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How To Read Chart

Discussion in 'Market Predictions and Reports' started by howtoreadchart, Sep 12, 2019.

  1. howtoreadchart

    howtoreadchart Recruit

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    Hello, I am Oleg Alexandrov, Market Analyst and Chart Reader. In this thread, I will share my approach to Read the Charts as a book.

    What is Chart Reading

    This is reading the Story of the neverending battle between buyers and sellers. By analyzing price & volume relationship, Chart Reader extracts the latest data of balance between Demand and Supply. Thus, he becomes capable to understand the Current Character of the market. Playing in harmony with the Market Character - this is the way to decrease risk and increase profits.

    Warning. The main goal of the Market is to make as many fools as possible. Bernard Baruch.

    Thanks for your interest. Now let's go to the practice of Chart Reading. Chart Never Lies.
     
  2. howtoreadchart

    howtoreadchart Recruit

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    What does this Chart tell?


    1) Minor Buying Culmination around center red line, Price found resistance from the red line

    2) SLKB on bottom + Bullish Cha Cha in the blue circle. This quick reversal was done deliberately in order to: a) catch as many automatic SLs as possible b) let no buyers enter longs at best prices

    3) Minor Buying Culmination #2 around a top parallel red line. It has also a sign of SLKT above 10.2k. Note, we have high-volume bar of weakness on the background.


    [​IMG]

    What is Outlook?

    From the quick view, bears have control. We have lower highs A-B-C. And we have to expect another attack on the green zone of strength with the major region of support 9.9k-10.0k. But look the volume on the run from the high C until the latest bar. Volume is not impressive. It looks that down-wave from C to 10k has not powered with Selling Pressure to overcome existing support 9.9k-10.0k. This is the Bullish Argument.


    So, I expect another attempt of bulls to reverse market upward from the Green Basement.


    SLKT+ND+SB sequence will invalidate this view.
     
  3. howtoreadchart

    howtoreadchart Recruit

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    Here are some Acronyms used in my Chart Reading. Follow this thread, you will understand the inner market logic behind the bars.
    • ND — No Demand; NDW, or ND-Wave — No Demand Wave
    • DB — Demand Bar; DW, or D-wave — Demand Wave
    • SB — Supply Bar; SW, or S-wave — Supply Wave
    • NS — No Supply; NSW, or NS-wave — No Supply Wave
    • SLK — Stop Loss Killer; SLKT — SLK at the Top (bearish sign), SLKB — SLK at the bottom (bullish sign)
    • EVR — Effort versus Result; EVRW — EVR wave; EVRT — EVR at the Top, EVRB — EVR at the bottom
    • SOS — Sign of Strength
    • SOW — Sign of Weakness
    • ZOS — Zone of Strength
    • ZOW — Zone of Weakness
    • SFDB — Support from Demand Bar
    • RFSB — Resistance from Supply Bar
    • TF - TimeFrame (period)
    • Cha Cha - Change in Character
     
  4. howtoreadchart

    howtoreadchart Recruit

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    It is not, and never has been or ever will be a good idea to tell people when to buy or sell, because once you enter a trade, your emotions take over, and it is these emotions that will impede the trader.

    I have never ever heard the real truth as regards to market action on television or in newspapers. As a trader, you will find you are constantly mislead by lies, roomers, misinformation. So on the basis of this information arriving on your doorstep will give you and thousands of other traders a completely wrong feel as to the markets real intent

    Believe me, the markets move on the shifts of large blocks of professional money, tipping the balance of supply and demand one way or another, which to the trained observer you can read.

    Supply and Demand

    We have all heard the pundits in the money section of our news programs telling us that this market or that market, has gone up, down or sideways, for some specific reason or another.

    The price of oil has gone up and the stock market has fallen. - for example.

    Of course, at another time the price of oil will rise and the stock market will rise too - but nobody ever seems willing to explain this apparent dichotomy. The simple truth is that nobody really knows why news may have caused the markets to move in one direction or another. News doesn't actually drive the markets, it follows it.

    Prices are driven by supply and demand. When demand is strong and supply is limited prices rise. When demand is weak, or supply is excessive, prices will head lower. If demand is strong and the news is, bad prices may still move lower, but the market will react less strongly than if the demand had been weak or there was too much supply. The market may even rise despite the worst possible news.

    The key to trading successfully is to determine the balance of supply and demand in the market.

    Many good traders have a sense of this without even trying, there are 'natural' traders who always seem to be on the right side of the market, but if you are not able to do this instinctively you can learn to do it through Chart Reading Method? And you will be amazed at how much you will learn in a short time.

    Follow this thread, you'll be satisfied.
     
  5. georgequayle

    georgequayle Private

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    Worth reading
     
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  6. howtoreadchart

    howtoreadchart Recruit

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    Have you ever seen that massive bad news come to the public at the market bottoms? And the best optimistic news bombards public heads at the market tops.

    So, better not to read the news, read the chart. It has the language that can be translated into the opinion. This is the way of judging the market by its own behavior.
     

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  7. howtoreadchart

    howtoreadchart Recruit

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    [​IMG]
    #BAC #stock chart reading
     
  8. howtoreadchart

    howtoreadchart Recruit

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    After Distribution range (AB wedge 0.644-0.640), #NZDUSD produced the decline down to 0.636.

    I expect a stalling of decline around this level because of two arguments:

    1) we have NS+DB sequence on the background.

    2) Bears completed the run equaled the height of the AB wedge. So, target C=B-AB is accomplished.

    [​IMG]
     
  9. howtoreadchart

    howtoreadchart Recruit

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    NZD on the faster TF
    [​IMG]
     
  10. howtoreadchart

    howtoreadchart Recruit

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    You can read more than 1000 of my articles with Chart Readings on the pages of Tradunity.com project
     

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