Basic charting skills you must know!
Many love to trade but have no clue on how to read a chart.
Here are a few very basic but very effective signals you should know before buying into a trade.
- Fibonacci bounces.
A fibonchai bounce indicates price action bouncing of certain levels. A 618 bounce goes to at 1.618 extension
a 718 goes to a 1.78 extension and the 50 has the potential to do either. Fib retracements are very effective and are 70% of the time very promising.
- Trends.
There are two types of trends an inner trend and an outer trend, we can find these by following the lower lows and the highers of the chart vise versus if the graph is bearish. the outer trend line is the bigger more longer trend ranging from the start of trend to the current position the inner trend line is drawn from the last previous low or high to the higher low or the lower low to allow a level of support to bounce of the trend. These are a great indications to see how strong your trade is.
3.flags
Bullish flags and bearish flags. The name says it all the pattern looks like a flag issued with a big candle as a flag pole followed by the candles acting out as the flag, This usually indicates a breakout of structure depending on the direction of the flag. These a more than oftenly a great indication and a high success rate.
- Always backup your charting with research.
before buying into a coin or a share always have background information on what your investing in. Read the companies white paper read news, read reviews on the company, read there future plans and what they have coming out soon, then with the information you have gathered run a TA or looks for the signals I have just mentioned above. This will give you a very high success rate on your investments.
Happy trading guys stay safe out there.