How to read bitcoin candlestick chart (no experience requires)

key takeaways

Bitcoin candlesticks are a popular tool among bitcoin traders as they are simple to use and introduce in an intuitive manner to understand market spirit and trends.
Bitcoin candlesticks are an old device. Rice trader Honma Muneisa invented her as the 18th century in Japan. He was introduced in Western Financial Markets in the late 1980s.
They help you understand the pattern of acceleration and recession in technical analysis. This knowledge will start you with bitcoin trading.
They should not be your only tool to make informed decisions. Mix them with other bitcoin technical indicators, such as MAS (Moving Average) or RSI (relative power index).

If you are new to bitcoin (BTC) Trading, you may be surprised when to buy or sell. Candlestick charts, such as bars or line graphs, have time on the horizontal axis, while the price data appears on the vertical axis.

They provide one Quick eye on price movements When compared to other charts. You can quickly see the highest and lowest prices of a property within a specific time limit. It also shows the prices of opening and closing.

Here are some bitcoin trading tips Help you startNo experience needed; This is your Go-to Crypto Candlestick Chart Tutorial, which is perfectly suited for beginners.

Why analyze bitcoin price chart

Technical analysis is an essential and integrated strategy for business markets. When bitcoin (BTC) Started lifting and prices rose more, Crypto investors started using trading strategies from traditional markets such as candlesticks.

For bitcoin Technical analysis basicsPlatforms such as tradingviews provide several charts and technical indicators. These devices are easy to use, even for beginners. Tradingview Crypto charts can be candlestick, bar or line charts. Here the candlestick chart has been observed to help start with bitcoin trading.

Bitcoin guiner guide for candlestick chart

Candlestick Chart is a milestone in technical analysis and the first step to understand Bitcoin chart. They are an essential tool to quickly assess price movements and market trends in short term.

They represent the price trends of bitcoin on a chart in a specific period, such as one hour, four hours or a day, to help traders make better decisions.

Why use candlesticks?

They help traders imagine price movements over time.
They help identify fast, recession or consolidation spirit.
They help in spot patterns such as reversal or continuity to predict future price movements.

A candlestick represents four major value points:

Inauguration Price at the beginning of the period
Conclusion Price at the end of the period
Highest Price reached during period
All time low The price reached during the period.

A candlestick is made of one BodyHeavy part between open and close prices.

It is green when the price grows rapidly, and the closing price exceeds the initial value. It is red when the closing price is less than the initial value, so the price is in the movement of a recession because it goes down.

Body size shows strong purchases and sales pressure when it is long. This indicates uncertainty when it is small.

A candlestick also has Vicks, or shadow. They are thin lines above and below the body that reflect the highest or lowest prices during the relevant trading frame.

Here is a useful example that can help you understand it better. Suppose you are analyzing a four -hour chart using candlesticks, and the initial price of bitcoin is $ 90,000. The closing price is $ 93,500, with a high of $ 95,000 and a high of $ 88,700.

In this example, the candlestick will appear as a green body from $ 90,000 to $ 93,500. One upper Vick brought $ 95,000 and a low Vik to $ 88,700.

Benefits of bitcoin candlestick chart

Bitcoin candlestick charts provide many advantages, including:

Candlestick charts provide you with a quick view of market spirit and value movement. They show whether the market is positive or negative and how strong this feeling is.
You can choose different timeframes based on your trading style, whether you are Day merchant, swing trader or long -term investor,

For example, one minute chart works well for scaling, while the daily chart is better for long -term investors.

Since the crypto markets are open in 24 hours a day, open and close value reflects the beginning and end of the chosen deadline.

Introduction to advanced crypto charting techniques to trade BTC

Candlestics is a great way to start bitcoin business. They give you a quick look at market trends and help predict price movements. Once you know basic charts and skills, you can detect advanced techniques. For example, Moving average Better investment can help you make decisions.

Here some of the best equipment bitcoin traders have been used to take advantage of technical analysis, volume and market psychology. These strategies give traders sometimes an edge in the changing crypto market.

1. Fibonacci Retress

Fibonacci retracement is a technical analysis tool used to spot the price targets with potential support and resistance levels.

To use this method, draw a major high and low -adding lines on the chart. Then, calculate the retracement level using fibonacci ratio such as 23.6%, 38.2%, 50%and 61.8%. You can use Fibonacci Retress for confirmation when connected with trendline or moving average.

2. Volume profile

Volume profile is another tool for technical analysis. This shows the trading volume for value rather than time. To know where trading is done, traders help to see major price levels. These levels often create strong support and resistance fields.

3. Elliot Wave Theory

Elliot Wave Theory Market is a prediction model of price movements based on psychology and wave patterns. According to the principle, the market moves in the trends of five waves, followed by three waves, reflecting the merchant spirit with each wave.

4. Other indicators

Relative Strength Index The most common is one of the charting indicators. It measures the strength of price movements up and down over the bitcoin over time.
Simple moving average (SMA) Over time indicates the average price of a property, which can help you understand the overall value movement of bitcoin.
Exponential moving average (EMA) There is a better option for SMA to identify short -term trends. Like SMA, EMA shows you the average price of a property over time, but EMA focuses more in recent times.

Caution! Reading bitcoin candlesticks or any other chart is a great first step towards understanding market behavior, but remember that charts do not guarantee results. Always mix technical insights with risk management, and do more trade than doing more than ever.

There are no investment advice or recommendations in this article. Each investment and business move include risk, and readers should conduct their own research while taking decisions.