Topic: How do I understand Bitcoin charts? (Read 209 times)

Bitcoin charts are a simplification of changes in the price, whether this change is during a short or long time and taking into account supply, demand and psychological, the price of bitcoin follows the same pattern during a certain period of time, for example, within 4 months, you will find that the price of bitcoin is between 31k and 26k, this data They are presented in the form of charts to be easier to track and to build patterns on them in a more easy and faster way to understand. If you know the basics of technical analysis, you will easily be able to read charts.

Fundamentals have an important role to see how the market trend will go. It will always be in sync with technical analysis. Fundamentals will greatly affect the crypto market, we'll see how the market is very volatile and sensitive to various FOMO or FUD news. You only need to be active on social media and see the latest news about crypto to understand what news is trending.
and to find out how to read charts on YouTube, there are lots of basic tutorials available for beginners and some tips on using indicators for technical analysis. But it's not easy to do, it takes some practice to see how the learner develops.

How Can Charts Help You?

Charts can help traders make better decisions by allowing them to identify and analyze trends in the market. By looking at a chart, traders can identify patterns that can help them predict future price movements. This can give them an edge over other traders who may not be as aware of the data.

Charts can also be used to identify correlations between different assets. This can be helpful when trying to determine if two assets are related. For example, if the price of Bitcoin is rising, it may be beneficial to buy Ethereum as well, since they are often correlated.

I have breaking news for you mate, reading charts doesn't take an investor to know how to read them...it's all about the person that invests time to learn how to read them regardless of your financial standing.

Trading currencies or any other asset isn't any different  from trading bitcoin, but it would be wise to know what fundamentals affects BTC that can cause volatility for it.

To know how to read charts, you can make use of YouTube which has a vast library of this information,  good luck.

Again,  I will reference you to YouTube were you can rewind or fast forward content you find to have this information you looking for,  and btw you could start with babypips to have the basics ,GL.

For candlestick chart patterns.This might be helpful
https://www.youtube.com/watch?v=AOz1YPOKvEs

If you are really going for some course to follow then this one might do.
https://www.youtube.com/watch?v=eynxyoKgpng

If you want to go with the basics then you could go to babypips and finish the course there and ill assure you that you would definitely be
having that knowledge about chart reading since you've been aware about those indicators and patterns which could possibly form.

Bare in mind always that even on how well you do make out technicals but doesnt mean that you would really be precisely be able to predict
on what would happen ahead.

Candlesticks is a type of chart. It was the most common to utilize by traders because it's easy to understand and you get a lot of information you from it. There are many types of chart and I think it's not 11. As what I have seen in tradingview, there are 16 types of chart.

This is due to the fact that the price is fractal. Traders are always performing backtests to establish why the price moves in this manner and then applying it to their trades. Smart money is always hunting for where small traders normally put their stop losses, which is why no strategy works 100% of the time.

Well, that's a good point that manipulators already know about the trader's sentiments, hmm about Bitcoin's general trend I think the cycle always remains the same but it's a longer period of time in the small instances of the time market always behaves accordingly to the market developments as news and updates. For the unexpected scenarios most of the time they play their cards in the sideways moving market where traders expect a strong support and resistance level they just do exactly according to that by just making a big candle above the resistance and dump or making a big candle down t the support and then a pump. Pretty simple 

The main question is, what is the likelihood of repeating price movements made in the past? Bitcoin can repeat a general trend, but if we look at specific periods, the bitcoin price can behave quite differently. Keep in mind that manipulators know that many people study charts, so they can always use an unexpected scenario

All charts use the same type of data, it's prices at which a particular coin traded in the past. The most common chart plots all the daily prices for a given time period and connects them with a line. You can look at a chart as a visualization of the history of a coin. Different chart types use more specific data to include in the charts. For example you can include the highest and lowest price of a day to show the volatility in the charts. Technical analysis then uses these prices to find trends and trading signals to make money. A good way to find trends in the charts is to add lines with average prices on top of the main chart. Then you can see if the price drops or rises faster than the average.

I'm afraid it's rare to find an experienced trader who are making a lot of profits in most of his trades to share his knowledge on how to do such thing, because they've sacrificed a lot of money, time, and emotional health just to reached that level, and that ain't for free unless he is generous enough to share it with us.

But, candle stick patterns are easy to understand, however, it's quite confusing when you're in a actual trading platform, since your money is at risk, and mixed emotions will comes in. There's a lot of tutorial videos in YouTube but trust me, it's different when you're the one doing it. You're gonna need a lot of money and time to figure out what kind of approach fits you to make profits in trading.

as simple as I know on the bitcoin chart there will be support and resistance, we think of it as a fortress. if the support is broken, then there is greater selling power, then there is a possibility that there will be a decline again, and if the resistance is broken, then the price is likely to move up, and the trend will be up, so we can look for prices to buy. but for that you need to learn with the experience of reading charts continuously, because sometimes it doesn't match our analysis, and we have to have a strategy for that

With candle chart, you have different candle types to use. My favorite candle is Heikin Ashi that helps me to see a trend on the chart better.

Heikin Ashi - Technique definition and formula. When you turn a normal candle, default given by Trading view to Heikin Ashi candle, you will see streaks of green and red candles. Those streaks can help you to exit the market or enter the market and you can use Heikin Ashi candles as one of indicators to find market sentiment.

Do you understand that this is the basic problem when it comes to bitcoin or let's say any security. If someone knew the correct person who can surely maximize your return them everyone would be going to that very person only. If you want to learn trading yourself you should try getting knowledge of technical analysis and after that just try starting with paper trading and eventually actual trading this will build your sub conscious memories while taking trade as well.

The two basic chart view that you can understand is the line chart and the candle chart but for the sake of other trading lessons, I will advice you to use the candle chart. With candle chart, you can switch between trading timeframes and still understand what is happening and the price action, to draw your support line and the resistant line can be visible in different prefered time intervals and the candles can easily tell you what is happening in the candle, like when people are selling and the sign that the market will go upward or downward and it is even easier to use with the indicators between the chart and as well as beneath the chat.

If you can further learn about trading candles, trading chart or rather Bitcoin chart will be easy for you to understand like the hammer, the doji, shooting star and so on, there are many of them to learn, go through google and you will get link to website to learn this thing. I will have love to give you some thread in the forum but the images are currupted because of the Imgur error.

I do not know on what basis you are so sure that there are only eleven chart pattern that could help a trader to make profitable trade. Because according to my experience which was not that bad and from what I have learned I can say you do need to know about more charts. But it did not mean you have to depend on all because if you are observing a chart for BTC halving from first halving to till now then you will observe similar pattern before every halving and after every halving. Examining such charts and examining charts which have lesser time frame.

Maybe of 1 day, 1 week, 1 second or 1 hours. Such charts will reflect different candlesticks. So selection of charts depends on the time farm you are selecting and timeframe depend on the type of trading you are doing. For example, if you are a day or swing trader then you will not totally dependent on the halving chart but keeping an eye on that and having some knowledge is also necessary but in most cases you short timeframe chart patterns will do the work.

For understanding Bitcoin or any currency at first we have learn about technical analysis. When anyone learn technical analysis properly then he understand bitcoin charts. And who understand technical analysis he will understand bitoin chart. Most investosr and traders follow so it is most important. For following chart you need to use platform like mt4.

watching some udemy tutorials will be beneficial for a newbie to dive deep into reading charts. i was once a fan of the tutors in stock market trading, it really help me understand how charts are supposed to be read.

learning what the indicators are telling is important and its good to learn redundant indicators. there are paid indicators and the developers are also explaining how they work.

If you are a short term trader, understanding charts and making investment decisions on bitcoin will yield you better results than trading recklessly based on luck. If you are an investor just like me, then obviously bitcoin would rise no matter what based on the adoption criteria in the next cycle. With regards to the charts, there are multiple ones to be read for making better trading decisions. A few popular ones which I follow personally are :

1. The Stock-to-Flow Model :

Stock-to-Flow popularly known as S2F was created by twitter user PlanB back in 2019 and they have gained significant traction ever since the creation. S2F charts seemed to have worked for majority of the time and Bitcoin price movements tend to resonate them occasionally. Bitcoin is a scarce digital asset similar to Gold and the total supply is limited which can be mined completely in another 10 decades. Throughout this timeframe, the amount of new bitcoins mined will vary as like the stock which will be held by governments and individuals corporations alike. S2F ratio of Gold as of 2019 at the time of writing was 62 i.e it takes 62 years for the gold to reach the current stock. Similarly, Bitcoin had a SF ratio of 22 during the 2017 bull run. Higher the SF, higher the price hikes. You can read more about S2F in PlanB's original Medium post.

2. Historical Volatility Chart :

Long gone are the days when Bitcoin was considered to be a Medium of Exchange similar to a currency. Bitcoin has been considered to be a digital replacement of Gold and for the assumption to remain consistent, it should grow in price steadily. Too much pump and dump on a short term basis would ruin the asset class. As days passes by and more and more adoption kicks in, volatility of Bitcoin would go down drastically similar to Gold and would stabilize at sometime in the future. Coinglass Historical Volatility Chart is helpful to understand about the volatility and price actions of Bitcoin historically.

3. Candlestick Chart :

Candlestick Chart as the name suggests has been used since the age old periods for various assets throughout the history. Investing.com provides a good chart for analyzing the prices and making trading decisions of Bitcoin.

4. Rainbow Chart :

This chart was initially created to show the Bitcoin prices but over the span of years, they turned out to be relatively accurate. Later, @
Trolololo created Logarithmic Regression model which was further helpful to predict the future movements in prices. The Rainbow chart can be better viewed at blockchaincenter.net

5. Miner Capitulation Chart :

I think the explanation from bitbo.io might be suffice and provide a much better view on this chart.


This chart provides a much better idea on how prices react after the halving during each and every cycle since the charts are placed side by side.

There’s only one type of chart with different pair. You can only modify it and use trading tools to analyze data given on charts.

I think you are asking for a technical analysis for the price chart and not defferent type of chart since chart will only show you data while indicators will help you analyze it properly to have a better trading strategy for buying and selling.

You can use Investopedia guide on using indicators to help you familiarize on each one and learn how to use it.

https://www.investopedia.com/technical-analysis-basic-education-4689655

For a better understanding on how to come up on strategy, You will need to find a good mentor that offers free service or enroll trading courses on Udemy.

The answer is quite simple just learn about reading the market, Read others' analyses and predictions. Follow some crypto celebrities, for the chain analysis and big market data analysis use some platforms like Glassnode, Investopedia, and Coinglass. Now each mentioned platform has some unique features from the glass node you can analyze the on-chain activity and from the coin glass, you can check out the trading pair liquidation in different time spans.

It's quite easy these days to learn something new you can go for blogs and tutorial videos as well.