The Six Different Types of Bitcoin Charts
What are the Different Bitcoin Chart Types?
There are several different types of bitcoin charts used in bitcoin technical analysis & these bitcoin charts are explained below.
A trader can use this bitcoin chart types tutorial to find out which bitcoin chart types are best for them to use when analysis the bitcoin market bitcoin trading price movement:
Line BTCUSD Charts
Line bitcoin charts are basic bitcoin charts that only draw a continuous line connecting closing bitcoin trading price from one bitcoin chart timeframe period to the next.
Bitcoin line chart provides bitcoin trading price data as a continuous line that connects a series of bitcoin closing prices.
The bitcoin line chart will not draw other bitcoin trading price information such as the high of the bitcoin trading price, the low of the bitcoin price & closing of the bitcoin trading price.
Bitcoin traders can also use bitcoin line charts to identify & trade bitcoin technical analysis patterns such as double tops and double bottoms.
Bitcoin traders can also use bitcoin line to identify bitcoin trends and to draw bitcoin trend lines on these bitcoin line charts.
Bar Bitcoin Charts
Bitcoin bar charts will show the bitcoin trading price action data of a particular bitcoin chart time-frame period.
The bitcoin bar chart will show high price, low price, open bitcoin trading price & close bitcoin trading price.
The bar bitcoin chart will be represented by a vertical line that represents the bar and then there will be a small dash to the left of this vertical bar showing the opening bitcoin trading price & another small dash to the right of this vertical bar showing the closing bitcoin trading price.
A bitcoin bar will continue and start plotting from where the previous bitcoin trading price bar left.
Bitcoin traders can also use bitcoin bar charts to identify & trade bitcoin technical analysis patterns.
Bitcoin traders can also use bitcoin bar charts to identify bitcoin trends and to draw bitcoin trend lines on these bitcoin bar charts.
Bitcoin Candlesticks Charts
Bitcoin candlesticks charts are used to represent all the data of the bitcoin trading price action movement which includes: high price, low price, open price and close price.
A bitcoin candlestick has two parts the body of the bitcoin candlesticks and the shadows of the bitcoin candle.
The body of the bitcoin candlestick shows the bitcoin trading price action between opening bitcoin price & closing bitcoin trading price. The body of the candlesticks will have different colors depending on the direction of the bitcoin trading price movement, blue or green candles when bitcoin trading price moves upwards & red bitcoin candles when bitcoin trading price moves down.
The length of the body of the candlesticks will determine how much bitcoin trading price movement there was between the opening bitcoin price & closing bitcoin trading price for a particular bitcoin chart time-frame period.
The lower and upper thin lines protruding out of the candlestick body are known as shadows and the bottom and top of these shadows represent the low and high bitcoin trading price of a particular bitcoin trading price period.
A lot of information can be analyzed by bitcoin trades from the body and the shadows of a bitcoin candle.
Bitcoin candlesticks patterns is a bitcoin technical analysis study that explains how to read bitcoin candlesticks and how to interpret bitcoin signals from these bitcoin candles patterns.
These bitcoin candles patterns include:
- Doji Bitcoin Candle
- Marubozu Bitcoin Candle
- Hammer Bitcoin Candle
- Inverted hammer Bitcoin Candle
- Shooting Star Bitcoin Candle
- Piercing Line Bitcoin Candle
- Dark Cloud Cover Bitcoin Candle
- Morning Star Bitcoin Candle
- Evening Star Bitcoin Candle
- Bullish Engulfing Bitcoin Candlesticks
- Bearish Engulfing Bitcoin Candlesticks
Heikin Ashi Charts
Heikin-Ashi is Japanese and means average bar.
Heikin Ashi charts are used because it's easier to identify bitcoin trends using Heikin Ashi Charts
Heikin-Ashi charts look like bitcoin candles but are calculated using a different method.
These Heikin Ashi candlestick bitcoin price point are calculated as follows:
Opening Price - Opening price is calculated as a average of the opening & closing price of the prior candle
High Price - the high price of Heikin Ashi candlestick is chosen from one of the following data points of the previous candle - high, opening price & closing price - depending on which has the highest value
Low Price - the low price of Heikin Ashi candlestick is chosen from one of the following data points of the previous candle - low, opening price and closing price - depending on which has the lowest value
Closing Price - Closing price is calculated as the average of the opening price, high price, low price and closing price of the prior candle
Heikin Ashi bitcoin charts generate bitcoin signals that are slower as when compared to bitcoin candlesticks charts and this is because of the technique of calculation used to plot the Heikin Ashi bitcoin charts.
The slower bitcoin signals generated by Heikin Ashi bitcoin charts can be used to trade more volatile bitcoin trading prices because this Heikin Ashi bitcoin charts delay in reacting to bitcoin trading prices will help prevent bitcoin traders from trading bitcoin whipsaw signals.
Heikin Ashi bitcoin charts have less bitcoin whipsaw signals because of the delay in calculation of the bitcoin prices.
Renko BTCUSD Trading Charts
Renko bitcoin charts adds a square block on the bitcoin chart when the bitcoin trading price moves by a certain specified distance.
Renko charts are also used to filter out the time when the bitcoin market is consolidating
When bitcoin trading price moves by this distance the Renko charts adds another square block.
The square block will be added in direction of the bitcoin trading price move.
Renko bitcoin charts are used to spot the bitcoin trends & trade these bitcoin trends.
Point and Figure Bitcoin Trading Charts
The point and figure charts are used to filter out the time when the bitcoin market is consolidating
Point and Figure charts are drawn with X & 0 columns that are vertical.
Point and figure charts are used to compress time using the point and figure bitcoin chart representations because point and figure adds a new X or 0 vertically rather than next to the previous point & figure & only when the point and figure calculates the bitcoin trend to have changed then a new vertical bar is then added to the right side of the point and figure charts.
Point and Figure bitcoin charts are used to spot the bitcoin trends & trade these bitcoin trends.
The Six Different Types of Bitcoin Charts Used in Bitcoin Trading
