Reading a Crypto Chart
Candles, time frames, support, resistance — the basic chart vocabulary that lets you have a useful conversation about price.
Crypto charts look intimidating until you learn three concepts. Here they are.
1. Candles
Each candle represents one time period (1 minute, 1 hour, 1 day — whatever you choose).
- Body — The thick part. Shows the open and close prices of that period. - Wick — The thin lines above and below. Show the high and low of the period. - Green — Close was higher than open. - Red — Close was lower than open.
A long green candle with a small wick means buyers won decisively. A red candle with a huge upper wick means buyers tried to push higher and got rejected.
2. Time frames
The same chart looks completely different on the 1-minute vs the 1-day. Match your time frame to your decision:
- Swing/position trades: daily (1D) or 4-hour (4H). - Day trades: 15-minute (15M) or 1-hour (1H). - Scalps: 1- or 5-minute.
Zoom out before you act. A "huge dump" on the 5-minute is often a tiny blip on the 4-hour.
3. Support & resistance
- Support — A price level where buyers have stepped in repeatedly. Acts like a floor. - Resistance — A price level where sellers have stepped in repeatedly. Acts like a ceiling.
Lines drawn through these levels are the foundation of most chart analysis. A "breakout" is price piercing through resistance; a "breakdown" is price falling through support.
Beyond the basics, indicators like RSI, MACD, and moving averages help confirm what the candles are telling you — but mastering candles + time frames + S/R alone will outperform most retail traders.