Trade Bitcoin Trading

How ==22==DoCan I Interpret a Bitcoin Chart

When it comes to trading the btcusd market the cryptocurrency chart is the basic tool used by all traders. The cryptocurrency chart will show info about a bitcoin instrument - the cryptocurrency chart will show the general direction of bitcoin prices, the chart also will show the prevailing price of bitcoin and the chart also will explain the historical movement of chart bitcoin prices.

Traders will use these trade charts to figure out where to open positions. From the chart the trader will analyze btcusd market movements using technical indicators so as to figure out the direction of the price and determine the trade transaction to open.

Traders must therefore learn how to use charts before they can start transacting in the online bitcoin market.

The following are the various things that a trader will need to know and learn about bitcoin charts.

Types of Charts

There are three types of bitcoin charts

Line BTC/USD Crypto Chart - this charting methods and techniques draws a continuous line that connects the closing bitcoin prices. For exemplification if a trader is using the 5 minutes chart then this line cryptocurrency chart will draw a continuous line that connects closing bitcoin price of the btcusd market after every 5 minutes.

Bar Bitcoin Chart - This chart uses bars to illustrate bitcoin price moves, and plots OHCL - Opening bitcoin price, High, Low, & Closing bitcoin price for that period, e.g. if the period used is 5 minutes, the bar will represent the bitcoin price data & the O H C L points for the 5 minutes.

Candle Bitcoin Charts - These are the most popular chart types because they're the most visually appealing/identifiable & they represent the bitcoin price movements in an easily identifiable way which clearly show when a market moves up or when it moves down using different colors to differentiate the direction. These candle cryptocurrency chart look like a ==22==candlecandlestick and they have a body that resembles and looks like the wax part of a candle & an upper & a lower poking and protruding line which resembles and looks like the wick of a ==22==candlestickcandle.

Bitcoin Chart Periods - Chart Time-frames

A chart will draw and plot charts based on different time periods - these are 1 minute, 5 minutes, 15 minute, 1 hour, 4 hour, 1 day, 1week and 1 month. The period used to draw chart data also is known as a chart time frame, for example the 5 min chart period is oftenly referred to as the 5 min cryptocurrency chart by traders. This 5 min time frame will represent data for the five minutes of trading, after the 5 minutes another set of information will be used to draw another representation on the chart. For exemplification if a trader is using candles chart, the data of one candle will draw information of that five minutes, after those five minute another candle will be plotted using bitcoin price data of the next five minutes - when these candle-sticks are combined they then make a graphical representation which shows the general direction of bitcoin prices often known as the trend. Traders can then use this info to make trade decisions.

Because the most often used charts are candles charts we shall discuss how to read and study charts specifically candle bitcoin charts.

How to Use Candlestick Bitcoin Charts

The candle charts uses candlestick which have different colors to represent different bitcoin price moves, blue candlesticks show bitcoin prices closed higher than they opened, red candles show bitcoin prices closed lower than they opened. This color representation is then used by cryptocurrency traders to figure out when bitcoin price has headed up/down.

The candles also show O H C L:

O - Opening Bitcoin Price

H - Highest Bitcoin Crypto Currency Price

C - Closing BTCUSD Price

L - Lowest BTCUSD ==22==CryptoCryptoCurrency Price

These bitcoin price points are represented using a formation which looks like a candle-stick, the distance between opening bitcoin price & closing bitcoin price is represented by what's referred to as body, this part looks like the wax part of a candle. High bitcoin price is represented by a poking and protruding line protruding upwards, this line resembles and looks like the wick of a candlestick, the low bitcoin price is represented by a poking and protruding line protruding downwards & it also looks like a candle wick facing down.

Candlesticks

One can also add a bitcoin indicator on the cryptocurrency chart so that they can analyze the chart market using these indicators. traders will need to place indicators on the bitcoin trading so that they can get additional information about a bitcoin trend & ==22==thereforehence be in a better position to make a more informed decision. These technical indicators can be used to predict the likely market direction that the btcusd market is likely to keep moving in whether up or down.

One can use indicators such as the moving averages and Bollinger to figure out the trend. Traders also can use other indicators like the RSI and stochastic oscillators indicators to figure out when to open positions.

Bitcoin Trend lines are also used to figure out the direction of the candle charts trends & these lines can drawn on the charts to show this direction. A crypto upward bitcoin trend will be pictured by a bitcoin trend line is moving up while a bitcoin trend that is moving down will b e shown a bitcoin trendline which is heading downwards.

To know how to draw a bitcoin trend line and how to trade using trading analysis a trader can learn about the bitcoin trend line lesson under the learn bitcoin lessons section of this web site, for indicators a trader can learn about indicators & their technical analysis on the cryptocurrency indicators section of this web site.

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