If you are trading the cryptocurrency the first question that you face is how prepared you are as it is crucial factors that alone determines whether you are going to make money from trading or not. The foremost important fact that you should consider is that you must have access to the latest trading tools like Bitcoin price charts.
A lot of traders and experts contend that the long-term profitable trading can be done only when it is done with the help of right trading tools. Well at BitcoInvest.cc, you will find the best exchange rates and all the right tools to make the most of your Bitcoin investing. Additionally, the traders must be educated and know how to use these tools. One part of a trader’s beginning education must include learning to read Bitcoin charts.
Here it must be made clear that Bitcoin charts are a graphical way to show price movement over time, and are the beginning and foundation of all technical analysis. Apart from fundamental analysis, technical analysis becomes the most useful trading method. A lot of traders believe that for trading purposes technical analysis is better than fundamental.
Finding Out Bitcoin Price Charts
Traders believe that technical analysis is the method of applying formulas and measurements to a Bitcoin price chart in order to predict what the market will do in the future. Needless to say there are many good books available on the subject. However, the best tool these days is the videos and clips on YouTube where a lot of information is being provided.
Needless to say traders should know that there are two major types of price and time charts that the professionals use. The elements they have in common are that both show the open price, the high price, the low price, and the closing price. The time frame they are charting depends a lot upon the choice of the trader.
Using Bitcoin Price Chart for Predicting the Price Movement
Every price chart is used for one purpose and that is to know where the prices are heading to. There are bar charts that look like long or short vertical lines, with a small horizontal line on the left side, and a small horizontal line on the right. Then there are candlestick charts that are drawn showing a long or short body with a small line sometimes extending out of the top.
Candlestick charts commonly plotted in colors, usually green meaning the price moved up during that period, and red meaning the price moved down during that period.