How to Read the Three Types of Bitcoin Charts
To read bitcoin price charts bitcoin traders will need to first of all learn bitcoin technical analysis.
This bitcoin technical analysis study of bitcoin price movement will analyze historical bitcoin price moves using bitcoin trends and bitcoin chart patterns in an attempt to predict the next likely movement of the bitcoin price direction.
A bitcoin chart can be described as a graph representation of the bitcoin price of a crypto instrument over a specified bitcoin chart timeframe period.
The bitcoin charts use the y-axis or vertical axis to represent the bitcoin price scale and the x-axis or horizontal axis to represent time scale. Bitcoin prices are then drawn from left to right with the most recent bitcoin price being plotted at the furthest point to the right of this bitcoin chart.
The bitcoin chart can have different chart timeframes
MT4 Bitcoin Chart Time Frames
M1 for 1 Minutes Bitcoin Charts
M5 for 5 Minute Bitcoin Charts
M15 for 15 Minutes Bitcoin Charts
M30 for 30 Minutes Bitcoin Charts
H1 for 1H Bitcoin Charts
H4 for 4 Hours Bitcoin Charts
D for Daily Bitcoin Charts
W for Weekly Bitcoin Charts
M for Monthly Bitcoin Charts
MetaTrader 5 BTCUSD Chart Timeframes
M1 for 1 Minutes Bitcoin Charts
M2 for 2 Minute Bitcoin Charts
M3 for 3 Minutes Bitcoin Charts
M4 for 4 Minute Bitcoin Charts
M5 for 5 Minute Bitcoin Charts
M10 for 10 Minutes Bitcoin Charts
M12 for 12 Minutes Bitcoin Charts
M15 for 15 Minutes Bitcoin Charts
M20 for 20 Minutes Bitcoin Charts
M30 for 30 Minutes Bitcoin Charts
H1 for 1 Hour Bitcoin Charts
H2 for 2 Hours Bitcoin Charts
H3 for 3 Hours Bitcoin Charts
H4 for 4 Hours Bitcoin Charts
H6 for 6 Hours Bitcoin Charts
H8 for 8 Hours Bitcoin Charts
H12 for 12 Hours Bitcoin Charts
D for Daily Bitcoin Charts
W for Weekly Bitcoin Charts
M for Monthly Bitcoin Charts
These bitcoin chart timeframes are used to plot bitcoin price data movement over the specified bitcoin chart timeframe period and bitcoin traders can then analyze bitcoin price movements from these bitcoin charts.
Using bitcoin charts makes it easier for bitcoin traders to analyze bitcoin price movements because bitcoin traders can analyze bitcoin price trends as well as bitcoin price patterns.
Bitcoin price charts are used to analyze supply and demand for the bitcoin price movement. And changes in the supply and demand will be depicted in the bitcoin price movement.
Bitcoin technical analysis study is then used to analyze these bitcoin price movements on the bitcoin charts. Bitcoin technical analysis assumes that all the market information has been factored in the bitcoin price action movement based on supply and demand for a particular crypto instrument and this supply and demand is depicted in the bitcoin price action movement that occurs on the bitcoin charts price movement.
The Three Bitcoin Charts Types That are Used in Bitcoin Technical Analysis
The three bitcoin chart types used for bitcoin technical analysis are:
- Line BTCUSD Chart
- Bar Bitcoin Chart
- Candlestick Bitcoin Chart
Bitcoin Line Chart
Bitcoin line chart draws a continuous line from one closing bitcoin price to the next closing bitcoin price and this then depicts the movement of bitcoin price of a particular crypto instrument over a period of time on the bitcoin chart.
Bitcoin line charts do not provide bitcoin traders with a lot of details and information about bitcoin price movement and the only information plotted by this line bitcoin chart is of where the bitcoin price closed for a specific bitcoin chart timeframe period.
The bitcoin line chart can be used to interpret bitcoin trends based on the direction of the bitcoin line chart movement.
Bitcoin Bar Chart
A bar chart is used to show the opening bitcoin price, the high bitcoin price, the low bitcoin price & the closing bitcoin price.
The bar chart will depict the whole bitcoin price range for each bitcoin trading period - using the above bitcoin price data points - opening bitcoin price, the high bitcoin price, the low bitcoin price & the closing bitcoin price.
The vertical bar indicates the crypto instrument trading range as a whole for the period
The top of the bar indicates the high bitcoin price
The bottom of the bar indicates the low bitcoin price
A dash that is drawn to the left of the bitcoin price bar indicates the opening bitcoin price
A dash that is drawn to the right of the bitcoin price bar indicates the closing bitcoin price
Bitcoin Candlestick Chart
A candlestick chart is used to show the opening bitcoin price, the high bitcoin price, the low bitcoin price & the closing bitcoin price.
A bitcoin candle chart is represented in a easier to read & interpret format compared to the bitcoin bar chart.
Candle bitcoin charts represent the same information as that of a bar bitcoin chart but in a much easier to analyze format.
Bitcoin Candles have two parts: the body of the candlestick & the shadow of the candlestick
Bitcoin candlesticks have a body which is the difference between the opening bitcoin price & closing bitcoin price. The body of the bitcoin candlestick will have different colors depending on the direction of the bitcoin price.
Blue or Green Candlesticks for when bitcoin price moves up
Red Candlesticks for when bitcoin price moves down
The bitcoin candlesticks also have protruding lines above and below the body of the bitcoin candlestick - these protruding lines are known as shadows. The upper shadow represents the high bitcoin price & the lower shadow represents the low bitcoin price.
How to Read the Three Types of Bitcoin Charts
