What you’ll learn
- An overview charting tools
- Introduction to chart patterns
- An example of a Pennant formation
- How to crowdsource chart resources
If you’ve followed the sequence of our knowledge base articles, explaining how to trade crypto, you should be familiar with the concept of technical analysis.
Technical Analysis uses crypto price history and volume – visualising that data in trading charts – trying to predict where it will move next.
Experienced traders do this by looking for any of a large number of recognised patterns which may point to specific subsequent price movement, as well as applying custom annotation to create their own interpretation.
It is worth pointing out that trading charts and pattern recognition aren’t unique to crypto; it is fundamental to trading any asset, though the specifics may vary. In order to understand it, you must start by familiarising yourself with the tools that will enable you to annotate and draw charts.
One of the most popular tools on the market is Tradingview. You can access the basic elements of Tradingview for free simply by visiting a cryptocurrency exchange such as Bitstamp. You’ll see the Tradeview option when you land on their homepage. Other similar tools are available.
We’ve discussed the basics of crypto price charts already, so if you are unfamiliar it would be worth to go and read these articles:
- What are crypto price charts
- What is Technical Analysis
- Leading & Lagging Indicators explained
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