How To Read Crypto Charts For Short-Term Trading

Cryptocurrency has become one of the leading trade markets in the world. With people investing millions into the market as currency or assets, the market is growing at an exponential rate. However, it is also a market that is extremely volatile and may lead to massive losses if it is not dealt with strategically. 

The first step towards achieving anything in the crypto market is to learn how it works. Therefore, reading crypto charts is a skill that every trader must learn to benefit from it and to make the most informed decisions so that they can maximize their profits and minimize their losses. 

What Is Short-Term Trading? 

Short-term trading is trading that occurs in short time intervals. The time intervals may be as quick as within a fraction of a second or a few minutes or hours. It is often contained in 24 hours, during which the trader buys and sells their investments multiple times to take advantage of the rapid price fluctuations. 

Short-term trading becomes even more difficult to manage as rapid price fluctuations take place within seconds. Therefore, most experienced traders use to help them view trading charts, set down strategies, and maintain their assets in a single platform. 

Tips For Reading Crypto Charts For Short-Term Trading Of Cryptocurrencies

Reading crypto charts for short-term trading can be a useful tool for making informed trading decisions. Here are some key elements to look for when analyzing a crypto chart:

Short Interval Timeframes: 

Select the appropriate timeframe for your trading strategy. Short-term traders typically use charts with timeframes ranging from one minute to a few hours. Short-term time frames are difficult to assess by humans therefore, trading bots are used that can determine time frames for a fraction of a second as well! 

Fluctuating Price Action: 

Examine the price action of the cryptocurrency over the selected timeframe, looking for trends, support and resistance levels, and key price points. Price action plays a crucial role in determining the type and investment that you might want to start with in short-term trading. 


Short-term trading is often based on volume. For volume, it is also important to determine the liquidity and demand for the cryptocurrency that you are looking to trade in. Look at the trading volume of the cryptocurrency, which can help confirm the strength of the trend and identify potential price reversals.

Technical Analysis And Indicators

Use technical indicators such as moving averages, Bollinger Bands, and Relative Strength Index (RSI) to help identify potential entry and exit points for trades. While these might be difficult to track and decipher, they will be the turning point in your analysis and help you make the most fruitful decisions regarding your investment. 

Candlestick Patterns

Study candlestick patterns such as hammers and engulfing patterns to identify potential price reversals and trend continuations. These patterns are crucial in determining the future trends of the market. By understanding the potential future, investors can make informed decisions to buy, sell or hold their investments. At most times, there is also a potential for a massive dip that might lead investors to buy into the dip so that they may sell it at a higher price in the future. 

News And Events

Keep up-to-date with news and events that may impact the price of the cryptocurrency you are trading, such as regulatory announcements, technological developments, and major economic news. News on crypto is one of the most crucial things that you can follow. Through news updates from various sources, you may receive all of the potential predictions without having to go through the effort of understanding various trends. This can also lead to a better understanding of these trends with minimum risks for losses. 


In conclusion, short-term trading is tricky and there are a couple of steps that you must take and become skilled in before you choose to try your hand at short-term trading. Overall, reading crypto charts for short-term trading requires a combination of technical analysis and fundamental analysis. It is important to use a variety of tools and indicators to make informed trading decisions and manage risk. Additionally, it is recommended to practice with small trades and gradually increase the amount of capital invested as experience and confidence grow.