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Principles of successful stock chart analysis

Best stock chart reading principles
for stocks and etf trading

You must prepare every day to trade stock by using a stock chart analysis. You need to look at a lot of stock charts or stock market index charts to identify what happened and what could happen during the next few days.

Predict the future? Yes! You have to use candlestick charts to find the most probable scenario, which can deliver results in the near future and to find best stock trading opportunity.

Then, you have to prepare your own stock trading setup like I do in my everyday trading. Don’t worry. I’ll show you simple basic principles I prefer to use during chart analysis. My chart reading and trading is based on basics described on this page:

support and resistance levels

Every time when you look at a chart, you have to ask if the price is near some important level of support or resistance.

These levels you can identify as horizontal price levels , but it’s not the only possible way to identify support and resistance.

Major levels could be found easily on historical stock charts using historical stock price data .

These stock market analysis tools are also very helpful


Moving averages are very usable technical stock indicators. There are several different options how to use them.

Important technical stock market analysis tools

Candlesticks

Stock chart reading


Stock market price chart tips


Stock & market trend analysis

The next important piece of information for a stock trader is to know everything about stock trends. Is your stock trending? It’s very important to know how to find the answer to this question. Use stock chart analysis for this purpose.

You can find:


It’s also very good to know what the actual market stock trading trend is. It’s good to know why stock market trend analysis is important.

Stock volume analysis

Another important indicator you have to take into consideration when you’re trading is volume . Stock volume analysis is a very powerful technique in the hands of a clever trader.

I use this simple technique for volume monitoring during trading day and to decide if the current level of volume is important or not.




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