Interested in Learning how to read trade charts

Hey everyone, my name is Gabriel. I have been investing in cryptocurrency for the past 6 months but have not been having much luck. I think I am buying low and when I finally do buy, my cryptocurrency seems to depreciate all the time. I would like to learn actually what I should be doing and how to read charts to know when to invest and when to dump.

Yes, I agree you need to learn how to trade. It’s not like shopping at a supermarket and getting a price reduction that you snap up as a bargain. Quite the opposite in fact.

A long held trading philosophy is to buy when the price is moving up, and sell when the price is moving down. Betting against the trend is a risky endeavour which is only suitable for experienced traders who have been round the block many times.

Candle chart reading is an enjoyable experience. Candles come in many sizes and shapes. Learn what each one indicates. Open a 5 minute chart on BCH/USD. Today, the long term trend is bearish, and now within a small range zone. The only entry consideration is choosing a selling opportunity at 7.33 GMT.

The chart shows three small consecutive red candles 7.36 GMT. I would suggest the next candle has a high probability of continuing the downward movement. However it’s still in a range, so I wouldn’t be totally surprised to see a green candle. Which is what happened. And it was a small fat candle that indicated an upward movement was close.

Now guess what the next candle is going to be - there are three probable options. Another green candle, a red candle, or wait and see what happens next. As at 7.45GMT another red candle which is fighting off the buyers. If I was scalping for a few $, I would go with the long term trend and enter a sell at this point. But also being aware that the candles are small, which indicates a c.51% - 49% probability in favour of continuing the downward movement.

And at 7.55 I’d lose, as there is a large retracement candle occurring. Whether that would continue is a wait and see, as it is clear there is a small battle between buyers and sellers. Not the easiest scenario for any trader to predict.

Hope this helps.

Hi Gabriel! I personally feel that you should work a little more on learning about trading and understanding different strategies that you can make use of while actually investing in cryptos. You will have to wait till the price is above what you have bought the crypto for and then think of selling.