It is Important to Understand Crypto Charts Before Trading Cryptocurrencies - Let's Talk.
Hello Friends, How are you? I hope all of the members of steem alliance community are fine and all of you enjoy your time in this community. I'm also fine & happy by the blessing of my dear God. Here, i am again back in this community for showing my contribution with my crypto topics and showing my commitment with new lessons. I hope all my previous lessons will be helpful for all of you. Now here i come with another good and very important topic in which i will be disscus about the basics of crypto trading.
My dear friends before doing trading or analysis of any chart, it is important to learn about the basics of thia charts and get perfect results of your analysis. Trading Cryptocurrencies is not something that is learned in a day and obviously there are very basic concepts and practices every new trader should learn. So, that's cause today i decide to discuss about the basics of crypto trading and before trading to understand crypto charts are also very important. So, let's be start discussing on it.
Understanding to Chart in Crypto Trading
A Chart is basically a two-dimensional graphical representation of the vast activities in a particular market scenario. This tool takes the invisible and complicated data of an asset and makes a visual representation of these data in a manner that is easy for traders to understand. Some of these data include volume, historical price, support and resistance levels, current price movement and so on which are drawn against a particular period or in a given timeframe.
Without charts, technical analysis would be very difficult. Charts are the foundation of technical analysis and without the foundation, a structure cannot stand. If there were no charts, the visual data that help traders make rational decisions would not be readily available to them. For one, traders would not be able to know the market psychology and so would not be able to identify price patterns. Other important elements like volume and momentum would not be known and so traders would make more risky decisions.
Thanks to the fact that these charts are available, traders can carefully study them to understand how the markets function and how to take proper advantage of them to make decent profits. There are different types of charts including Line Chart, Candlestick Chart, Bars Chart, Area Chart, Heikin Ashi and so on. I have given screenshots of the Line and Candlestick Charts.
In the image above, we can see that the price and he volume are drawn with values on the vertical axes against the timeframe which has values on the horizontal axes. In these images on above, the price and momentum are drawn against the timeframe.
A bullish candle is formed when the closing price of the current period is higher than that of the previous period. A bearish candle is formed when the closing price of the current period is lower than that of the previous period. More bullish candles would mean that the market is in an uptrend while more bearish candles would mean a downtrend. An equal composition would mean a range market.
Conclusion
Crypto trading is an art that takes a gradual learning process and commitment to fully master. To avoid mistakes that could ruin a person's ambition, it is important to take the baby steps and learn from the scratch. The various concepts discussed in the class are just a few out of many things traders ought to know for a successful career.
Cc, @stephenkendal | rme | steemcurator01 Best Regards to, Faran Nabeel
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It's too difficult for me. I don't have the proper experience, but I'm trying to learn. After all, cryptocurrency is the future; digital coins are slowly being integrated into our lives. Thank you very much for a good informative post.
Yes i am happy to know that you have interest in this field. Good luck brother and keep learning with us.
Thank you very much. Good luck and all the best to you.
Dear @faran-nabeel ,
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This is an interesting post that you have shared, keep sharing quality post in the community
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Thank You.
Thank you so much dear friend for visiting and reading my post.