How to read crypto candlestick charts?

1. Understand the chart layout and components. A typical crypto candlestick chart contains open, high, low, and close prices for a given timeframe (e.g. 1 minute, 5 minutes, 1 hour, etc.). Each candlestick typically represents a one-day period of activity.

2. Identify trends. Candlestick charts show the changing price action over time. By viewing the patterns of price movement, traders can identify trends in price, such as uptrends or downtrends, and anticipate potential pivot points.

3. Look for patterns. Certain patterns in candlestick charts can indicate future price movements. Common patterns to look for are the ‘hammer’ and ‘doji’ which typically predict a bullish trend and the ‘shooting star’ which is generally bearish.

4. Set entry/exit orders. During active markets, traders can set entry and exit orders for positions using various order types, such as market order, limit order, and stop loss order. These orders can be used to execute trades quickly and efficiently in volatile markets.