What is Bitcoinwisdom
BitcoinWisdom.com is one of the most popular Bitcoin charting websites. However, if you are unable to understand the lines, candlesticks, and numbers then it is not much use. Below are a couple of key things that you need to understand if you’re going to be able to Bitcoin charts to your trading advantage.
The General Layout
As you can see from the above image, Bitcoinwisdoms home page displays an overview in numerical form. This is useful as at a quick glance you can see the % increases for the most popular currencies for the past hour, day, week and month. This allows you to build up a image of the overall trend of the currencies such as bitcoin and Litecoin.
Bitcoinwisdoms exchanges charts
If you click any exchange name on the right-hand side (such as Bitfinex) it will display and candlestick chart. Although it may seem confusing at first, the concept is actually fairly simple. This graph gets its name because data points look like candlesticks. Candlestick charts display more data than just the closing price. Every candle shows the opening price, the highest and lowest price of the chosen time-period as well as the closing price.
As you can see, the colour of the candle ‘body’ indicates if the closing price was higher than the opening price (usually a green bar, called an ‘up-bar’) or lower than the opening price (usually with a red body, called a ‘down-bar’).
The next thing you will want to check is the two endpoints on the candlesticks. The lines that usually stick out of top and bottom of the main body of the candlestick. They are the high and low for trading during the window of time.
In addition to candlesticks on the chart, you should also analyse the two lines. These lines are used to represent moving averages. This is popular for technical analysis. The two moving averages represented on the Bitcoinwisdom charts are 7 and 30 days. Blue represents the past seven days. Often traders use these indicators to see which direction the market will move in the short term. If a crossover of these two lines occurs, it can usually indicates a change in market sentiment.
Adjust Bitcoinwisdom to your preferences
Now that you understand the basics of the candlestick charts, you can open up the settings tab and view what other adjustments can be made. Traders usually like to change the moving averages settings to their preferences. You can see the list of settings available to change. Have a play around and see what it looks like, you can always reset it back to the default.
Where to go from here
After this introduction to reading Bitcoin price charts on Bitcoinwisdom, a good plan would be to start following bitcoin’s price on a day to day basis. Inevitably, you will start to notice certain patterns on the charts and eventually you will be ready to place your first trade. Good luck!