Trading cryptocurrencies and turning your Bitcoins into money requires the ability to read crypto charts. For making good crypto trades you need to know Dow Theory and Japanese candlestick charts. Every historical price, volume, and time interval is available in cryptography. A chart is used to observe investment opportunities in a digital currency based on its past price movements. By reading cryptocurrency charts, investors can identify market trends and predict the future price movements of an asset. Cryptocurrency Chart Patterns Only a few chart patterns have stood the test of time. There is no “proven” chart pattern that works better than another, unlike less subjective analytical tools. Following are the chart patterns available. Price Channels Create a series of highs and lows by creating two ascending or descending parallel lines. Prices tend to bounce between these levels of support (lower) and resistance (higher). While most traders buy lower and sell higher, breakouts and breakdowns can be influential. Ascending & Descending Triangle One horizontal line connects highs or lows, and a second sloped line connects rising highs or falling lows. In a right triangle, the price tends to break out or break down from the horizontal line in the direction of the sloped line. Head & Shoulders The Head and Shoulders chart pattern is characterized by a temporary high or low, followed by a big move higher or lower, followed by an e...
