Charts can be trusted when the market is calm and there's a clear trend. For example, if a crypto coin has been moving steadily up or down over time, the chart can help predict the next move. Charts are also useful when trading volumes are high, as that shows real interest from buyers and sellers. In such cases, patterns like breakouts, support, and resistance levels often work well and give helpful signals.
But there are times when you should not trust the chart. If there’s big news, like a government rule change or a major hack, the price can suddenly move in a way that breaks the chart pattern. Also, in low-volume markets or when social media creates hype, prices can become very unpredictable. In those cases, charts may give false signals. So it’s best to use charts along with other tools like news updates and market analysis for better decisions.
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