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Candlesticks, Volume Profiles and Moving Averages: A Practical Guide

A clear, data-driven guide to candlesticks, volume profiles and moving averages.

Candles

Each candle shows open, high, low and close for a period. Long wicks show rejected prices; a candle whose body engulfs the previous one suggests a momentum shift.

Timeframes

Higher timeframes like daily and weekly filter noise. Crypto trades 24/7, so the daily close is set at 00:00 UTC on most exchanges and on TradingView.

Volume profile

Volume profile plots traded volume by price. The point of control is the price with the highest volume; high-volume nodes often act as support or resistance.

Moving averages

The 50-day and 200-day simple moving averages are widely watched. A golden cross occurs when the 50 crosses above the 200; bitcoin's 200-week moving average has marked bear market lows in 2015, 2018 and 2022.

Combining signals

Use indicators to frame risk rather than predict. Define invalidation levels, size positions to risk, and log trades to compute expectancy.

By the numbers

For Candlesticks, Volume Profiles and Moving Averages, the reference figures are topic of Candlesticks, Volume Profiles and Moving Averages, level of Intermediate, updated of 2026. The comparison table below lines up indicator, common use — 50/200-day SMA: Trend direction; 200-week SMA: Cycle floor reference; Volume profile POC: Support/resistance; RSI (14): Momentum extremes.

Modeling Candlesticks, Volume Profiles and Moving Averages with the Risk Reward Expectancy Calculator

The Risk Reward Expectancy Calculator takes three inputs — Win rate (%), Avg win (R), Avg loss (R). Expectancy = win% × win − loss% × loss. With its default inputs (Win rate (%) = 45; Avg win (R) = 2.5; Avg loss (R) = 1) it returns 0.58 R; swap in the figures from Candlesticks, Volume Profiles and Moving Averages above to reproduce the scenario yourself.

Modeling Candlesticks, Volume Profiles and Moving Averages with the Crypto Profit Loss Calculator

The Crypto Profit Loss Calculator takes three inputs — Buy price ($), Sell price ($), Amount invested ($). P/L = invested × (sell ÷ buy − 1). With its default inputs (Buy price ($) = 100; Sell price ($) = 150; Amount invested ($) = 1000) it returns 500 $; swap in the figures from Candlesticks, Volume Profiles and Moving Averages above to reproduce the scenario yourself.

Data Table

For educational and informational purposes only. Not financial, investment, tax or legal advice. Figures are approximate and historical; crypto assets are volatile and you may lose capital. Do your own research.