Making Money, or in other words, creating assets has become quite easy with the rising popularity of cryptocurrency but with a risky proportion. And now that you are in the right place now, you will get a step-by-step guide on how to start buying and trading cryptos.
So, Let’s deep dive in the world of cryptocurrency and get the answers to the most common questions – How To Read Depth Chart Crypto
How to read crypto charts?
There is a big difference in how to read crypto charts depending if you are a short-term trader or an investor. Day traders are focusing on smaller details and need a very detailed chart to guide them through the day while investors need an objective graph that shows the bigger picture and longer-term trends.
How to read the depth chart?
How to read the Depth Chart The depth chart graphically represents the order book of the current market in real-time. The last-traded price takes the middle point, bid (buy) orders are below and asks (sell) orders are above. Price values shown with tick marks on the left axis of the depth chart represent larger buy or sell volumes.
How do I read a bitcoin depth chart?
In order to read a depth chart, it’s important to understand the components of the chart. While depth charts can vary across exchanges, a standard Bitcoin depth chart has a few key components: Bid Line. The bid line depicts the cumulative value of the bids, or buy orders, at a given Bitcoin price point. It is represented by a green line sloping ...
How to use moving averages when reading crypto charts?
Take a look at this 4-hour bitcoin chart to see how to use moving averages when reading crypto charts. The moving average settings are 50 and 200. First break of both 50 and 200 MA into a positive trend. Bitcoin respects 50 MA and gets support. First touch of 200 MA with full support of uptrend. Trend accelerates and support is help at 50 MA.