How To Read Ethereum Charts? Tricks That Might Help You

Are you struggling to read Ethereum charts? Here are some tricks that might help you.

1. Glance over the major milestones for a few minutes.

What did the price look like at certain highs and lows? This gives you a sense of how far the price is moving.  Next, look over the daily chart for a few minutes, paying attention to how many times it has changed direction every day and at what levels. This also gives a good indication of when and where the price will stop moving in a particular direction.

More importantly, you should be able to tell what trend it is in.

Is it rising or falling? It is worth noting that a falling trend often ends at the bottom of a downtrend channel and then shoots upwards, while an uptrend usually reverses around the top of an uptrend channel. In other words, these channels can help you predict what could happen next.

2. Watch the candle bars.

It is worth noting that at certain times of the day this can be misleading. However, in general, volume bars give you an indication of how many traders are betting on a particular direction. In the context of Ethereum and other altcoins, it is best to pay attention to volume bars close to the price bar when they are making their way up and down, just as they are forming their upper and lower extremes.

3. Open interest is also useful.

Open interest is basically the public money that traders have put into a specific direction and gives you an idea of how many traders are betting on a particular direction, which can help you tell if it will keep moving in that direction after the close of the current candle.

4. Watch the moving averages.

Moving averages are used to simply measure how the price has moved in the past. They are particularly useful when you are trying to determine where a trend will end up and how far it will move before reversing.

There are two main types of moving averages: Exponential and Simple Moving Average or SMA.

Ethereum trading data uses Exponential Moving Averages (EMA) which is the one that most people use and it is the one that I use for my charts as well. Most of the tricks described above are simple and should help you read the Ethereum chart faster and better.

If you have any comments or thoughts that you would like to share, please leave a reply below.

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