# Understanding of trading charts
1. Candlestick Chart
This is the most commonly used chart.
Green Candlestick = Price has increased
Red Candlestick = Price has decreased
Each candlestick shows 4 price points:
Open
Close
High
Low
2. Support and Resistance
Support: A level where the price tends to stop falling.
Resistance: A level where the price tends to stop rising.
Understanding these levels helps identify where price reversals may happen.
3. Trend Lines
Trend lines show the market direction:
Upward line = Uptrend
Downward line = Downtrend
Flat line = Sideways or range-bound market
4. Moving Average
A line that shows the average of previous prices.
SMA (Simple Moving Average)
EMA (Exponential Moving Average)
It helps identify the direction of the trend.
5. Volume
Shows how much trading activity is happening.
Higher volume means stronger price movement.
6. Use of Indicators (e.g., RSI, MACD)
RSI: Shows whether the market is overbought or oversold
MACD: Indicates trend reversals.
Think and grow rich
