Momentum Increasing volume of buying will push the price of a cryptocurrency higher, but for that to continue, volume must be maintained. In that way, volume can be a good indicator of price momentum. Rising prices on declining volume can indicate declining momentum and potential reversal. Falling prices on declining volume can equally signal a… Continue reading Common Volume Indicators
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Total Volume & Market Efficiency
The total volume traded for a given cryptocurrency has a direct relationship with how volatile it is. Remember, price represents the balance of opinions between buyers and sellers. If an equal amount (in terms of volume) is being bought and sold then price will be stable, but stability suggests that people’s opinion about the price… Continue reading Total Volume & Market Efficiency
Understanding crypto trading volume
What you’ll learn What does volume mean? Why is it important Common volume indicators Dangers within volume data If you’re sequentially following Learn crypto’s section on how to trade cryptocurrency, you’ll be gradually learning about the basic tools for understanding price patterns and signals. Learning how to trade cryptocurrency comes down to how successful you… Continue reading Understanding crypto trading volume
Price Direction
The chart above is the for the same period as the simple line chart shown earlier in the article, except that it is annotated with Candlesticks for each 15 minute period. A green candle tells at a quick glance that the price increased during the period in question; a red candle that price fell. For… Continue reading Price Direction
Time & Candles
In your quest to understand where price is going it’s up to you to decide the time frame within which you want to operate, remembering the distinction between Trading – short term decision – and Investing – long term positions. Charts enable you to zoom out and look at the broadest possible time scale, or… Continue reading Time & Candles
Visible Trends Linear vs Log Scale
Given the exponential increases in bitcoin’s price over a ten year period (600x) only the most dramatic changes are visible. 2017 Bull Market – $20k ATH 2018/2019 Bear Market falling below $3k Covid Crash March 2020 falling below $5k 2020/21 Bull Market – $61k ATH However, if you switch to a log scale, where the… Continue reading Visible Trends Linear vs Log Scale
Bitcoin Price Chart Basics
At the most basic level, a bitcoin price chart is a line graph on two axes illustrating price history for bitcoin trades conducted between a specific pair of currencies. Bitcoin’s price is always relative to another specific currency, known simply as a Trading Pair. Trading pairs are offered against base currencies – currencies which are the… Continue reading Bitcoin Price Chart Basics
What are crypto price charts?
What you’ll learn The basic functions of a crypto price chart How to read candlesticks What candlesticks say about the market Our previous article talked about how bitcoin’s price is generated, the role of exchanges in bringing together buyers and sellers to trade, and the kind of basic information they provide about trades. Price is… Continue reading What are crypto price charts?
Executed Trades
Once the buyer and seller have met at a point that satisfies both – either through Market or Limit Orders – a trade is executed which defines the price at that point in time. Historic trades are also available as part of a Trading Display and can provide valuable retrospective information, but the most fundamental… Continue reading Executed Trades
Exchange Depth Chart
The Order Book is tabular and fluid so can be difficult to read, though as we’;ll see serious traders don’t do things simply by eye. To help provide an easy way to interpret what the Order Book is saying, Bids and Asks and their relative amounts are visually represented in a Depth Chart. The Depth… Continue reading Exchange Depth Chart