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| Introduction |
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The trading business is managed by people and we can actually predict people behaviour. Everyone coming in to this business aims to make money and not a single person wants to lose money. If you think carefully, you can actually be a winner, especially if you have enough resources and have the right timing. These are the two main factors in trading. We will teach you when to enter and when to stay away from the market. Sometimes it is profitable to stay away from the market too.
The foundation in technical trading is reading of charts. If you are not able to understand the charts you will not be able to appreciate the language of the market. Any language you speak if you don’t have a good vocabulary you will not be able to understand the content. The same thing is in trading. You have to learn the basics of the language before you enter trading. In any market you trade, charts are the pictorial representation of what has happened. The time frames available are 30 minute chart, 60 minute chart, daily chart, weekly chart or even a monthly chart. Depending on your holding power and the patience you have, you can be your own investor and trade at your own pace. That is the beauty of this business.
In a basic chart, the horizontal axis is the time and the vertical axis is the price of the market. There are many types of charts available in the market depending on the software you are using. They are BAR chart, Candlestick chart, Line chart, Point and Figure chart, Constant Volume Bar chart etc. The most common are BAR chart, Line chart and Candlestick chart.
The Line chart or the close only chart is the simplest of all the charts. Whatever time frame you are looking at, only the closing price is represented on the graph. Those days when computer was not invented, this chart was the easiest and the most efficient to use. Most traders especially Fund Managers believe that closing price is most important in trading and they usually closely watch this chart only. |
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