Crypto currencies charts
Conventional securities exchanges operate in the same way as crypto currency exchanges. An experienced trader will have to spend a little time to look at the crypto currencies charts on BTC, ETH or some other asset but beginner subjects their money to risk. In order to understand and learn how to learn data from the price charts, you need to understand how the charts, which can be found on any existing crypto exchange, work in general.
Crypto currencies charts are an valuable tool for market analysis as they present information about prices in a graphic, visual form, which is the simplest way to understand market situation rather than text or digital information. They let you to notice the mass behavior of the crowd as well as assess the balance of power between sellers and buyers, which ultimately makes it possible to recognize the potential of transactions.
Types of exchange charts
There are three main types of graphical price display - line, bar and Japanese candle. Each of these tools provides information on the opening price, the closing price and the lowest and highest prices of the relevant period (except for a linear chart that is built only on the basis of closing prices). The charts used by traders indicate a price change for a certain time period, for example, 1, 30, 60 minutes, a day, a week, a month or a year.
In fact, charts are the history of the struggle between bulls and bears for dominance in the market. As a result of such a struggle, a huge number of transactions are made each day; all of them are necessarily reflected on the chart - one tick corresponds to one such transaction. When the price rises, it means that someone is suffering losses and someone is earning. To put it differently, crypto currencies charts are in fact not just a conditional reflection of changes in value but primarily human emotions - fear and greed, despair and hope.
You can read charts by analyzing the interaction of three independent parameters:
Analysis of trader charts is reduced to the calculation of the supply and demand ratio. And the forces of supply and demand, according to the law of the same name, are expressed through the price and the volume (the amount of transactions). Being able to read volume and price charts in time, a trader can see a change in the balance of buyers and sellers and take a favorable position beforehand - before the price starts to move.
In order to participate in crypto currencies exchange profitably, you should incorporate all your knowledge, abilities and instinct. Try to look up relevant articles as much as you can, keep an eye on other market participants. Then, after a while, you will get an invaluable experience by trial and error that will bring you substantial income.