Use Charts to Pick Losers
Let’s Explore Chart Reading Basics
The most important concept about chart reading, is that charts tell a story. Most trading experts will tell you the story is an emotional one. Historical charts map the emotional swings of all traders participating in the markets over a certain period of time.
If you’re a long-term hodler then your chart timeframe will be long, say weeks, months and years. But if you’re more of a short-term trader then your timeframe could be measured in minutes and hours or perhaps hours and days. Each timeframe will either tell a different story or confirm the dominant story.
Many, many books and courses have been created to help investors better understand market sentiment and how charts capture that sentiment in graphic form. This lesson offers a sky view look at charts and covers the basics like:
- Define Technical Analysis
- Define Fundamental Analysis
- Price and Volume Charts
- Identifying Trends and Trend Lines
- Recognizing Support and Resistance
For a more detailed look at making sell decisions using charts consider taking the course in our Get Started series called Sell Crypto for Profit!