How to read the Bybit futures chart?

Bybit's futures chart offers candlestick patterns, volume, open interest, and liquidation heatmaps to guide trading decisions—customize timeframes, add indicators like RSI or MA, and set alerts for precise entries and exits.

Jul 23, 2025 at 02:08 am

Understanding the Bybit Futures Chart Interface

When you open the Bybit futures trading interface, the chart is typically displayed in the central area of the screen. The default chart type is usually a candlestick chart, which is essential for analyzing price movements. Each candle represents a specific time frame—such as 1 minute, 5 minutes, or 1 hour—depending on your selection. The green candles indicate that the closing price was higher than the opening price (bullish), while red candles mean the closing price was lower (bearish). The wicks (or shadows) above and below the body show the highest and lowest prices during that period.

Customizing Timeframes and Indicators

To change the timeframe, locate the dropdown menu at the top of the chart labeled “1m”, “5m”, “1h”, etc. Click it to select your preferred interval. This is critical for aligning your strategy with your trading style—day traders often use 5m or 15m, while swing traders may prefer 4h or 1d. To add technical indicators, click the “Indicators” button (usually a plus sign or “fx” icon). Popular choices include:

• Moving Averages (MA) to identify trends
• Relative Strength Index (RSI) to detect overbought or oversold conditions
• Bollinger Bands to assess volatility
  Each indicator can be customized by clicking its name in the legend below the chart and adjusting parameters like period length or color.
  

  Reading Volume and Open Interest

  
  Below the main price chart, you’ll see a volume bar chart. Volume bars show how much trading activity occurred during each candle. High volume during a price increase suggests strong buying pressure, while high volume during a drop indicates strong selling. Next to volume, Bybit often displays Open Interest, which reflects the total number of active futures contracts. A rising open interest alongside rising prices confirms trend strength. If open interest drops while prices rise, it may signal weakening momentum—a key detail for risk management.
  

  Using Drawing Tools for Technical Analysis

  
  Bybit’s chart includes drawing tools for marking support/resistance levels, trendlines, and Fibonacci retracements. To access them:
• Click the “Draw” icon (pencil symbol)
• Select “Horizontal Line” to mark support/resistance at key price levels
• Choose “Trendline” to connect swing highs or lows
• Use “Fibonacci Retracement” after identifying a recent swing low to high (or vice versa)
  For example, if Bitcoin moved from $60,000 to $70,000, draw the Fibonacci tool from the low to the high. The chart will auto-generate levels like 38.2%, 50%, and 61.8%—these are potential reversal zones where traders watch for entries or exits.
  

  Interpreting Liquidation Heatmaps and Funding Rates

  
  Bybit overlays a liquidation heatmap on the chart (toggle via “Settings” > “Show Liquidation Levels”). This shows clusters of long and short liquidation prices. If a large red zone appears just above current price, it means many long positions will be liquidated if price reaches that level—this can trigger a rapid price drop. Conversely, a green zone below suggests short squeezes may occur. Also, check the funding rate (displayed near the chart). A positive rate means longs pay shorts; negative means shorts pay longs. Sudden spikes in funding can signal over-leveraged positions and potential reversals.
  

  Setting Up Alerts and Risk Parameters

  
  To stay proactive, set price alerts:
• Right-click on the chart at a key level
• Select “Add Alert”
• Enter the exact price and choose notification type (email or in-app)
  This helps you monitor levels without constant screen time. For risk control, always set stop-loss and take-profit orders when placing trades. Click “SL/TP” when opening a position, then input prices based on your chart analysis—e.g., stop-loss below a support candle, take-profit near resistance. These tools prevent emotional decisions and lock in profits or limit losses automatically.
  

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  FAQs

  Q: How do I switch from candlestick to line chart on Bybit?
  
  Click the chart type icon (usually a bar chart symbol) next to the timeframe dropdown. Select “Line” from the menu. This simplifies the view by connecting only closing prices, useful for spotting long-term trends without candle noise.

  Q: Why are some candles hollow or filled on Bybit?
  
  Hollow (green) candles mean the close was higher than the open—bullish momentum. Filled (red) candles mean the close was lower than the open—bearish momentum. This visual cue helps traders quickly assess market sentiment per period.

  Q: Can I save my chart settings on Bybit?
  
  Yes. After customizing indicators, colors, or layout, click the floppy disk icon (“Save Layout”) in the top-right of the chart. Name your layout (e.g., “Day Trade Setup”) and it will persist across sessions—even on mobile.

  Q: What does the “Mark Price” line on the chart represent?
  
  The Mark Price (thin blue line) is Bybit’s fair price, calculated from multiple spot exchanges. It prevents manipulation and is used for liquidations—not the Last Traded Price. Always compare it to the current candle to avoid unexpected liquidations.