1. Identify the chart type: Different crypto currency exchanges have different types of charts. For example, some may use a candlestick chart, while others may use a line chart or bar chart. You need to familiarize yourself with the chart type you’re looking at.
2. Identify the time frame: The time frame of a chart can range from a few minutes to several years. Understand what time frame the chart is based on (e.g. hourly, daily, weekly, monthly) and adjust accordingly.
3. Identify key indicators: Analyzing crypto currency charts requires understanding of common indicators like volume, price, and moving averages. Familiarize yourself how these indicators work and how they are used in trading.
4. Identify patterns: Look at the chart and identify any patterns you might see, like triangles or head and shoulders. These patterns may indicate future price movements.
5. Identify support and resistance levels: Support and resistance levels are areas in the price chart where the price struggle to break through. Watching for these levels can help you better predict future price movements.