Opening Binance's trading page and facing a colorful candlestick chart can be overwhelming for beginners. This article starts from the very basics to help you understand Binance charts. If you don't have a Binance account yet, sign up for Binance — practicing on the actual trading page will help you learn faster.
What Is a Candlestick Chart?
A candlestick chart displays price movements over time. Each "candle" represents price action during a specific time period.
Anatomy of a Single Candle
Each candle contains 4 price points:
- Open: Price at the start of the period
- Close: Price at the end of the period
- High: Highest price during the period
- Low: Lowest price during the period
Candle Colors
- Green (bullish): Close > Open — price went up
- Red (bearish): Close < Open — price went down
Note: Binance defaults to green-up/red-down (international standard). You can change the color scheme in settings.
Candle Shape
- Body: The area between open and close (the rectangle)
- Upper wick: The thin line above the body, reaching the high
- Lower wick: The thin line below the body, reaching the low
Choosing Time Frames
Above the chart, you can select different time periods:
| Time Frame | Code | Best For |
|---|---|---|
| 1 minute | 1m | Scalping / day trading |
| 5 minutes | 5m | Short-term trading |
| 15 minutes | 15m | Short-term trading |
| 1 hour | 1h | Intraday to short-term |
| 4 hours | 4h | Medium-short term |
| 1 day | 1D | Medium-long term |
| 1 week | 1W | Long-term trends |
Beginner tip: Start with the daily chart (1D) for the big picture, then zoom into 4h or 1h for specific entry/exit points.
Volume
The bar chart below the candles represents trading volume during each period.
What volume tells you:
- High volume + price rise = strong upward momentum
- High volume + price drop = strong downward momentum
- Low volume + price change = higher chance of a fake breakout
- Sudden volume spike = major news or trend change
Moving Averages (MA)
Moving averages show the average price over a period, plotted as a line. Binance typically displays several:
- MA(7): 7-period moving average (yellow)
- MA(25): 25-period moving average (purple)
- MA(99): 99-period moving average (cyan)
How to Use Moving Averages
- Trend identification: Price above MA = uptrend; below = downtrend
- Support and resistance: MAs often act as support or resistance levels
- Golden cross and death cross:
- Short-term MA crosses above long-term MA = golden cross (bullish signal)
- Short-term MA crosses below long-term MA = death cross (bearish signal)
Basic Candlestick Patterns
1. Long Bullish Candle
A tall green body, indicating strong buying pressure.
2. Long Bearish Candle
A tall red body, indicating strong selling pressure.
3. Doji
Very small body with relatively long wicks. Indicates market indecision — possible trend reversal signal.
4. Hammer
Long lower wick, small body near the top. Appearing at the end of a downtrend may signal a bounce.
5. Inverted Hammer
Long upper wick, small body near the bottom. Appearing at the end of an uptrend may signal a pullback.
Configuring Charts on Binance
Switching Chart Modes
On the Binance app trading page, tap the chart to go full screen. In full-screen mode you can:
- Zoom in and out
- Add indicators
- Draw trend lines
- Switch time frames
Adding Technical Indicators
Tap the "Indicators" button to add:
- MACD
- RSI (Relative Strength Index)
- Bollinger Bands
- KDJ
Beginners should stick to moving averages and volume — don't add too many indicators.
Chart Reading Tips for Beginners
- Start with the big picture: Use daily or weekly charts to identify the overall trend
- Don't switch time frames constantly: It's easy to get confused
- Watch volume: Price movements confirmed by volume are more reliable
- Don't rely solely on charts: Technical analysis is just one tool — also consider fundamentals and market sentiment
- Observe more, trade less: Spend more time watching charts than actually trading until you develop your own analytical skills
Summary
Charts look complex but the core is simple: green means up, red means down, large bodies mean strong momentum, and long wicks indicate indecision. Start with daily charts and moving averages, then gradually expand your knowledge. Remember, technical analysis is a probability game — no pattern or signal is 100% accurate.