Why read charts?
A price chart is a visual representation of all decisions by all market participants. Price action analysis reads these traces without indicators — directly from the chart itself.
Candlestick charts
Each candlestick shows: Open, High, Low, Close. Green = price rose. Red = price fell. Wicks (shadows) show the high/low extremes.
Support and Resistance
Support: level below price where buyers historically stop declines. Resistance: level above price where sellers stop rallies. When price breaks through resistance, it becomes new support (Role Reversal).
Trends
- Uptrend: higher highs + higher lows
- Downtrend: lower highs + lower lows
- Sideways: consolidation between support and resistance
Key candlestick patterns
- Doji: open ≈ close — indecision, potential reversal
- Hammer: small body + long lower wick — bullish reversal
- Bullish Engulfing: green candle engulfs red — strong bullish signal
- Bearish Engulfing: red engulfs green — bearish reversal
Practice on TradingView: BTC/USDT, daily timeframe — identify support, resistance and trends before moving to shorter timeframes.