Charting is one of the corner stones of trading, and can often be one of the only tools a trader will use. But that wasn’t always the case. Before computers had reached maturity, charts were created by hand, a thankless task. Chartists were ridiculed and pitied— but not anymore.
Now, within moments a trader is able to glean huge amounts of information from a single chart. Chart patterns can indicate that a price direction is about to change or continue. Even those traders who are critics of technical analysis will occasionally use charts.
Being able to read a chart is vital. So this lesson will go over the commonly adopted western charting patterns, which will give you the ability to identify and predict potential trade setups based on the chart shapes occurring on your chart.
After you become an expert on charts, that’s when you can start to incorporate further enhancements to it, like looking at volume and adding a further indicator.