There are certain key drawing tools that I use when doing technical analysis on the BTCUSD or any other asset. This is the first of many tutorials on how I read a candlestick price chart.
Hello everyone, thank you for joining me at Crypto Trading this is JB trader and today I’m going to be sharing my desktop with you and going through the fundamentals of what a chart looks like, a candlestick chart.
And we’re going to be using a website that provides a platform that anyone can use at no charge to look at that Bitcoin dollar that’s what I’m looking at today.
So, right now you see my screen, we shut this down, hide for now. I don’t use this to trade on and I don’t really use this to do my analysis on that. I will show you the different platforms that I do use in another video.
For right now we’re going to be going to tradingview.com and a lot of people do use it it’s very popular. You can get a lot of cryptocurrencies pairs, you can do stocks, Forex, a lot of different products on here.
So for right now over to my right, I see a bunch of information I want to hide that. There’s a tiny little arrow here, hide widgets click on that it gives me my full screen.
So up in your upper left-hand corner you’re going to see “BTC USD” that stands for a Bitcoin dollar and when you’re dealing in foreign currency pairs.
The first currency listed BTC is called your base currency which represents a unit of 1. And then the second currency listed “USD” is called your quote currency and that is the currency that is quoted on this chart.
So right now we see that the Bitcoin dollar has a value of over here to the right $15,069.47, and what that means? It’s that it takes in $15,069.47 USD to buy 1 Bitcoin.
Alright, that is what that means and depending on what country that you’re in whatever your currency is whether it’s again the Aussie dollar or the Euro. Your quote is going to be how much of your dollars, your currency it takes to buy 1 Bitcoin.
So pay very close attention to that, now over to the right of the quoted-pair. When you hover over it, you’re gonna see one day I have it sit on a daily chart and what that means when you’re using a candlestick pattern chart?
Every rectangle which is called a candlestick it represents that time frame. So every single one of these rectangles represents 1 day.
Now on the bottom, there is this on the bottom down here you see the date. Today is January 2018, the date is right here, you can slide and hover over it can you see.
Well, somewhere else. I think my computer’s not set on my time frame along the Pacific coast which is still on the third but on this is on the fourth whatever.
Third, as you can see every time. I move back and hover over a candlestick it changes to a different day.
If I were to change this to let’s say a weekly chart, please don’t mess up on me Internet. Why does it do this? Don’t you just love that? I’m in a remote location right now.
Anyway, there we go this is a weekly chart. And so what that means is that if I hover over it you’re gonna see January 1st,f 2018 and when I go to the very next candlestick it’s gonna say December 25th, 2017 and the very next one is December 8th, 2017 so these are weekly.
So every piano stick represents one week and if you hover over this again as you’ll see there are intervals of minutes, 1 minute, 3 minutes, 5 minutes, 15 minutes, 30 minutes, 1 hour, 2 hours, 3 hours.
Now, these very small timeframes. Usually, people, who do like day trading they need very small timeframes, minute by minute, hour by hour to do their trading and make their profit.
Down here you have some of the larger high timeframes daily, weekly, monthly and so forth so depending on what type of trader you are what kind of investment you’re looking to do.
You want to analyze your asset in a timeframe based upon how long you try to hold on to your position, you’re trying to be in that position for days, weeks, months, years.
If you’re trying to hold you know Bitcoin for like years or months you don’t want to look at like a 5-minute chart, really especially with the volatility of it.
You just drive yourself crazy spare yourself, we all go through it. It’s okay so anyway that’s what that is so I’m just gonna stick with the daily, just to keep it simple. I’ll keep my charts in a daily exactly asks.
The trend line is it an uptrend or downtrend or is price action going sideways which is called a range. A range is like a specified high and a low for a support and resistance level in price, that price keeps hitting and it’s just staying in that range.
So trend lines do help you determine that and visually. If you click on trendline there’s a little arrow, right here little caret you a variety of different things you can do let’s just keep it simple trendline.
So for an uptrend, you go to the bottom of a candle, click on it, pull it wherever you want to pull it. Touch the bottoms of candles now before we look like that. Now it’s like that and then you click again and it keeps it there.
Now, these are pink pretty polka dots but if you don’t like pink polka dots for your trend line. Up here as you notice there is a bar so you can customize it and format your lines.
And if you don’t use this bar another way to do it is you hover over your drawing tool, you right-click on your mouse you can go-to format. That pulls this box up and you can change it from here.
So either one is fine whatever you’re comfortable with so if I wanted to change the color the line color I can go here and turn it in blue.
If I want it thicker I push this up, if I don’t want dots and I want a solid line I go there hit OK.
And that’s what it looks like or you can change it from here. Click here I want it bright green I want the thickness to be skinnier and so forth loses style give me some dotted lines might be hard to see. Sorry if you can’t see it.
So anyway that’s the trend line. So uptrend, we’ll talk about that in another video this is just using some of the tools. The same way if you do so if you want another trend line.
Here’s nothing if you click on it or if you hover over it and you right-click you go to down here to where it’s called clone and it produces a clone of it.
So some people you know you like to have that clone a parallel version of your trendline. There are things called channels or prices moving in Uptrend.
In a predicted manner so to speak mathematically let me go ahead and make this darker easier to see and thicker. I’ll delete that and I will make a clone of this one there you go and it’s right at that same angle
Okay and another common line that is used. Let’s go down here to a horizontal line and this horizontal line it’s just the line straight there’s you click on it.
And I say I want to come up here. So maybe a point of resistance, you just click one time and it makes a line all the way from the lip that you’re seeing all the way to the right.
Okay and this little handle right here so if your hand you hover over it and that’s where you can grab on to it and move it around.
All right and so if I want I can do a right-click I can do a clone do another one and drag that down to an area of support if you want.
And I can right-click and I forget the format, I’ll just go up here, make this a green. If I want this to be an area of support I’m going to remove this other clone on it just a bit for fun.
So brace these little pop-ups. No, I don’t. I do not want to upgrade and thank you.
So there we go, so that’s really nice now whatever lines you add on to your chart I like to be reminded of what the heck I was thinking, so down here over to the left there’s a big “T” hover over it and you’ll see the word text.
Where’d you go text it was there a second ago you saw it. See a little caret if I click on the caret blue there are lots of different fun things I can do.
Here’s a price label if I click on price label, I click anywhere I want. I can click over any candle, click, it tells me the price.
So the high for that day about 16,480 and if I hover over and I see the vertical line on the bottom is the date that was December 27, that’s cool.
Okay, a lot of fun things so let me go back. There are arrows if I click an arrow down this is for price spell that beautiful red arrow.
Okay, a lot of fun things whatever helps you visually to understand the chart. Alright, so I’m going to go back over here to my arrows text.
So you want some words, click on where you want the words, that’s not real life. I want to drag this.
Remembers what I did before so this is support, so if I believe this is an area of support here 11,122. I do that.
I can change this, I can right-click format drag that over that’s background it’s a fun back. I can change that red if I want its paint with blue.
I can make it a border blue, blue-purple border. I can make the font black if I want to make it bold whatever I want and I can type in what I want to say here it.
So up here go to my text click, I think you raised this and great resistance, I can change the color make it red, I can change the font, Roman. I can make it humongous if I want to. You’re not humongous but big bold take the italics off or put a bad one.
If I want take the background off, take the border off I don’t need that it. I can move it around whatever you want to do again some people are more visual than others color.
Code your chart however you want whatever is going to help you to remember what it is you’re trying to do what it is you’re looking at.
Now if you want to just start off with a clean slate just click on it delete or I can right-click and hit remove right click and hit remove right click remove and delete.
Okay so I don’t want to drag this out any further a lot of fun things right here to zoom in our eyes aren’t what they used to be the older we get but it’s okay because we have a zooming feature zoom.
In the feature I click on it and I can highlight they want to highlight this area of price action here and it makes it nice and big and fluffy for me so I can really see what price is doing and it can all go over the canvas with you in another video.
If I want to put the candles little chart back to where it was I hover over the zoom out I just click one time and it goes back to where it was.
So a lot of fun things hide all the drawing tools already deleted them but if you click that all of them will go away. If you click on again they’ll all come back.
So I would encourage you everyone who is investing in cryptocurrency or any other type of asset – never done technical analysis maybe start off with tradingview because a lot of platforms that I use paid platforms that I use to analyze charts with, they’re not too different from this a lot of the drawing tools are fairly similar.
So okay try it out tradingview.com, it’s a very popular and a host of a wide variety of different quotes for you. All right thanks for joining me I love you. I want to get some water. Goodbye. Thanks