Introduction Charts can be intimidating, especially if you’re new. Candles, indicators, lines everywhere. But once you understand the basics, charts become one of your greatest allies. In this guide, we’ll show you how to approach charts with clarity and confidence.
1. Start with Candlestick Basics Each candle tells a story. A green candle? Buyers were in control. A red one? Sellers took over. By reading patterns like doji, engulfing, or pin bars, you can spot market shifts early.
2. Understand Support and Resistance These are price levels where the market has reacted before. Support is where buyers step in. Resistance is where sellers push back. Knowing these zones helps you plan entries and exits more logically.
3. Keep Indicators Minimal You don’t need five indicators. Start with one or two. Moving averages and RSI are simple and effective when used right. The key is not to overload your chart.
4. Zoom Out Before You Zoom In Always check the bigger trend first. A setup might look great on a 15-minute chart, but if the daily trend is against you, it might not last. Start from higher timeframes and work your way in.
5. Practice on Real Charts Daily The only way to get better is to practice. Mark support, resistance, draw trendlines, and observe price behavior. Over time, you’ll build intuition.
Conclusion Reading charts isn’t about finding the perfect setup. It’s about understanding context. At BullishElephant, we teach you how to read what the market is saying so you can respond with confidence, not confusion.