Blog/Education
EducationNov 22, 202510 min read

How to Read Token Charts

Technical analysis basics every Solana trader needs to know. From candlesticks to patterns.

🕯️ Understanding Candlesticks

Candlesticks show four key prices for each time period: Open, High, Low, and Close (OHLC).

Green/Bullish Candle

Price closed higher than it opened. Buyers won this period.

Red/Bearish Candle

Price closed lower than it opened. Sellers won this period.

The body shows open-to-close range. The wicks (thin lines) show the high and low reached during that period.

📊 Support & Resistance

Support is a price level where buying pressure tends to overcome selling. Think of it as a "floor" that price bounces off.

Resistance is where selling pressure overcomes buying. It's a "ceiling" that price struggles to break through.

💡 Pro Tip: When support breaks, it often becomes resistance (and vice versa). Watch for these "flip" levels.

📈 Volume Analysis

Volume shows how many tokens were traded. It confirms the strength of price moves:

  • Price up + High volume: Strong bullish signal, real buying interest
  • Price up + Low volume: Weak move, might not sustain
  • Price down + High volume: Strong selling pressure, bearish
  • Price down + Low volume: Lack of conviction, could reverse

🎯 Key Patterns to Know

W-Pattern (Double Bottom)

Price makes two lows at similar levels, then breaks up. Bullish reversal signal.

Learn more →

M-Pattern (Double Top)

Price makes two highs at similar levels, then breaks down. Bearish reversal signal.

Bull Flag

Strong move up, then consolidation in a channel. Usually continues upward.

Bear Flag

Strong move down, then consolidation. Usually continues downward.

Timeframes Matter

Different timeframes tell different stories:

  • 1m-5m: Scalping, very short-term trades. Noisy.
  • 15m-1h: Day trading. Good for memecoins and active trading.
  • 4h-1d: Swing trading. Clearer trends, less noise.
  • 1w+: Long-term investing. Major trends only.

⚠️ Tip: Always check multiple timeframes. A bullish pattern on 5m might be noise in a bearish 1h trend.

🔧 Chart Tools

  • DexScreener: Best for Solana token charts, real-time data
  • GeckoTerminal: Good alternative with similar features
  • Birdeye: Solana-specific with holder analytics
  • Wallet Bot: Built-in charts with whale activity overlay

Let AI Find Patterns For You

Wallet Bot's pattern detection automatically scans for W-patterns and other setups across thousands of tokens. Get alerted when opportunities appear.

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