Price charts can look intimidating, but the basics are simple. Learning to read one helps you understand what is happening without falling for hype or fear.<\/p>\n
Most charts use candlesticks<\/em>. Each candle covers a period of time (a minute, an hour, a day) and shows four things: where price opened, where it closed, and the high and low in between. A green candle usually means it closed higher than it opened; red means lower. Switching the timeframe changes the story \u2014 a red hour can sit inside a green month.<\/p>\n Volume shows how much was traded in a period; a big move on thin volume is less convincing than one backed by heavy trading. Market capitalisation \u2014 price multiplied by circulating supply \u2014 matters more than price alone. A “cheap” coin at a few cents can have a larger market cap than a coin priced in the thousands, because supply differs enormously.<\/p>\n A chart shows what has<\/em> happened, not what will<\/em>. Patterns and indicators are tools for framing risk, not crystal balls, and short-term moves are dominated by noise. Beware anyone promising certainty from a chart.<\/p>\nVolume and market cap<\/h2>\n
What charts can’t tell you<\/h2>\n