Learn to read market charts
A price chart shows how the price of an asset has moved over a chosen period. The basics are quickly learned: the horizontal axis is time, the vertical axis is price, and each candle or point summarises the trading of one period — its open, high, low and close. Everything more elaborate, from moving averages to volume bars, is built on top of that simple frame.
- Always check the timeframe and the scale before reading anything into a shape;
- Learn the plain candlestick before any exotic indicator;
- Remember that indicators summarise the past, they do not forecast;
- A chart with no context — no dates, no source — is not evidence.