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Showing posts from January, 2014

How to Read a Chart & Act Effectively

Introduction This is a guide that tells you, in simple understandable language, how to choose the right charts, read them correctly, and act effectively in the market from what you see on them. Probably most of you have taken a course or studied the use of charts in the past. This should add to that knowledge. Recommendation There are several good charting packages available free. Netdania is what I use. Using charts effectively The default number of periods on these charts is 300. This is a good starting point; Hourly chart that’s about 12 days of data. 15 minute chart its 3 days of data. 5-minute chart it’s slightly more than 24 hours of data. You can create multiple "tabs" or "layouts" so that it’s easy to quickly switch between charts or sets of charts. What to look at first 1. Glance at hourly chart to see the big picture. Note significant support and resistance levels within 2% of today’s opening rate. 2. Study the