Orca Crypto
Trading

Reading charts from scratch

What the lines mean, what they can tell you, and the large amount they cannot.

12Chart patterns
5Candle shapes
3Core indicators
1Rule that matters
Before anything else

A chart shows what happened, not what will

Every honest thing that can be said about technical analysis starts here. A chart is a record of decisions people already made. It is genuinely useful, and it is not a prediction machine.

What charts are actually good for is defining risk. They show you where a lot of people previously decided to buy or sell, which gives you a level where you can say clearly: if price goes past here, my reasoning was wrong.

That is the real value. Not forecasting, but knowing in advance what would prove you wrong and how much it costs when it does.

Worth remembering
If you take one thing from this whole section, take this: decide where you are wrong before you enter, not after. Everything else is decoration.
The basics

What you are looking at

ElementWhat it showsWhy it matters
Price axisThe vertical scaleLog scale is better for long timeframes because it shows percentage moves evenly
Time axisThe horizontal scaleEach candle covers one period. A daily chart shows one candle per day
CandlesOpen, high, low and close for the periodThe shape carries information about who won the period
VolumeHow much tradedA move on low volume is fragile. On heavy volume it reflects real participation
TimeframeThe period each candle representsThe same asset looks bullish and bearish at once on different timeframes
Good to know
Always identify the trend on a higher timeframe before trading a lower one. Most disagreements about a chart are two people looking at different timeframes and neither saying which.
Support and resistance

The one concept everything else is built on

ResistanceSupportBreak, then flip
Price repeatedly reacting at the same two zones. Note the break at the right, where old support is retested from below and becomes resistance.

Support is a zone where buyers have repeatedly appeared. Resistance is where sellers have. They are zones rather than exact lines, and they work partly because so many people are watching the same levels.

When a level breaks, it frequently reverses role. Old resistance becomes new support and the other way around. That flip is one of the more reliable observations in technical analysis.

Learn to read a chart properly

A session covers candlesticks, trend, support and resistance, and how to define your risk before you enter. Using your own charts, at your own pace.