The two axes
Every price chart plots price on the vertical (y) axis and time on the horizontal (x) axis. As you move right, time passes; as the line or candles move up, price rises. That is the entire foundation — everything else is a way of summarising what happened between two points in time.
Reading a candlestick
Most crypto charts use Japanese candlesticks. Each candle represents one period — a 5-minute candle covers five minutes, a daily candle covers a day. The rectangular body spans the open and close; the thin wicks (or shadows) mark the high and low reached during that period.
A green (or hollow) candle closed higher than it opened — buyers won the period. A red (or filled) candle closed lower — sellers won. Long bodies show conviction; long wicks show rejection, where price was tried and pushed back.
The six-step read
- › 1. Trend — is price making higher highs and higher lows (up), the reverse (down), or neither (range)?
- › 2. Structure — mark the obvious swing highs and lows; those are your reference points.
- › 3. Support & resistance — draw the levels price keeps reacting to.
- › 4. Pattern — is a recognisable structure (double bottom, triangle, flag) forming at a level?
- › 5. Volume — is participation confirming or fading?
- › 6. Context — where does the higher timeframe say we are in the bigger move?
Why the higher timeframe comes first
A setup that looks bullish on the 5-minute chart can be a small bounce inside a daily downtrend. Reading top-down — daily, then 4-hour, then your entry timeframe — keeps you trading with the dominant flow instead of against it. This is the single habit that separates consistent readers from screen-watchers.