The world of cryptocurrencies is quite complicated, and it takes time to understand everything. The trading part also requires special knowledge. Unfortunately, to read crypto currencies charts and analyze other data can be quite a complex task for a new one in this sphere. However, you should know that to read charts is easier than it seems. Moreover, when you already know how to do this, it becomes very simple to understand how to trade cryptocurrencies. This article has a goal to name the most popular crypto currencies charts, and shortly describe them.
The most common charts for providing information on the changes with digital currencies are:
- Line charts;
- Bar charts;
- Candlestick charts.
Probably, the first type of charts that were used for trading were line charts. They are basic crypto currencies charts. Usually, they are utilized by long-term traders. A line chart has such name because it consists of many points that are joint in a line. These points demonstrate the traders the closing price of some currency in terms of the particular period. This type of charts isn’t very beneficial for people who are day and position participants of trade because the data the line shows isn’t full.
The bar graphs are more beneficial for people who earn money by trading cryptocurrencies. They consist of thick vertical lines that can be of one color or of two different colors, and not big horizontal lines that are attached to the vertical ones. The top part of the vertical line shows the record high price of a particular period, when the bottom part shows the record low price. The dashes present the open (left dash) and close (right dash) prices.
The next type of the crypto currencies charts has a name candlestick chart/graph. Nowadays, it is the most popular graph for work with cryptocurrencies. Generally, the graph consists of the candles or candlesticks. Every candlestick consist of two parts, which are a real body and wick/tail. The first part shows the opening point and closing point of the price. The second part shows the price’s maximum and minimum points. Usually, these candles are of two colors, green and red. The first color means that the closing point of the candle is above the opening point, and the second color means the opposite.