I use the view on a chart "Heiken Ashi" Now if you have a regular chart, you will see a lot of gaps, some green bars, some red. On a Heiken Ashi chart, it fills in those gaps and gives you a steady visual of bars, red and green.
Heiken Ashi is a great source to use because it does more than show price. It takes the average range. Every bar on a Heiken Ashi chart always starts at the midpoint of the bar before it. Even if it's tiny, or very long.
It may surprise you to know that the bars have different meanings, not up or down. First is the easiest. Flat red or green bars. They come in different sizes, small or large bars. This just shows the movement of the price. It may be a large bar, or small one.
The second is a bar with a needle pointing either up or down. This shows the strength of the trend. You may see these in succession. In an extended rally or significant downturn you may see these a few at a time.
The above bars are the easiest to see, and the easiest to interpret. The next couple of bars is where the technical side gets more in depth. It takes a very trained eye to put everything together to create an idea of where it is going. If the trend will continue, or reverse to go the other way.
The two symbols im referring to are called a "doji" and a "spinning top" A doji is a very small, thin bar with a needle coming out of both ends. This symbol indicates indecision between buyers and sellers. This can indicate if the price will continue its trend, or go the other direction.
A spinning top is similar. It is a bigger bar with needles coming out of both ends. Similar to an actual spinning top. This is another indicator of something potentially changing. It can be a big needle. This shows the range between the price and the open/close price. It is kind of a marker.
These symbols can be difficult to interpret and can lead to mistakes if you act too early. Since these are potential indicators, riskier investors can take this queue and either buy or sell when they see this symbol. I prefer to wait for confirmation of the trend before making a decision. This does cut down on the spread of profit, but I like to make aggressive, smart trades.
Another potential indication of price movement is the size of the bars. If the price is going up, the bars start to get smaller and smaller, this could mean that momentum is running out and a trend may reverse. Its not always the case, again, this is where having someone very familiar with charts and technical analysis can make the difference between you missing the mark, or losing out completely.
There are other indications on this chart that I use to make decisions. Now that you know what the bars mean to a certain extent, you can now follow the chart and have an idea. This will make you a better investor. You don't even have to make actual trades, but when looking at a chart for xrp, write down what you think will happen when you see these symbols. It is a safe way to see if you would have been right or not.
I use many different charts and methods when I make a trade opinion. I take this very seriously and I would not recommend anything to anyone else that I would not or am doing myself. Now that you have some more knowledge of what you are looking at, you can better track the movement of xrp. When I say that i see a potential reversal, but waiting on confirmation, you can potentially look at the chart and make your own decisions. The other side, you can wait until I see confirmation and follow what I do. Sometimes it works out, and sometimes it may not.