Crypto market basics · Lesson 3 of 3
Reading price charts
Learn candles, timeframes, volume and the limits of chart patterns.
Candlesticks and timeframes
A candlestick summarises open, high, low and close for an interval. A 1-hour candle and a 1-day candle describe different windows, so a pattern should always be interpreted with its timeframe.
Candles describe historical price action; they do not guarantee future movement. Use them alongside risk planning rather than as standalone predictions.
Volume and context
Volume measures activity reported by a venue or provider. A price move with higher volume may be interpreted differently from a move on low activity, but volume alone does not prove a trend will continue.
Key takeaway
Use these concepts to understand the market, not to assume a particular outcome. Always define uncertainty and risk before making a decision.