If you want to trade crypto successfully, “guessing” is not enough. You need basic knowledge of chart reading – it’s like a roadmap in financial markets.
The most popular platform for this purpose is TradingView, because it is simple, visually clear, and available both on desktop and mobile.
In this article, step by step we’ll explain:
How to understand candlesticks,
How to navigate the TradingView chart,
How the three most important beginner indicators work – RSI, MACD, and Bollinger Bands,
How to use them in practice to avoid common mistakes.
TradingView Chart Basics
When you open TradingView, the first thing you see is the chart – usually a candlestick chart.
Candles represent price movement within a certain period (for example, 1 min, 5 min, 1h, 1 day).
How to read candlesticks?
Each candle shows 4 price points:
Open – price at the beginning of the period,
Close – price at the end of the period,
High – maximum price within the period,
Low – minimum price within the period.
Candle colors:
Green candle → price goes up (Close > Open),
Red candle → price goes down (Close < Open).
📌 Example: if you open the 1h chart, each candle represents 1 hour of price action.
Timeframes
1 min / 5 min / 15 min – for short-term traders (scalping, day trading),
1h / 4h – for medium-term analysis (swing trading),
1D / 1W – for long-term investing and identifying overall market trends.
Rule of thumb:
The smaller the timeframe, the more noise and false signals.
The larger the timeframe, the more reliable the analysis.
Support & Resistance Levels
Before moving to indicators, it’s important to understand horizontal levels:
Support level – where price usually stops falling and bounces up (buyer zone).
Resistance level – where price often stops rising and falls back down (seller zone).
Think of these levels as walls that restrict price movement.
Indicators in TradingView
TradingView offers hundreds of indicators, but beginners don’t need 20 indicators at once.
A few simple tools are enough to understand market sentiment.
The three most important to start with:
RSI (Relative Strength Index),
MACD (Moving Average Convergence Divergence),
Bollinger Bands.
RSI – Relative Strength Index
What is RSI?
RSI measures whether an asset is overbought or oversold.
It ranges from 0 to 100.
Above 70 → Overbought (price may fall),
Below 30 → Oversold (price may rise).
How to use RSI?
RSI > 70 → possible overbought zone (correction may follow),
RSI < 30 → possible oversold zone (bounce may follow).
Divergence:
Price goes up but RSI goes down → possible drop ahead,
Price goes down but RSI goes up → possible rise ahead.
⚠️ RSI is very useful in volatile markets, but during strong trends it may give misleading signals (for example, in a bull market RSI can stay above 70 for a long time).
MACD – Moving Average Convergence Divergence
What is MACD?
MACD shows the relationship between two moving averages (EMAs):
MACD line = (usually 12 EMA – 26 EMA),
Signal line = 9 EMA of the MACD line,
Histogram = the difference between MACD and the signal line.
How to read MACD?
Crossovers:
If the MACD line crosses above the signal line → buy signal,
If it crosses below → sell signal.
Histogram:
Positive and increasing → trend is strengthening,
Negative and decreasing → trend is weakening.
⚠️ MACD works well in trending markets, but is less effective in sideways/ranging markets.
Bollinger Bands
What are Bollinger Bands?
This indicator shows market volatility.
It consists of:
A middle line (SMA – simple moving average),
Upper and lower bands (set at a certain standard deviation above and below the SMA).
How to interpret it?
If price touches the upper band → market may be overbought,
If price touches the lower band → market may be oversold,
Bands squeezing together → strong move (breakout) likely soon,
Bands widening → market is very active and volatile.
📌 Bollinger Bands are especially useful for spotting potential breakouts.
Practical Example Using All Three Indicators
Imagine you analyze BTC on the 4h chart:
RSI = 75 → shows the asset is overbought,
MACD histogram starts declining → trend is weakening,
Price touches the upper Bollinger Band → possible correction coming.
✅ Together, these three signals give a high probability of a price drop.
Common Beginner Mistakes
Using too many indicators – causes confusion and conflicting signals,
Trading based on only one signal – always confirm with multiple indicators,
Ignoring higher timeframes – a 5 min chart may show a drop, but the 1D chart shows a strong uptrend,
Not having a written strategy – traders get lost in panic or euphoria.
Tips for Learning Chart Reading the Right Way
Start with one indicator and master it,
Combine 2–3 indicators that complement each other (e.g., RSI + MACD + Bollinger Bands),
Practice on a demo account or trade with very small capital,
Always keep a trading journal to record your trades.
Conclusion
Chart reading is one of the most important skills for becoming a successful trader.
RSI helps identify overbought or oversold conditions,
MACD shows trend reversals,
Bollinger Bands reveal volatility and potential breakout points.
Remember – indicators are not a crystal ball. They are just tools that need to be combined with experience, risk management, and discipline.
TradingView charts may seem complicated at first, but after a few weeks of practice you’ll start seeing market movements much more clearly.