MARKET ANALYSIS

 

📊 All Chart Trading Steps – Step-by-Step Guide

Step 1: Choose Your Market and Timeframe

  • Market: Stock, Forex, Crypto, Commodities, etc.

  • Timeframe:

    • Scalping: 1-min, 5-min charts

    • Day Trading: 5-min, 15-min, 1-hr

    • Swing Trading: 1-hr, 4-hr, daily

    • Investing: Daily, Weekly, Monthly

Step 2: Set Up Your Charting Platform

Use tools like:

  • TradingView

  • MetaTrader (MT4/MT5)

  • Thinkorswim

  • NinjaTrader

Customize:

  • Candlestick chart style

  • Grid and background

  • Timezone and asset

Step 3: Identify Trend Direction

Use tools:

  • Trendlines

  • Moving Averages (MA, EMA):

    • 50 MA = Medium-term trend

    • 200 MA = Long-term trend

  • Higher Highs / Higher Lows = Uptrend

  • Lower Highs / Lower Lows = Downtrend

Step 4: Mark Key Levels

  • Support & Resistance: Identify horizontal zones where price bounces or rejects

  • Swing Highs/Lows

  • Round Numbers (e.g., 100, 1000)

  • Previous Day/Week Highs/Lows

Step 5: Identify Patterns or Setups

Look for:

  • Price Patterns:

    • Head and Shoulders

    • Double Top/Bottom

    • Flags/Pennants

    • Triangles

  • Candlestick Patterns:

    • Pin Bar / Hammer

    • Engulfing

    • Doji

    • Morning Star / Evening Star

Step 6: Add Indicators for Confirmation

Popular indicators:

  • RSI (Relative Strength Index) – Overbought/oversold

  • MACD (Moving Average Convergence Divergence) – Momentum shifts

  • Bollinger Bands – Volatility and mean reversion

  • Volume – Confirm breakouts or strength

Tip: Don't clutter — use 1–3 indicators max.

Step 7: Plan Your Entry

  • Wait for confirmation (e.g., candle close above resistance)

  • Enter at:

    • Breakout

    • Pullback to trendline/support

    • Pattern completion

Use Limit or Market orders based on speed.

Step 8: Set Stop Loss and Take Profit

  • Stop Loss:

    • Below support / above resistance

    • Below recent swing low/high

    • Based on ATR (Average True Range)

  • Take Profit:

    • Based on risk-reward (e.g., 1:2 or 1:3)

    • Next support/resistance

    • Fibonacci extensions

Step 9: Manage the Trade

  • Move stop to breakeven when trade is in profit

  • Trail stop to lock in profits

  • Exit partially or fully at target

Step 10: Review and Log

After the trade:

  • Note the setup

  • What worked?

  • What failed?

  • Screenshot the chart

  • Track in a trading journal (Excel, Notion, Edgewonk)

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