How to read chart

howtoreadchart · September 12, 2019, 5:22pm

Hello, I am Oleg Alexandrov, Market Analyst and Chart Reader. I produce Market Analysis for private clients, trade on my account, publish market overviews for Tradunity .com project

In this thread, I will share my approach to Read the Charts as a book.

What is Chart Reading

This is reading the Story of the neverending battle between buyers and sellers. By analyzing price & volume relationship, Chart Reader extracts the latest data of balance between Demand and Supply. Thus, he becomes capable to understand the Current Character of the market. Playing in harmony with the Market Character - this is the way to decrease risk and increase profits.

Warning. The main goal of the Market is to make as many fools as possible. Bernard Baruch.

Thanks for your interest. Now let’s go to the practice of Chart Reading. Chart Never Lies.

petefader · September 13, 2019, 3:24am

Sounds good. Let’s see what you got.

howtoreadchart · September 13, 2019, 9:14am

I have never ever heard the real truth as regards to market action on television or in newspapers. As a trader, you will find you are constantly mislead by lies, roomers, misinformation. So on the basis of this information arriving on your doorstep will give you and thousands of other traders a completely wrong feel as to the markets real intent

Believe me, the markets move on the shifts of large blocks of professional money, tipping the balance of supply and demand one way or another, which to the trained observer you can read.

Supply and Demand

We have all heard the pundits in the money section of our news programs telling us that this market or that market, has gone up, down or sideways, for some specific reason or another.

The price of oil has gone up and the stock market has fallen. - for example.

Of course, at another time the price of oil will rise and the stock market will rise too - but nobody ever seems willing to explain this apparent dichotomy. The simple truth is that nobody really knows why news may have caused the markets to move in one direction or another. News doesn’t actually drive the markets, it follows it.

Prices are driven by supply and demand. When demand is strong and supply is limited prices rise. When demand is weak, or supply is excessive, prices will head lower. If demand is strong and the news is, bad prices may still move lower, but the market will react less strongly than if the demand had been weak or there was too much supply. The market may even rise despite the worst possible news.

The key to trading successfully is to determine the balance of supply and demand in the market.

Many good traders have a sense of this without even trying, there are ‘natural’ traders who always seem to be on the right side of the market, but if you are not able to do this instinctively you can learn to do it through Chart Reading Method? And you will be amazed at how much you will learn in a short time.

I will use Acronyms. You will understand these simple terms shortly…

ND — No Demand; NDW, or ND-Wave — No Demand Wave
DB — Demand Bar; DW, or D-wave — Demand Wave
SB — Supply Bar; SW, or S-wave — Supply Wave
NS — No Supply; NSW, or NS-wave — No Supply Wave
SLK — Stop Loss Killer; SLKT — SLK at the Top (bearish sign), SLKB — SLK at the bottom (bullish sign)
EVR — Effort versus Result; EVRW — EVR wave; EVRT — EVR at the Top, EVRB — EVR at the bottom
SOS — Sign of Strength
SOW — Sign of Weakness
ZOS — Zone of Strength
ZOW — Zone of Weakness
SFDB — Support from Demand Bar
RFSB — Resistance from Supply Bar
TF - TimeFrame (period)
Cha Cha - Change in Character

howtoreadchart · September 13, 2019, 1:38pm

Have you ever seen that massive bad news come to the public at the market bottoms? And the best optimistic news bombards public heads at the market tops.

So, better not to read the news, read the chart. It has the language that can be translated into the opinion. This is the way of judging the market by its own behavior.

howtoreadchart · September 13, 2019, 2:31pm

#BAC #stock Chart Reading

petefader · September 14, 2019, 4:41am

Good stuff. I hope this thread picks up and people stop using things that don’t work.

1odi · September 14, 2019, 5:58am

u don t want to have dumb money(herd) chasing the market anymore? haha

MattyMoney · September 15, 2019, 6:50pm

This is a great sentence.

1odi · September 15, 2019, 7:10pm

i d go as far as to say that news are the noise, cos often times i d get crushed and mislead by such events causing me to lose money, till i found volume ofc. not a pro trader by all means, but i ain t losing money overall anymore.

MattyMoney · September 15, 2019, 7:13pm

I’ll be looking into volume now, see if I can Use it to improve my strategy.

1odi · September 15, 2019, 7:17pm

dude, i can t trade without it anymore, sure i have some emas, pivots, round numbers, all that to add confluence when i m thinking to get in a trade,(judge the probability if u will) but volume is the nr1 thing i trade of off, plus i use it to exit a trade as well.

1odi · September 15, 2019, 10:02pm

1odi · September 16, 2019, 3:33am

howtoreadchart · September 16, 2019, 1:31pm

After Distribution range (AB wedge 0.644-0.640), #NZDUSD produced the decline toward 0.636.

I expect a stalling of decline around this level because of two arguments:

we have NS+DB sequence on background.
Bears completed the run equaled the height of the AB wedge. So, target C=B-AB is accomplished.

Watch for Panic Selling on faster TFhttps://i.imgur.com/ajJz9eZ.png

howtoreadchart · September 16, 2019, 1:57pm

NZD on the faster TF

1odi · September 16, 2019, 2:02pm

caught a nice scalp on gold, took some profit, SL to BE, let a portion run, maybe fill the gap?
healthy volume on that push down(highest of today), curious to see the reaction, i m still bearish but if it s gonna go green i d take something more out cos it might end the day ranging or whatnot, or maybe gonna be agressive selling haha

howtoreadchart · September 16, 2019, 2:39pm

I hold short on gold since 1550. I would to hold it longer but contract will expire soon.

1odi · September 16, 2019, 2:43pm

nice, and the reason ur holding is? daily?

howtoreadchart · September 17, 2019, 2:05am

yes.

The recent moves on #BTCUSD market confirm the cruel nature of the market. Its goal - is to produce losses for the majority. Here is how it does work.

A) Downmove after a period of sideways dull. The bearish activity attracts traders (and their bots) into following the bearish impulse. Traders enter short positions (that is why we can see increase on BTCUSDSHORTS)

B) But if the market is really weak, it not interested in making profits for this portion of just-established shorts. That is why we got the second move B. It knocks out sellers from market by triggering their Stop Losses. This is an SLK (stop-loss-killer) move. Green spike on clusters represents the activation of BUY-stop orders. (that is why we can see a decrease on BTCUSDSHORTS). So, when majority is knocking out from shorts - you should sell. This is a way to act in harmony with winning minority.

A+B sequence tells a more bearish story. So, price has more chances to make the next step down.

1odi · September 17, 2019, 8:13am

what i see is a break and retest on the 1hr, u have that big up bar that closes in the middle, SOW, supply coming in type of deal, and the bearish bar as confirmation, but u also have the increase in volume on the break, with a bullish reaction, so i dunno if that s stopping vol, can t see the hole pic, i d wait for a sec retest to be honest of that vol