Here’s Day 7 written clearly, helping you learn how to read crypto charts, starting with candlesticks.

Day 7 – Reading Crypto Charts (Part 1: Candlesticks)




Well done for learning how to manage risks on Day 6! Today, you’ll take a big step forward by learning how to read price charts – the most important tool for crypto traders.

Charts help you understand how the price of a coin has moved over time and predict future movements. The most common and useful chart style is the candlestick chart.

🔹 What is a Candlestick Chart?

A candlestick chart is a visual way to show price changes during a specific time period (like 1 minute, 1 hour, or 1 day).

Each “candle” represents how the price moved during that time.

🔹 Parts of a Candlestick

Each candlestick has four important pieces of information:

  1. Open Price – The price when the time period started.

  2. Close Price – The price when the time period ended.

  3. High Price – The highest price reached during that time.

  4. Low Price – The lowest price reached during that time.

These form the shape of the candle.

🔹 What Does the Candle Look Like?

✔ Body: The thick part of the candle shows the open and close prices.
✔ Wicks (or shadows): The lines above and below the body show the high and low prices.

🔹 Colors of Candlesticks

  • Green/White Candle: The closing price is higher than the opening price → Price went up during this time.

  • Red/Black Candle: The closing price is lower than the opening price → Price went down.

🔹 Example Candlestick

Imagine Bitcoin’s price over 1 hour:

  • Open → ₹30,000

  • High → ₹30,500

  • Low → ₹29,800

  • Close → ₹30,200

This candle would show a green body because the price ended higher than it started.

🔹 What Does This Tell You?

✔ A green candle means buyers were in control.
✔ A red candle means sellers dominated during that time.
✔ Long bodies show strong buying or selling pressure.
✔ Small bodies mean the market was indecisive.

By reading candlesticks, you can spot patterns and decide when to buy or sell.

🔹 Practice Pattern Recognition

  • Bullish Pattern: Several green candles in a row → buyers are pushing the price up.

  • Bearish Pattern: Several red candles → sellers are dominating.

  • Doji Candle: Small body with long wicks → uncertainty in the market.

📝 Example Story

Kiran looks at the Ethereum chart. He sees 4 green candles in a row, each closing higher than the last. This tells him the market is bullish, and he decides to buy while prices are rising.

✅ Day 7 Task

  1. Open the chart of Bitcoin or another cryptocurrency on your exchange.

  2. Look at the candlestick chart for at least the last 24 hours.

  3. Identify 3 green candles and 3 red candles, and write down their open and close prices.

  4. Practice spotting patterns – are buyers or sellers in control?

Tomorrow, Day 8, we’ll learn more about charts by exploring indicators like RSI, MACD, and volume, which help confirm trends.