Tips to Choose the Right Crypto Platform

As a trader, it’s essential to know how to read and interpret charts. Charts are the basic foundation of all technical analysis, which traders use to analyse market data.

Traders use charts to analyse market conditions to make informed decisions on what trades to place in the crypto market. Learn about crypto using platforms like Swyftx TradingView because it is one of the essential components of trading. It provides a dynamic visual representation of price data and trends, allowing traders to make more educated speculation on future price movements.

Here’s how to read them:

There are two different types of charts available online: the Line Chart and the Candlestick Charts.

Line Chart

The Line Chart is probably the most accessible chart to read because it’s very straightforward. The line represents trend or price movement over some time. 

Traders will typically use the line chart when analysing long-term trends in the market, represented by movements over more extended periods (1 month or higher).

The Line Chart has many tools you can apply to it, like trend lines and Fibonacci retracement levels. These are all used to determine the direction and strength of a trend.

Candlestick Chart

The candlestick chart provides additional information about price changes in that period by adding two additional data points, the highs and lows, represented by the lines protruding from either side of the candlestick body.

The Candlestick chart is used to show patterns in buy supply and sell demand within a particular period. For example, if there was very little demand for Bitcoin, but there was lots of supply, the candlestick chart would represent that with a large white or green body (depending on whether it’s bullish or bearish).

Alternatively, if there were more buyers than sellers, the candle would be represented by a small body that is black (or red) because this represents bearish sentiment.

Can You Customise Your Trading Charts? How?

You can customise your charts with all types of different indicators and data. Refer to websites like Swyftx TradingView for information on charts. There are many different tools available that traders can apply to their charts depending on what they’re analysing.

For example, Bollinger Bands represent the volatility in the market by using a moving average for input. You can also use RSI and ATR indicators to measure momentum in the market, which is useful when you’re trying to predict future price movements.

There’s no need to download an additional charting package or pay any subscription fees – it’s completely free! You can customise everything from your indicator colours to the style of your chart and what you want to show on it.

What are the Different Time Frames and Which One Should You Use?

Traders use different timeframes when they expect a particular event to occur. For example, when you’re forecasting the price of Bitcoin, you’ll likely choose a timeframe in the future that aligns with when you think this will happen, typically around one month or higher.

There is no perfect time frame for analysing market data. Instead, it depends on what you’re trying to analyse, what trend you’re trying to identify, and how high-risk you consider the trading strategy to be. 

If you’re looking for short term opportunities, then the 1 hour or 4-hour chart would be most effective because these allow traders to predict short term price movements better.