line crosses above the long‑term line (a golden cross). Oscillators like the Relative Strength Index (RSI) measure momentum and can suggest overbought or oversold conditions when values approach 70 or 30, respectively.
Chart patterns and support/resistance levels also inform strategy. Horizontal levels where price repeatedly bounces up or down suggest strong buying or selling pressure. Recognizable formations like head‑and‑shoulders, triangles and double bottoms can hint at potential reversals or breakouts. Always combine multiple signals and manage risk with stop‑loss orders; no indicator guarantees future price movements, but a disciplined approach improves your chances.