Reading Price Charts & Indicators

Candlestick charts are the standard way to visualize crypto prices. Each 'candle' represents a specific time period and shows four key data points: the opening price, the closing price, the highest price, and the lowest price. Green candles mean the price closed higher than it opened (bullish). Red candles mean the price closed lower (bearish). The 'body' of the candle shows the open-to-close range, and the thin lines (called 'wicks') show the extremes.

Moving Averages show you the average price over a certain period. A 50-day MA tells you the average price over the last 50 days. When the price is above its moving averages, that's generally bullish. When it's below, that's bearish. Traders watch for 'crossovers', when a short-term MA crosses above a long-term MA, it's called a Golden Cross (bullish). When it crosses below, it's a Death Cross (bearish).

RSI (Relative Strength Index) measures momentum on a scale from 0 to 100. Above 70 is often considered 'overbought', the asset may have risen too fast. Below 30 is 'oversold', it might be due for a bounce. But in strong trends, RSI can stay overbought or oversold for extended periods. Never use RSI alone, combine it with other signals. MACD uses moving averages to show momentum shifts, and volume tells you how many people are actually trading.

Here's the most important advice: don't overload your charts with dozens of indicators. Pick 2-3 indicators that you understand well and use them consistently. The real skill in trading is reading price action, understanding what the candles themselves are telling you about supply and demand. Indicators just help you interpret that story more clearly.