Why you want to understand stock chart Analysis

One of the biggest reasons why people lose money when they try to invest is, they invest when they shouldn’t be investing.  How many times have you heard the phrase or statement “the heard or masses are always wrong”?

Wouldn’t it be nice if you could separate yourself from the masses and make better decisions that relate with the timing of investing for better odds or potential of making profits?

Well….  Look no further because we have a solution right here my friend!  We have some of the best stock chart indicators that are used by the most successful traders and investors for short-term and long-term gains.

In this article we are going to show you a chart reading platform that we use for ALL our stocks and cryptos.  We are also going to help you utilize some of the best indicators that apply to reading stock charts and price action of assets.  This way, next time you decide you want to invest…. you can have a MUCH BETTER idea of whether the timing is right for you or not.

At this point you may think this all sounds great however, what chart system are we using and where do you even get started?

Well… keep reading because we are going to show you the chart reading system we use for making better investment decisions!

 

The Trading View chart system

If you want a really good chart reading system that you can use to set up charts on your favorite stocks and cryptos then you will want to go to https://www.tradingview.com/ .

 

 

It’s FREE to join and once you have an account set up, you can start adding assets to your portfolio or account that you have created.

Once your account is set up you can do all sorts of cool things.  Trading view allows you to follow the latest ideas that revolve around trend analysis, harmonic patterns and MORE.  For the sake of staying focused on the point behind this article, we will NOT give you a in depth review of what all Trading view offers.  We can save that for a later article!

For now, you will want to add some of your favorite stocks or cryptos to your view able chart system.  Once you have signed in you should see a screen like the one seen below.

 

 

 

In the RIGHT-hand corner where it reads (ADD SYMBOL) go ahead and enter the ticker symbol of the paper or digital asset you are wanting to start tracking.  It will bring up a list off to the left-hand side, where you can select the stock to add to your list.

CLICK on the stock you have added, you should see a chart that looks like what we have set up in the picture below.

 

 

Next, CLICK on (Full featured chart)

 

Now that you have your list set up and your featured chart is showing the asset you want to add indicators too, you will want to set up your indicators.  Keep reading because this is where things get INTERESTING.

 

The stock chart indicators

There are so many stock indicators that you can use it can get very confusing and fast.  To avoid any confusion from using too many indicators, we are going to just focus on a couple indicators here.

The reason why we are only focusing on a couple indicators, is of course, to keep you from getting bombarded by too much information and to keep your charts from becoming too hard to read.

In order to understand these indicators, we are going to show this next few steps in a video for a better explanation.  This way you can see what we are talking about in real time and it will make more sense.

WATCH VIDEO:

 

 

Tips for reading charts

We hope the video explained how the indicators work and how you can utilize them in a way to help better understand price action for an asset over the different time frames that are available to track.

Now we would like to give you some TIPS that will help you with tracking these price actions that will help give you an edge on making better decisions when it comes to buying and selling.

Tip #1 – Shorter time frames will increase your risk.  If you want to lower this RISK, go with longer time frame charts such as the weekly and daily charts.  There is more emotions associated with shorter time frames and historically, investors make MORE PROFITS from longer periods of time rather than shorter time frames.

 

Tip #2 – The RSI indicator does not necessarily reflect that just because you are in over sold territory or over bought territory that things will change, and the RSI will reverse its direction right away.  RSI levels can STAY in over sold or over bought territory for a long period of time when the asset is in a STRONG uptrend or down trend. 

 

Tip #3 – Make sure you turn your candles default over to the bars instead.  Candles will represent the price action in GREEN and RED.  Having your price action set in color has been known to activate the trader’s emotions more so than the (bars) option, which is seen in grey in black instead.  Grey and black doesn’t trigger the emotions associated with green and red as much from a psychological perspective.

 

These are just few tips to help you with chart reading.  We must also warn folks that this is not FINANCIAL advice and that you should do your own research when investing.  There is RISK involved with any investment you make and what we are showing you here is simply what we like to do to increase our ODDS of taking profits on our own investments.  We are not responsible for any LOSSES you might take on a investment following these tips.