The trading chart is a graphical representation of the price movement of a financial asset (such as stocks, currencies, commodities, cryptocurrencies, etc.) over a specific period of time. It is the primary tool used by traders and investors to analyze the market and make trading decisions.

Why is the chart important?

Historical price analysis: It allows you to see how the price of the asset has changed in the past, helping to identify patterns and trends.

Identifying support and resistance levels: It shows price levels at which the price often pauses or reverses.

Recognizing technical patterns: It helps to discover price formations that may indicate potential future price movements (such as head and shoulders, triangles, double bottoms).

Identifying trends: You can easily see whether the price is in an upward, downward, or sideways trend.

Making trading decisions: Based on the visual analysis of the chart, traders can identify potential entry and exit points.

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