When you are trading Bitcoin, you need some trading tools like price charts, Fibonacci point calculators, pivot point calculators, etc. Moreover, as there are important factor that you should consider with great care if you are willing to become a successful, profitable trader you should consider all of them to get to better position.
This ever important factor that must be always present in the trader's portfolio is the ability to read the Bitcoin price charts. The beauty of charts, as opposed to charts used for, say, day trading stocks, is that they are pretty easy to interpret and use. Those who have been in the industry know it well that the interpretation of charts is equally important.
Here it must be added that the Bitcoin price charts are a reflection of a slower-moving, stable cryptocurrency compared to the future and daily drama of the exchange rate. However, unlike stocks, these charts rarely spend much time in tight trading ranges and have the tendency to develop strong trends.
As it has been mentioned above Bitcoin price charts are extremely volatile, traders should know how to interpret them and make a profitable trading decision. The most common types of price bars, used in trading, are the Bar Chart and the Candlestick chart. These both have their role and importance in Bitcoin trading and used variably.
For instance bar charts which are a linear representation of a period of time are used a lot for trading. They enable the viewer to see a graphic representation summarizing the activity of a specific time frame. For example they can be one minute or five-minute time. Thus, here traders are able to observe even minute movements.
As it is quite important to know that each bar has similar characteristics and tells the viewer several important pieces of information, accuracy in interpretation matters a lot. For instance, the highest point of the bar represents the highest price that was achieved during that time period and the lowest point of the bar represents the lowest price during the same period.
Needless to say regular bars display a small dot on the left side of the bar which represents the opening price of the period and the small dot on the right side represents the closing price of the period. Then there are candlesticks which are becoming popular a lot among traders for they are used a lot for technical analysis.
Further Read: Best Bitcoin Brokers to Open a Trading Account With
This ever important factor that must be always present in the trader's portfolio is the ability to read the Bitcoin price charts. The beauty of charts, as opposed to charts used for, say, day trading stocks, is that they are pretty easy to interpret and use. Those who have been in the industry know it well that the interpretation of charts is equally important.
Here it must be added that the Bitcoin price charts are a reflection of a slower-moving, stable cryptocurrency compared to the future and daily drama of the exchange rate. However, unlike stocks, these charts rarely spend much time in tight trading ranges and have the tendency to develop strong trends.
Learning the Art of Interpreting the Bitcoin Price Charts
As it has been mentioned above Bitcoin price charts are extremely volatile, traders should know how to interpret them and make a profitable trading decision. The most common types of price bars, used in trading, are the Bar Chart and the Candlestick chart. These both have their role and importance in Bitcoin trading and used variably.
For instance bar charts which are a linear representation of a period of time are used a lot for trading. They enable the viewer to see a graphic representation summarizing the activity of a specific time frame. For example they can be one minute or five-minute time. Thus, here traders are able to observe even minute movements.
Reading the Bitcoin Price Charts to See the Movement
As it is quite important to know that each bar has similar characteristics and tells the viewer several important pieces of information, accuracy in interpretation matters a lot. For instance, the highest point of the bar represents the highest price that was achieved during that time period and the lowest point of the bar represents the lowest price during the same period.
Needless to say regular bars display a small dot on the left side of the bar which represents the opening price of the period and the small dot on the right side represents the closing price of the period. Then there are candlesticks which are becoming popular a lot among traders for they are used a lot for technical analysis.
Further Read: Best Bitcoin Brokers to Open a Trading Account With
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