Reading charts is one of the many activities you need to do as a cryptocurrency trader. This way you can find the best opportunities on the market. But without proper knowledge, cryptocurrency market charts are just gibberish lines with charts. So here’s a great way to read Crypto.com charts.
Technical analysis of cryptographic charts
The term “technical” refers to instruments that analyze through trading activity also for asset price reasons. It’s not just about cryptocurrencies, technical analysis only applies to trading stocks, commodities and futures. In short, technical analysis is used to predict the moment that is coming by knowing it in advance.
Technical analysis was previously pioneered by Charles Dow, who was also responsible for creating the Showtime stock index. Furthermore, it provides an overview of the six widely used principles along with the basics of forecasting market trends.
How to read Crypto.com charts
Crypto.com uses Japanese candlestick sea charts to present a graphical representation of the historical price and volume of cryptocurrencies and a four-dimensional time frame. To read this you need to have a basic understanding of general anatomy and general diagrams to get started with Japanese candlestick charts.
Knowing the anatomy of a nautical chart is a step-by-step indication of the times How to read the coding scheme . Candlestick charts are so called because they resemble similar candles. It is characterized by a solid or hollow part in the middle, it is also called the staff, and the top and top lines of the staff are called the top and bottom shadow respectively.
In the optimizer, the highest trading cost is represented by the top of the upper shadow and lots are represented by the lowest trading cost by the bottom of the lower shadow.
The range of indoor nautical candle holders is available in two colors, sapphire and dark green. The purple color (empty bar) of the candle represents the point where the closing price is below the opening price. This also means that the price of cryptocurrencies is falling.
On the other hand, a green candle (solid bar) means that the closing product was above the opening price. It also shows an upward trend in the price of cryptocurrencies.
Understanding the meaning of each pattern is the most important tool for knowing how to read Crypto.com charts. There is a V-shaped candlestick pattern that you should be aware of. You can find them in our other articles. Common patterns also include swallows, hammers, shooting stars, and dojis. The engulfing pattern is either bullish or bearish.
A bearish low indicates that sellers are struggling to cover buyers’ costs. On the other hand, a bullish decline is a situation where buyers control the causes of sellers’ costs.