INTERMEDIATE LEVEL (Step 11–20: Understanding the Market)

[John Esther]

11. Learn How to Read Price Charts
Price charts are like the heartbeat of the market. They show you where a stock has been and give clues about where it might go. At first, they may look confusing, but with time, patterns become clearer.
Start simple — look for trends. Is the price generally going up, going down, or moving sideways? Understanding this alone can already improve your timing and decision-making.

 

[Chinyere]

11. Learn How to Read Price Charts
Price charts are like the heartbeat of the market. They show you where a stock has been and give clues about where it might go. At first, they may look confusing, but with time, patterns become clearer.
Start simple — look for trends. Is the price generally going up, going down, or moving sideways? Understanding this alone can already improve your timing and decision-making.

Think of price charts as the market’s diary—they record every battle between buyers and sellers over time.
Start with the basics:
Uptrend: Higher highs and higher lows → buyers in control
Downtrend: Lower highs and lower lows → sellers dominating
Sideways: Range-bound → balance between buyers and sellers
Even just spotting the trend gives you a huge edge in timing entries and exits.

When looking at a chart, do you focus more on the overall trend or the short-term fluctuations?