How to Read Bitcoin Chart for Beginner Traders
Bitcoin charts are used to illustrate the bitcoin price movement of a crypto instrument. This bitcoin price movement is plotted on a bitcoin chart and bitcoin traders can analyze the bitcoin chart patterns on the bitcoin chart so as to determine when to open a buy bitcoin trade or a sell bitcoin trade transaction.
Bitcoin trading charts can be used by bitcoin traders to gain a better understanding of the bitcoin price movement based on analyzing past bitcoin price data - this bitcoin price data analysis is then used by bitcoin technical analysis traders to predict the next likely future bitcoin price direction.
How to Get Bitcoin Charts
Bitcoin charts are provided for on the bitcoin trading platforms such as the MT4 and MT5 platforms.
To get bitcoin charts on MT4 and MT5 platforms:
MT4 - To display the bitcoin chart in MetaTrader 4 platform follow the step below:
- Go to the Market Watch on the Top Right of the MT4 Bitcoin Trading Platform
- Select The Crypto Instrument you want to trade
- Right Click on this Crypto Instrument
- From the Pop Up Menu Select Open Bitcoin Chart option to open the bitcoin chart on MT4
MT5 - To display the bitcoin chart in MetaTrader 5 platform follow the step below:
- Go to the Market Watch on the Top Right of the MT5 Bitcoin Trading Platform
- Select The Crypto Instrument you want to trade
- Right Click on this Crypto Instrument
- From the Pop Up Menu Select Open Bitcoin Chart option to open the bitcoin chart on MT5
How to Interpret Bitcoin Charts
Bitcoin charts price movements can be interpreted using bitcoin trend analysis & bitcoin patterns technical analysis.
Bitcoin trend analysis will determine if the bitcoin prices are moving in an upward bitcoin trend or a downward bitcoin trend.
Bitcoin chart patterns will try to identify commonly repeating bitcoin chart patterns so as to try and determine what is the next likely bitcoin price direction based on the technical analysis of these commonly repeating bitcoin price patterns.
The three most commonly used bitcoin charts are:
Line Charts - bitcoin line chart is a line connecting one closing bitcoin price & the next. Line chart does not give much information about bitcoin price movement compared to other bitcoin chart types.
Bar Charts - bitcoin bar charts show open, high, low and close of bitcoin price - OHCL. Bitcoin bar charts provide bitcoin traders with a little more information than bitcoin line charts.
Within the bar the opening price, the high price, the low price and closing price are represented.
The vertical line of a bar chart shows the bitcoin price range for a particular bitcoin price period the top of this vertical bar shows the high of the bitcoin price while the bottom of this vertical bar shows the low of the bitcoin price, two horizontal lines one to the left shows opening bitcoin price and one on the right shows the closing bitcoin price.
Candle Stick Bitcoin Trading Charts - bitcoin candlestick charts show the opening bitcoin price, the high bitcoin price, the low bitcoin price & the closing bitcoin price.
The opening and closing price are used to determine when a bitcoin candle is bullish or bearish.
Bullish bitcoin candlestick is when the bitcoin close price is higher than the bitcoin open price.
Bearish bitcoin candlestick is when bitcoin close price is lower than the bitcoin open price.
How to Read Bitcoin Chart for Beginner Traders - How to Analyze Bitcoin Charts
