Crypto Chart Working

Crypto chart reading or graph reading initially looks too tricky as the reader has no idea what is happening. Today, in this blog, you can read the chart like a pro trader, and this is my guarantee. First, we will divide the chart into three parts or types in which the chart works.

1. Up Trend
2. Down Trend
3. Consolidation

Up Trend

• When the market is bullish, then this type of structure is made. This is called an uptrend. Here, I am using the word bullish, which means that bull attacks and makes its opponent throw upwards, the same as bulls (buyers) make the market move upward. If we look precisely at the chart, the market makes a clear structure with the help of the higher and lows. The main point that comes to mind here is how a trader can predict the next move when an up trend appears. The answer is straightforward: when it makes a high and does not break the low, it is sure that now it will break the high and make a new higher high. Then again, it tries to break the previous high. If it does not break that high, we can predict that the higher high will be broken, and a new higher high will appear on the chart. This is how an uptrend works.

Down Trend:

• We will learn how the downtrend is made as we discuss the uptrend. When the market is bearish ( as the bear attacks to let down the opponent ), the same as the bear, the sellers are called bears as they lead the market to push down the trend. • As you can see, when the market makes a low and then tries to break the higher high, but due to selling pressure by the bears, it becomes unable to break it there, we can predict that now the market is going to make a new lower low (LL). Then it again tries to break the previous low, and when it rejects and is unable to break, then it is cleared from that point that the selling pressure is higher than the buying pressure, and now the market is going to break the lower low and will make a new lower Low(LL). This is how a downtrend appears on the chart.

Consolidation:

• Markets travel in channels. As you can see, the line on the up side works as resistance. When the market reaches there, it pulls back the market. We can also say there is more selling pressure than the buying pressure. Same as it is, there is a line on the lower side which works as a support. At support, buying pressure is more significant than selling, pulling up the market. a structure appears in which the market travels as a channel, and we call this phase of the market a Consolidation Phase.