When trading cryptocurrencies, you cannot rely on intuition alone; technical analysis of the market is important, and charts are a tool for this. A cryptocurrency price chart visually displays all the necessary information about the development of the cryptocurrency price over a certain period of time, the mood around this asset, and its prospects.

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What is a cryptocurrency price chart?

A price chart is a graphical representation of the market price movement over a certain period of time (timeframe). It has two main axes - horizontal, which shows time, and vertical, which shows price. The selection of technical indicators and a trading system is largely determined by the period. Each cryptocurrency rate chart has its own peculiarities, the most popular types are as follows:

• Linear - looks like a continuous line connecting the closing prices of a cryptocurrency for each time period. This is the simplest, but not the most informative option.

• Japanese candlesticks - shows the opening, closing, minimum and maximum values. Candlesticks can be rising (indicate when the opening price is lower than the closing price and have a green color); falling (show the value when the opening price is higher, differ in red) or doji (the same value of the closing and opening prices).

• Bar charts are similar to candlesticks, but at each end, vertical lines are used with horizontal lines. They show the maximum and minimum price for the selected period.

It is important to analyze the data correctly. This will allow you to calculate the next steps in trading.

How to read cryptocurrency rates on a chart?

For successful trading on the stock exchange, you need to read the cryptocurrency rate chart correctly. First, let's look at its main indicators:

• Numerical values of the price.

• A ticker is the official name of an asset, for example, Bitcoin's ticker is BTC.

• A trend line is a tool for determining the direction and volume of a trend for an asset.

• Trading volume is the total amount of cryptocurrency traded over a certain period of time.

• Support line - the cryptocurrency will not fall below it.

• Resistance line - defines the maximum price an asset can reach.

Columns can be fully or partially colored or transparent. The color of a bar can be used to determine the direction of the rate movement. There are also various technical analysis figures, including a rectangle, triangle, wedge, double top, and others. Automatic chart analysis results in trend, momentum, volatility, and volume indicators.

To read the cryptocurrency growth chart, there are special applications and bots. The smaller the interval (asset price), the more accurate the display of real changes on the price chart.

How to use a cryptocurrency price chart?

A cryptocurrency exchange rate chart for a year or other period performs many tasks:

• It allows you to study the changes in the value of a coin over a certain period to know how the crypto behaves.

• Displays trading volumes, which reflects interest in the asset.

• Estimates the total value of cryptocurrencies on the market.

• It identifies trends and predicts future price movements. Traders use its chart to make decisions about buying or selling.

The mood of the cryptocurrency market depends on the behavior of people and their decisions to buy or sell. Graphical visualization remains one of the most effective ways to analyze prices to make trading and investment decisions more informed and accurate.