How to Read a Crypto Price Chart

• A price chart shows price history.
• Price charts are not meant to guarantee future performance.
• The two basics to learn first are timeframe and candlesticks.
• Indicators (RSI, MACD, Bollinger Bands) can help organise information.
• However, indicators can confuse beginners if used alone.

Key takeaways: Price charts help users visualise trends and volatility. Candlesticks show more detail than basic line charts. Indicators like RSI, MACD, and Bollinger Bands are tools to help users make better informed decisions.

Timeframe: The period each “data point” covers, such as 1 minute, 1 day, etc.
Candle: A single bar showing open, high, low, and close for the selected timeframe.
Volume: How much of an asset traded during a period.
Indicator: A calculation placed on a chart to help understand price and volume.

A price chart shows how buyers and sellers have valued an asset over a selected timeframe. Most charts let users zoom in and zoom out by timeframe to better understand short-term moves (hours or days) versus longer-term moves (months or years).

A candlestick is one unit of chart data. It shows:

• Open: the price at the start of a selected period.=
• Close: the price at the end of a selected period.
• High/Low: the highest and lowest prices reached during the period.

A line chart plots a single price (typically a closing price) for each period, which makes it easier for users to read. A candlestick chart includes more information, including open, high, low, and close. This helps users better understand volatility and intraperiod movement.

Volume shows how much trading happened during a time period. Higher volume can mean stronger participation, such as more active buyers or sellers. Lower volume can mean a move happened with less participation.

Volume doesn’t guarantee direction or future performance; it just shows past activity so users can make better informed decisions.
 

Timeframe changes the whole story a chart is telling. A 5-minute chart, for example, can look chaotic and reflect recent volatility. But zooming out to a 1-month chart could make the same asset look more stable.

Support is a price area where buying has historically been strong enough to slow or stop declines. Resistance is a price area where selling has historically been strong enough to slow or stop rises.

These are labelled as areas or zones because there is no exact single price.
 

A trend is a general direction of price over a chosen timeframe:

• Uptrend: higher highs and higher lows.
• Downtrend: lower highs and lower lows.
• Sideways: price moves in a range without a clear direction.
   

Volatility is how quickly and how far price moves. Big candles, long wicks, and sharp swings often signal higher volatility. In crypto, volatility is common, especially on shorter timeframes.

RSI (Relative Strength Index) is a momentum indicator that ranges from zero to 100. It is commonly used to flag conditions that traders describe as “overbought” or “oversold.” However, these are not guarantees and RSI can produce false or late signals, especially in volatile markets.

MACD (Moving Average Convergence Divergence) is an indicator built from moving averages that is often used to visualise momentum and trend shifts. Like RSI, it’s best used as one input alongside price structure (trend, support/resistance) rather than alone.

Bollinger Bands are bands drawn around prices that expand and contract as volatility changes. Tightening bands can suggest lower volatility. Widening bands can suggest higher volatility.

Bollinger Bands are used to help contextualise whether price is unusually stretched compared to its recent trading history.
 

By default, no. Many beginners get the most value from mastering timeframe, candlesticks, trend, support/resistance, and volume first. Indicators can help, but they may create “analysis paralysis” for new users who stack too many at once.

Ndax publishes CAD price pages for major assets. For example, the Bitcoin page shows BTC/CAD pricing and related market information.

Charts show historical trading prices. The order book shows current buy and sell interest (known as bids and asks) waiting to trade. For beginners, it is important to understand that charts show where price has been; the order book reflects current buy and sell interest at different price levels.

Ndax provides market tools that can help users contextualise price movements. For example, Ndax offers a market indicators tool that displays market indicators and allows users to change timeframes.

Canadian regulators have cautioned that crypto assets are high-risk, and Canadians who choose to trade crypto generally look for regulator-aligned services with clear disclosures and security practices. Crypto assets are not covered by the Canadian Investor Protection Fund (CIPF) or deposit insurance. Ndax operates within Canadian regulatory requirements. Canadians can check whether a crypto platform is authorised to do business with Canadians using the Canadian Securities Administrators’ list.
 

A simple beginner checklist:

1. Pick a timeframe (start with daily or weekly).
2. Identity trend (up/down/sideways).
3. Take note of any obvious support or resistance zones.
4. Check volatility.
5. Use indicators as confirmation, not as the entire decision.
    

Do charts predict crypto prices?
No. Charts show past price behaviour and can help with context, but they are not meant to predict future outcomes.

What’s the best timeframe for beginners?
Many beginners start with daily or weekly charts for clarity, then zoom in if needed.

Why does the price look slightly different across platforms?
Prices can differ due to liquidity, fees/spreads, and how platforms source and display pricing.

Are RSI/MACD/Bollinger Bands “signals”?
They can highlight conditions, but they are not “signals” in the sense of guaranteeing an outcome. They can also provide false or late signals, especially in volatile markets.

Is learning charts the same as getting investment advice?
No. Chart reading is an educational skill. Investment decisions are solely the user’s responsibility.