A chart can be a useful tool in cryptocurrency trading, showing a visual representation of asset prices, thus allowing the viewer a broader perspective on related price movements.
BTSE has charts for assets and trading products built into its user interface. In this tutorial, we’ll show you how to read them.
Navigating The Layout
The chart for the asset you are trading lies near the middle of your BTSE exchange trading screen as circled in the image above. To expand this chart in order to fit your entire screen, click on the arrows to the right of the camera icon near the upper right corner of the chart section. Clicking on the camera icon also allows you to take a screenshot image of your current chart layout.
Asset prices are displayed on the right-hand side of the graph, and drawing tools are available on the left if you desire to draw patterns, trend lines, etc.
Click the indicator term on the upper left side of the circled area to add indicators to the chart. Select the time icon (labeled 30m in the image above) directly to the left of the indicator icon to change your chart time frame.
Understanding Price Charts
As mentioned, clicking the expansion arrows brings you a full-screen chart view for the asset you are trading. The image above shows price action for BTSE’s Bitcoin Perpetual Futures Contracts (BPFC).
The small green box on the right-hand side of the chart displays the current BPFC price, with a dotted line across the screen to show this current price level relative to previous data.
The chart above is comprised of numerous candlesticks, each showing specific price data. Depending on which timeframe you choose for your chart, each candlestick represents a specific period of time.
A 30m chart, for example, means each candle represents 30 minutes of price activity. Switching to daily candles (1D) shows a chart in which each candle represents one day of price activity.
Each candlestick shows the asset’s opening price, high, low, and closing price relative to the time frame used. The thin segments called wicks represent highs and lows for each time period/candle. The thick colored segments, called candle bodies, show opening and closing price levels.
Based on default settings, the color of each candle body represents a positive or negative overall price action. Red candles represent a downward price movement, and green candles represent upward movement.
These candle bodies also affect where each following candle begins. A red (downward) candle closes at the bottom of its body, while a green (upward) candle closes at the top of its candle body. If a candle does not have a wick, such as the bottom of the red candle in the image above, that means the candle closed at its lowest point at the end of its allotted time period.