Learning To Use Charts

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Learning how to read charts is one of the most important things you can put your time into if you are determined to actually make your own decisions and not just follow the crowd. Financial charts generally follow the same patterns no matter if you are tracking stocks, fiat currencies, of digital currencies. By learning to read them you can make better decisions on when to buy and sell.

When I first started learning about different coins in the Nexus Slack #trading room, the experts there recommended doing the free classes at BabyPips. This is a site created to teach the basics about Forex trading, but all of the same indicators apply to Crypto also. Doing these classes was the single most important thing I needed to get me from just randomly picking Altcoins, to making decisions based on logic.

babypips

You do not need to do all of the classes. The first few are all about the history of Forex trading and won’t apply. I would recommend starting at the link below and going as far as you can make it. If you make it through Grade 11 you should know everything you need.

BabyPips Kindergarten – Three Types of Analysis

You will want to also create a free account at TradingView (TV) or another free charting service. It will take a while to get the hang of TV, but once you have it you will be able to chart any Digital Currency on Poloniex. The downside of TV is coins from Bittrex and other exchanges are not listed there, so the choices are limited.

As you go through the lessons on Babypips you can do your own experimentation on TradingView to see how the different indicators work. The most important indicator I have found and use frequently is the Fibonacci ratio (or Fib lines). This indicator tells me when a price is likely to rise or fall.  Volume indicators are also important for picking up when a coin is seeing inflated attention. As you learn you will find some indicators you come to depend on more than others.

Of course, you could just continue to follow the crowd… they are often right when Altcoins are heading in a positive direction. Making BTC when that is happening is easy. However, what comes up must come down, and if you can use charts to predict the fall, you are less likely to be hurt by it.

If you are interested in seeing some of the Short Term trading indicators I use, check out the page below…

My Favorite Short Term Trading Indicators