📊 Types of Charts
1. Line Chart
Shows closing prices connected by lines
2. Candlestick Chart
Shows open, high, low, close (OHLC)
3. Bar Chart
Vertical lines showing OHLC data
🕯️ Candlestick Basics
Green/White Candle
Close > Open (Bullish)
Red/Black Candle
Close < Open (Bearish)
Body & Wicks
Body = Open to Close, Wicks = High/Low
📈 Support & Resistance
Support Level
Price level where buying interest emerges
Resistance Level
Price level where selling pressure increases
How to Identify:
Look for price levels touched multiple times
🔍 Common Patterns
Bullish Patterns
Hammer, Doji, Engulfing
Bearish Patterns
Shooting Star, Dark Cloud
Continuation
Flags, Pennants, Triangles
📊 Key Indicators
RSI (14)
Overbought >70, Oversold <30
MACD
Trend following indicator
Moving Averages
20, 50, 200 day trends
📊 Volume Analysis
✓ High volume = Strong move
✓ Low volume = Weak move
✓ Volume confirms price action
✓ Breakouts need volume
📋 Chart Reading Process
1. Overall Trend
Is it uptrend, downtrend, or sideways?
2. Support/Resistance
Identify key price levels
3. Patterns
Look for reversal or continuation patterns
4. Indicators
Confirm with RSI, MACD, volume
❓ Frequently Asked Questions
Which timeframe should I use?
Depends on trading style: 1min for scalping, 1hr for intraday, daily for swing trading.
Are chart patterns reliable?
They work 60-70% of the time. Always use with other confirmations.
How many indicators should I use?
2-3 maximum. Too many indicators create confusion.