As soon as you open the trading platform, the chart appears to you… colors, lines, and "candles" that look complicated.
But the truth? The chart is like a book, each page tells a story, and the more you learn to read it, the more you know the ending before others do!
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1️⃣ The chart = price map
It is the chart that shows the currency movement over time.
Each point represents a struggle between the seller and the buyer.
Each candle or bar is a time period defined by you: minute, hour, day, or even month.
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2️⃣ Japanese candles… The visual language of the market 🕯️
Body of the candle: shows the opening and closing price.
Upper wick: the highest price the currency reached during the period.
Lower wick: the lowest price the currency reached.
💡 The colors reveal the movement:
🟢 Green candle = the price closed higher than the opening price (uptrend).
🔴 Red candle = the price closed lower than the opening price (downtrend).
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3️⃣ The time frame… The lens to view the market 🕒
Small timeframe (minute, 5 minutes) = many details but full of noise.
Medium timeframe (hour, 4 hours) = balance between details and the big picture.
Large timeframe (daily, weekly) = clear vision of the overall trend.
📌 A golden rule for beginners: Start with the larger timeframe and then go down to the smaller one.
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4️⃣ Support and Resistance… Points of strength and weakness ⚡
Support = solid ground that stops the decline.
Resistance = solid ceiling that stops the rise.
If support is broken, the decline continues… and if resistance is broken, the rise begins.
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5️⃣ Technical Indicators… Helper Tools 🔍
Moving Average: draws you the overall trend.
RSI: tells you if the market is "overbought" or "oversold."
⚠️ Remember: indicators are not certain predictions… they are signals that need to be combined with chart reading.
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🎯 Summary
Reading the chart is not magic, but a skill.
The more you look, draw support and resistance, and try indicators, the more you will start to see patterns repeating… and this is where the professionalism begins.
📖 The chart is a book… read it well before you write your losses or gains in it.
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#TechnicalAnalysis # #Charts
