How to Read a Crypto Price Chart — The ONLY 5 Things You Actually Need to Know.
I see beginners trying to learn 50 indicators at once and it paralyzes them. The truth? You only need to understand 5 things to read charts profitably.
THING 1 — SUPPORT AND RESISTANCE
Support: A price level where buyers consistently show up (price bounces off it)
Resistance: A price level where sellers consistently appear (price gets rejected)
How to find them: Look for price levels where the chart touched and reversed multiple times
Rule: The more times a level is tested, the MORE important it is
THING 2 — TREND DIRECTION
Uptrend: Each high is HIGHER than the previous high, each low is HIGHER than the previous low
Downtrend: Each high is LOWER, each low is LOWER
Sideways: Roughly equal highs and lows
Rule: Always trade in the direction of the trend
THING 3 — VOLUME
Volume confirms moves. Big price move + big volume = REAL move
Big price move + low volume = FAKE move (probably reverses)
Rule: Never trust a breakout without volume confirmation
THING 4 — CANDLESTICK PATTERNS (Just 3)
Doji: Indecision — market might reverse
Long green candle with high volume: Strong buyers in control
Long red candle with high volume: Strong sellers in control
THING 5 — THE 200-DAY MOVING AVERAGE
Price above 200 MA = bull market conditions
Price below 200 MA = bear market conditions
Price crossing 200 MA = MAJOR signal
Try Your Luck: $RAD $WLD $ENA
That's it. Master these 5, and you're ahead of most retail traders.
Which of these 5 is most confusing? I'll do a deep dive post on it tomorrow!
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