Set up and use the best technical stock charts

Short-term and position traders use technical stock charts a lot. They are basic cornerstones of these trading strategies. But active investors should also be familiar with using technical chart analysis.

As a swing trader you will use technical share price charts a lot. They are going to help you with decisions that you make for personal trading for a living. There are many ways to set these charts. I have tested several setups of technical stock charts. I used several different indicators and also checked several different ways to read any single graph.

Finally I realized the most profitable approach to technical analysis of share price graphs is to use SIMPLE charts. Since making this discovery I have started to promote simple usage of technical charts as it is the most profitable way of chart analysis.

Simple technical stock charts

When I started to learn how to trade I was actually creating my system and strategy. I decided to use a trading strategy based on technical chart analysis. But how could I analyze these technical graphs? I studied different books describing how to analyze graphs. I tested different indicators. Then I started to set up my technical charts.

I noticed one problem after some time. I was not able to make the correct trading decisions. Why? My graphs were too complicated. I had too many indicators on long-term and short-term price charts.

The whole picture was very messy. I was not able to read charts and make clear decision where to set up entry point, stop loss level and target level. I was also very distracted when I tried to manage trade based on chart analysis.

Look at this example of very messy technical charts I used before.

technical stock charts example bad one 01
So after some time I decided to simplify them. I decided to take away some top indicators and some bottom indicators. I finally deleted almost every indicator on my chart. And these days I use this version of share price charts:

technical stock charts example good one 0

Set up correct colors for your stock price charts

I have noticed that it is also important to set up proper colors for your charts. When your graphs are set in bad colors and also filled with a lot of indicators, then the result is very strange. I personally cannot use charts like this example I found on one financial blog.

technical stock charts bad 00
Using technical analysis is up to you. You will decide which way to analyze you are going to select for your strategy. But I believe your needs will develop during your trading career.

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