Crypto Chart Reading Tutorial: A Step-by-Step Guide for Complete Beginners

When I first opened a crypto trading platform, I felt completely lost. All those lines, candles, and numbers—it was like trying to read a foreign language. But over time, I realized that reading charts isn't as complicated as it looks. You just need to start from the beginning and take it one step at a time.

This tutorial will walk you through everything, assuming you've never looked at a chart before. We'll set up your chart together, add the indicators one by one, and then I'll show you exactly how to read them.

Getting Started - Setting Up Your Chart

Step 1: Choose Your Platform

Before we can read any charts, you need somewhere to look at them. I recommend starting with TradingView because it's free and has everything you need.

Go to tradingview.com and create a free account. You don't need to pay for anything. The free version is perfect for learning.

Once you're logged in, you'll see a chart. It might look confusing right now, but we're going to clean it up and make it simple.

Step 2: Select Your Cryptocurrency

At the top left of the screen, you'll see a search box. Click it and type "BTCUSDT" (that's Bitcoin compared to US Dollar Tether, a stablecoin).

Press enter. Now you're looking at a Bitcoin chart.

Step 3: Set Your Timeframe

Look at the top of your chart. You'll see buttons that say things like "1m", "5m", "15m", "1h", "4h", "1D", "1W".

These are timeframes. Each candle on your chart represents that amount of time.

For learning, click on "1D" (one day). This means each candle shows one full day of trading. It's easier to see patterns on daily charts when you're starting out.

Step 4: Clean Up Your Chart

Your chart might have lots of stuff on it already. Let's remove everything and start fresh.

Look for an "Indicators" button at the top of your chart. Click it, and if there are any indicators listed, remove them. We want a blank canvas.

Now you should just see price candles. Green candles mean price went up that day. Red candles mean price went down that day.

Take a moment and just look at the candles. See how price moves up and down? That's what we're going to learn to read.

Understanding Candlestick Charts

Each candle tells you four things about that day:

Opening price - Where the price started when that day beganClosing price - Where the price ended when that day finishedHighest price - The highest point price reached that dayLowest price - The lowest point price reached that day

The thick part of the candle (called the body) shows the opening and closing prices. The thin lines above and below (called wicks or shadows) show the highest and lowest prices.

Green candle = Price closed higher than it opened (buyers won)Red candle = Price closed lower than it opened (sellers won)

Hover your mouse over any candle. You'll see a box appear showing you O (open), H (high), L (low), C (close), and V (volume). These are the numbers for that specific day.

The Price Scale

On the right side of your chart, you'll see numbers. These are the prices. If you're looking at Bitcoin, you might see numbers like 42,000, 44,000, 46,000, 48,000.

This scale shows you how much one Bitcoin costs at different levels on the chart.

The Time Scale

At the bottom of your chart, you'll see dates. These tell you when each candle happened.

You can zoom in and out using your mouse scroll wheel. Try it. Zoom out to see more history. Zoom in to see recent days more clearly.

For this tutorial, zoom out until you can see about three to four months of price history. This gives us enough data to work with.

Identifying Support And Resistance Level

Support and resistance aren't really "indicators" you add. They're levels you draw yourself by looking at where price has reacted in the past.

Drawing a Support Line

Look at your Bitcoin chart for the past few months. Find a price level where Bitcoin fell to several times but didn't go below. This is support.

Here's how to draw it:

Step 1: Click the drawing tools on the left side of your screen. Look for a horizontal line tool (it looks like a straight horizontal line).

Step 2: Look at your chart and find the lowest points where price bounced up. Let's say you notice Bitcoin fell to around $42,000 three different times in the past month, and each time it bounced back up.

Step 3: Click on the chart at the $42,000 level and drag a horizontal line across. This is your support line.

Now you can see visually where that support level is. Anytime price approaches that line, you know it's near a level where buyers have stepped in before.

Drawing a Resistance Line

Now do the same thing, but look for a price level where Bitcoin rose to multiple times but couldn't break through. This is resistance.

Let's say you notice Bitcoin tried to break $48,000 three times in the past month, but each time it got pushed back down.

Use the same horizontal line tool and draw a line at $48,000. This is your resistance line.

Now your chart has two important levels marked: support below and resistance above.

What This Tells You

Price tends to bounce between support and resistance. When price is near support, buyers often show up. When price is near resistance, sellers often show up.

These aren't magic lines. Sometimes price breaks through them. But they give you zones to watch carefully.

Identifying Moving Average

Now we're going to add our first real indicator. This one will show you the trend.

Adding the 50-Day Moving Average

Step 1: Click the "Indicators" button at the top of your chart.

Step 2: In the search box that appears, type "Moving Average".

Step 3: You'll see several options. Click on "Moving Average" (the simple one at the top).

Step 4: A line will appear on your chart. This is the moving average, but we need to change its settings.

Step 5: Click on the word "Moving Average" that appears at the top left of your chart (in the indicator list). A settings menu will open.

Step 6: Look for "Length" and change it to 50. This makes it a 50-day moving average.

Step 7: You can change the color if you want. I like blue because it stands out. Click the color box and choose a color you like.

Step 8: Click "OK" to close the settings.

What You're Looking At

Now you have a smooth line that flows through your price candles. This line shows you the average price of Bitcoin over the last 50 days.

Watch how the line moves. When Bitcoin is in an uptrend, you'll notice price stays mostly above this blue line. When Bitcoin is in a downtrend, price stays mostly below this blue line.

Reading the Moving Average

When price is above the blue line: The trend is generally up. Bitcoin is doing better than its 50-day average. This is when buyers are in control.

When price is below the blue line: The trend is generally down. Bitcoin is doing worse than its 50-day average. This is when sellers are in control.

When price crosses the blue line: The trend might be changing. Pay attention to these moments.

Identifying Volume Indicator

Volume shows you how much trading activity is happening. High volume means lots of people are buying or selling. Low volume means not much is happening.

Adding Volume to Your Chart

Step 1: Click "Indicators" again.

Step 2: Type "Volume" in the search box.

Step 3: Click on "Volume" (it should be the first result).

Step 4: You'll see bars appear at the bottom of your chart, below the price candles.

Green bars mean volume on days when price went up. Red bars mean volume on days when price went down. Taller bars mean more volume. Shorter bars mean less volume.

What Volume Tells You

Volume confirms whether a price move is real or weak.

Tall volume bar = Lots of people trading = Strong moveShort volume bar = Not many people trading = Weak move

When price breaks above resistance with high volume, it's more likely to keep going up. When price breaks above resistance with low volume, it's more likely to fall back down.

When price bounces off support with high volume, it's a stronger bounce. When price bounces with low volume, the bounce might not last.

Identifying RSI Indicator

RSI stands for Relative Strength Index. It measures momentum and tells you if something has gone too far too fast.

Adding RSI to Your Chart

Step 1: Click "Indicators" one more time.

Step 2: Type "RSI" in the search box.

Step 3: Click on "Relative Strength Index" (it will say "RSI" next to it).

Step 4: A new section will appear below your volume. This is the RSI indicator.

Understanding the RSI Panel

The RSI panel shows a line that moves between 0 and 100. You'll also see two horizontal lines already drawn—one at 70 and one at 30.

These are the important zones:

Above 70 = Overbought (price has gone up too much too fast)Below 30 = Oversold (price has fallen too much too fast)Between 30 and 70 = Normal zone

The RSI line will move up and down as price moves. When Bitcoin is rallying hard, RSI moves toward 70 and above. When Bitcoin is falling hard, RSI moves toward 30 and below.

Reading RSI

Here's the simple way to use RSI:

When RSI drops below 30 then crosses back above 30: This often signals a bounce is coming. The selling has exhausted itself.

When RSI rises above 70 then crosses back below 70: This often signals a pullback is coming. The buying has exhausted itself.

When RSI is between 40 and 60: Things are neutral. No extreme in either direction.

Putting It All Together - Reading a Complete Setup

Now you have all four tools on your chart:

1. Support and resistance lines (drawn by you)

2. 50-day Moving Average (the blue line)

3. Volume bars (at the bottom)

4. RSI (below volume)

Let's walk through reading a complete situation step by step.

Looking for a Buy Opportunity

Step 1 - Check the Trend (Moving Average)

Look at where price is compared to your 50-day MA (blue line).

If price is above the blue line, the trend is up. We want to buy when the trend is up.

If price is below the blue line, the trend is down. Be careful buying in a downtrend.

Step 2 - Check Where Price Is (Support and Resistance)

Look at where the current price is compared to your support and resistance lines.

Is price near your support line? Good. Support is where buyers have shown up before.

Is price near your resistance line? Be careful. Resistance is where sellers have shown up before.

Step 3 - Check Volume

Look at the volume bars for the last few days.

Is volume increasing? This shows growing interest.

Compare today's volume bar to the average height of volume bars. Higher than average is good.

Step 4 - Check RSI

Look at the RSI line. Where is it?

Is RSI below 30 or just crossed above 30? This suggests selling pressure is ending.

Is RSI above 70? Be careful. Things might be overbought.

Is RSI between 40 and 60? This is neutral.

Complete Example

Let me walk you through a real example:

Current situation: Bitcoin is at $43,800 right now.

Step 1 - Moving Average: My 50-day MA is at $43,200. Bitcoin's price ($43,800) is above it. The trend is up.

Step 2 - Support and Resistance: My support line is at $43,000. Bitcoin just bounced off it yesterday. My resistance line is at $48,000. So Bitcoin is near support and far from resistance.

Step 3 - Volume: Yesterday's volume bar is tall—about twice the average. High volume on the bounce confirms buyers stepped in strong.

Step 4 - RSI: Yesterday RSI was at 28 (below 30). Today it's at 35 (crossed back above 30). The selling exhausted itself and momentum is turning up.

My conclusion: All four indicators are aligned. Trend is up, price bounced at support with high volume, and RSI shows oversold condition is reversing. This looks like a buy opportunity.

Looking for a Sell Opportunity

Current situation: Ethereum is at $3,280.

Step 1 - Moving Average: My 50-day MA is at $3,050. Ethereum is above it, so trend is still up. But the MA is starting to flatten.

Step 2 - Support and Resistance: My resistance line is at $3,300. Ethereum has tried to break it three times and failed each time. Price is right at resistance now.

Step 3 - Volume: The volume bars are getting shorter. Today's volume is about 30% below average. The rally is running out of energy.

Step 4 - RSI: RSI is at 73. That's above 70, which means overbought.

My conclusion: Three out of four things are warning me. Price is at resistance with declining volume and high RSI. Even though the trend is still technically up, this looks like a sell opportunity or at least time to take profits.

What I Wish Someone Had Told Me

It Won't Work Every Time

These indicators aren't magic. Sometimes all four will line up perfectly and the trade still fails. That's just how markets work.

What these tools do is improve your odds. Instead of guessing randomly, you're making decisions based on what the chart is showing you. You'll win more often than you lose, but you'll still lose sometimes.

Volume Is More Important Than I Thought

When I started, I focused mostly on price and RSI. I ignored volume. Big mistake.

Volume is what separates real moves from fake moves. A breakout without volume is usually a trap. A bounce without volume usually fails. Now I check volume on every single analysis.

The 50-Day MA Is Your Friend

This simple line changed everything for me. It tells you the trend in one glance.

Price above the line? Look for buying opportunities.Price below the line? Be very careful about buying.

It's not complicated, but it works.

Support and Resistance Take Practice

When I first started drawing support and resistance lines, I wasn't sure where to put them. I'd draw them, then price would blow right through them and I'd feel stupid.

Here's what I learned: Support and resistance are zones, not exact prices. If you draw support at $42,000, it might actually bounce at $41,800 or $42,200. That's normal. Give yourself a range of about 2-3% on either side.

Also, the more times a level has been tested, the stronger it is. A level that's been tested twice might break. A level that's been tested five times is much more significant.

Patience Is the Hardest Part

The indicators will teach you where to buy and sell. But they won't teach you patience.

Most days, the setup won't be perfect. Most days, you should do nothing. That's the hardest lesson to learn.

I used to feel like I had to trade every day. If I wasn't doing something, I was missing out. Wrong. The best traders wait for the right setup and then act decisively.

There will always be another opportunity. Always. You don't need to catch every move.

Fighting the Trend Will Hurt You

I learned this the expensive way. I'd see Bitcoin below the 50-day MA and think "wow, it's so cheap now!" So I'd buy. Then I'd watch it keep falling for weeks.

Or I'd see Bitcoin way above the 50-day MA with RSI at 80 and think "this is crazy, it has to come down!" So I'd sell. Then I'd watch it keep climbing for weeks.

The market can stay irrational longer than you can stay solvent. Don't fight the trend. Trade with it.

You'll Make Mistakes

I still make mistakes. I misread setups. I get impatient and enter too early. I get scared and exit too early. I hold losers too long hoping they'll come back.

The difference now is I recognize the mistakes faster. I cut losses quicker. I don't let ego keep me in bad trades.

Keep a journal. Write down why you entered each trade. Write down what happened. After a month, you'll see patterns in your own behavior. That's where the real learning happens.

This Takes Time

I know you probably want to start trading right now. But honestly, give yourself at least a month of just watching and learning.

Set up your charts. Add the indicators. Watch what happens each day. Start to feel the rhythm of how price moves, how volume confirms, how RSI shows exhaustion.

Paper trade for a while. Pretend to buy and sell, and track how those trades would have done. See what works and what doesn't.

The market will still be here next month. There's no rush. The people who rush in are the people who lose money the fastest.

Final Thoughts

When I started this journey, I thought chart reading was some secret knowledge that only professionals understood. It's not. It's just about paying attention to what the market is showing you.

These four indicators—support and resistance, moving averages, volume, and RSI—give you a framework. They tell you where price has mattered before, what direction things are moving, how much conviction is behind the moves, and whether momentum is exhausted.

That's really all you need to start making informed decisions instead of emotional ones.

The charts don't have emotions. They don't get excited when price goes up or scared when price goes down. They just show you what's happening. Learning to read them means learning to see the market without your emotions getting in the way.

You're not trying to predict the future. You're just trying to understand the present better than most people do. When all four indicators align, you have a high-probability setup. When they conflict, you wait.

It's simple, but it's not easy. The simplicity is in the indicators. The difficulty is in the patience and discipline to wait for the right setups and follow through on your plan.

But if you give yourself time to learn properly, these tools will serve you well. Not because they're perfect, but because they're better than trading on hope and emotion.

Now go set up your chart. Add your indicators. And start watching. The learning happens in the watching, in the doing, in the mistakes you make and the patterns you start to recognize.

You've got this. Take your time. Be patient with yourself. And remember—the goal isn't to trade every day. The goal is to trade well when the setup is right.

Good luck.