How to Read Crypto Charts for Beginners: Complete Guide 2026

Understanding crypto charts is essential for any trader. Whether you're using signals or trading independently, chart reading skills will improve your results significantly.

Understanding Candlestick Charts

Candlestick charts are the most popular way to view price movements. Each candle shows:

• Open - Where the price started

• Close - Where the price ended

• High - The highest price reached

• Low - The lowest price reached

Green vs Red Candles

• Green (Bullish) - Price went UP (close > open)

• Red (Bearish) - Price went DOWN (close < open)

Key Chart Patterns

1. Support and Resistance

• Support - Price level where buying pressure stops the decline

• Resistance - Price level where selling pressure stops the rise

2. Trend Lines

Drawing lines connecting highs or lows helps identify market direction:

• Uptrend - Higher highs and higher lows

• Downtrend - Lower highs and lower lows

3. Common Candlestick Patterns

Bullish Patterns (Price likely to go UP):

• Hammer

• Morning Star

• Bullish Engulfing

Bearish Patterns (Price likely to go DOWN):

• Shooting Star

• Evening Star

• Bearish Engulfing

Essential Indicators

RSI (Relative Strength Index)

• Above 70 = Overbought (might drop)

• Below 30 = Oversold (might rise)

MACD

Shows momentum and trend direction. Watch for crossovers!

Volume

High volume confirms price movements. Low volume moves are often weak.

Pro Tips

Start with higher timeframes (4H, Daily) for clearer trends

Use multiple indicators - Don't rely on just one

Practice on demo before risking real money

Keep a trading journal to track your analysis

Combine Charts with Signals

While learning to read charts, using professional signals can accelerate your learning. WolfCalls provides analysis with each signal, helping you understand why trades are recommended.

Start your trading journey with WolfCalls →