Understand price charts and basic technical analysis
Charts visualize price history and help identify trends. You don't need to become a trader, but understanding basics helps.
Each candlestick shows 4 data points:
- **Open**: Starting price for the period
- **Close**: Ending price
- **High**: Highest price reached
- **Low**: Lowest price reached
Green/White candle: Price went UP (close > open)
Red/Black candle: Price went DOWN (close < open)
- **1m, 5m, 15m**: Day trading (very noisy)
- **1H, 4H**: Short-term trends
- **1D, 1W**: Long-term trends (most useful for investors)
Support: Price level where buying pressure increases
Resistance: Price level where selling pressure increases
Volume: Amount traded - confirms price moves
Trend: Overall direction (higher highs = uptrend)
Moving Averages: Smoothed price over X periods
- 50-day MA: Medium-term trend
- 200-day MA: Long-term trend
- Price above MA = bullish, below = bearish
RSI (Relative Strength Index):
- Above 70 = possibly overbought
- Below 30 = possibly oversold
Charts show PAST data. They don't predict the future. No indicator is magic. Use them as one input among many, not as a crystal ball.