How to read the charts.
When you are going to trade you are eventually going to develop your own charts. This means you are going to make a combination of indicators that works right for you. To get the perfect chart you are going to have to trade for a while and see what works best for you. Trading takes experience and the more you trade the more you will get a feeling how it works. “There are no shortcuts to any place worth going.”
Where can I build the perfect chart?
When you are going to create your charts you will need a program in which you can create without limits, and that program is Tradingview. In Tradingview you can choose the coins, charts, indicators, time ranges and more.
The right charts.
There is a wide number of different charts. There are Line charts, Bar charts Volume charts, Tick charts and many more but the most used chart of them all is the candlestick chart.
The candlestick chart:
To get a clear view of the price during the previous time period many people use the candlestick chart. The candlestick chart indicates four different prices. It indicates the price the coin opened and closed but also the highest price the coin was and the lowest price the coin was.
The right indicators for you.
There are a large number of different indicators you can choose from. Even the big boys on Wall Street use the most popular indicators for the simple reason it gives you a great view of what is going on whit the coin.
The Bollinger Bands.
A popular indicator is the Bollinger Bands. This indicator consists of tree lines which all have a different meaning. The first or top line means that the maximum is reached, the coin will probably decrease in value. The second or middle line represents what the graph is expected to do. And the last line stands for below average, if the graph reaches this line it is likely to rise again.
The Stochastic is an indicator that gives you a great indication when a coin is going to up and when a coin is going to go down. It calculates when the coin is oversold or overbought. The indicator consists of two lines, one stand for the number of people who are buying and the other stands for people who are selling. These two lines move between two horizontal lines the top one stands for overbought when the 2 lines reach this level the coin is probably going to decrease in value. When the coin reaches the bottom line it means it is oversold and will probably rise in value.
Similar to the Stochastic the MACD also consists of two lines one who indicates the people who are buying and the other stands for the people who are selling. The MACD doesn’t calculate when its overbought and oversold giving you a great overall view of what the coin is going to do. When the Stochastic indicates that a coin is going to go up or down you can always check whit the MACD to get a clear view.
The perfect beginners combination.
These tree indicators combined make one of the most popular and reliable charts there are. It is one of the most used charts for beginning traders since it is simple to read, reliable and you can easily start experimenting with different indicators to develop your own trading style.