Trading Education Trading Help How To
- By Lucien Bechard
- Updated March 4, 2024
8 min read
SHARE THIS ARTICLE
You need to know how to read trading charts to grow your capital and live off your trading. Master chart reading, and you can now ‘see the market. I’ve laid out the keys below to give you a good grounding.
Candlesticks eBook & Wallpapers
Price action is the most important indicator to learn when trading. It shows what's happening real time. Our free eBook covers the most popular patterns and how to trade them. Custom-made desktop wallpapers included.
Get eBook
Table of Contents
- How to Read Stock Trading Charts
- Time Frames
- How to Read Daily Stock Trading Charts
- Candlestick Charts
- How to Analyze and Read Trading Charts
- Time Frames
- What Time Frame Do Professional Traders Use?
- Other Bullish Patterns
- Other Bearish Patterns
- Final Thoughts: How to Read Stock Trading Charts
- Frequently Asked Questions
How to Read Stock Trading Charts
- Here are the simple steps on how to read tradingcharts:
- Understand thatprice action and candlesticks are the most important indicator
- Study the most popular candlestick patterns and reversal patterns
- Look for big patterns like cups and handles, ascending triangles, head, and shoulders
- Look for smaller patterns like bull flags and pennants
- Search for single reversal patterns such as dojos, hammers, spinning tops, shooting stars
- Look at two pattern reversals, such as haramis and engulfing patterns
- Watch for reversal three pattern completion, such as morning stars and evening stars
- Connect horizontalsupport and resistancelevels
- Connect highs and lows to determine the overall trend of the stock
Time Frames
Trading charts can view data over different intervals, such as monthly, weekly, daily, and intraday. Intraday charts commonly used include hourly, 15-minute, 5-minute, and 2-minute charts.
Which chart is best for intraday? It is the most popular hourly chart, but some traders swear by tick charts. It depends on your trading style and strategy.
Even if you day trade, you still want to keep up with the longer-term trends and understand how to read stock charts for day trading.
Although not commonly used, monthly charts provide data for years or decades. Likewise, weekly charts offer longer-term data analysis, usually for over six months.
Check out ourtrading service to learn how to read trading charts with different styles.
How to Read Daily Stock Trading Charts
What’s a daily chart? It’s one of the most commonly used charts for analyzing intermediate to short-term periods.
A daily chart works well to analyze periods of over six weeks. It is also an ideal chart to “read” the market.
The following price data is commonly displayed on charts, with each bar or candlestick representing your selected time interval.
- Opening Price: The price an instrument first trades for a given time interval.
- High Price: The top price of an interval’s trading range, offering price resistance.
- Low Price: The bottom of an interval’s trading range, providing price support.
- Closing Price: The price an instrument lasts trades before the subsequent time interval begins.
Ouronline trading courses teach you different trading strategies to use the daily chart.
Candlestick Charts
The candlestick chart resembles a bar chart in many ways. Both relay the same information. However, a candlestick chart focuses more on opening and closing prices.
Meanwhile, a bar chart draws more attention to the high and low prices. Understanding candlestick patterns will be your best ally in learning how to read trading charts.
What do the candlesticks mean on a stock chart? For starters, it depends on your chosen time interval. On a monthly chart, each candlestick or bar represents a month.
Likewise, on a weekly chart, each one represents a week. Then, on a daily chart, it’s a day. On an hourly chart, it’s an hour, then so on, right down to ticks.
COURSE |  |  |  |
|---|---|---|---|
| DESCRIPTION | Learn how to read penny stock charts, premarket preparation, target buy and sell zones, scan for stocks to trade, and get ready for live day trading action | Learn how to buy and sell options, assignment options, implement vertical spreads, and the most popular strategies, and prepare for live options trading | How to read futures charts, margin requirements, learn the COT report, indicators, and the most popular trading strategies, and prepare for live futures trading |
| INCLUDED | Daily watch lists • Trade rooms • Trading scanners • Discord • Live streaming Day Trading > | Daily watch lists • Trade rooms • Options scanners • Discord • Live streaming Options > | Futures target levels • Trade rooms • Real time teaching • Discord • Live streaming Futures > |
How to Analyze and Read Trading Charts
Let’s explore how to read candles in more detail since this chart is popular for advanced traders. The thin vertical line on a candlestick chart represents the high and low prices, like on a bar chart.
However, instead of horizontal lines for open and closed prices, the candlestick chart uses a wider bar called the “body.” Meanwhile, the highs and lows, called “wicks,” stick out of the body at both ends, resembling candles.
If the price drops below the opening price, the body appears red (or black). Conversely, if the price rises above the opening price, the body appears green (or clear or white).
If nobody appears, it signifies that the price opened and closed at the same amount.
Despite similarities, a candlestick chart gives a better view than a bar chart of the emotions driving the market.
Once you recognize the patterns, candlestick chart analysis indicates trends of optimism or panic selling.
Time Frames
Most candlestickpatterns occur over a short term of one to three days. Also, the pattern’s location within the trend bears significance.
Day traders find them invaluable. Therefore, it’s necessary to know how to read stock charts for day trading to recognize the patterns.
Popular patterns include pennants,cups and handles, head and shoulders, and ascending or descending triangles.
So, which candlestick pattern is bullish? Several bullish patterns exist. For example, a bullish engulfing pattern reflects when the bulls take control.
It appears when a long green candlestick body follows a candlestick with a short red body. This patternsignalsthat the price could rise higher.
Patterns are extremely helpful when it comes to tradingpenny stocks along with large-cap stocks. A safepenny stocks listwill always get plays based on the charts.
What Time Frame Do Professional Traders Use?
- Professional day traders use daily charts, 1-hour charts, and 5-minute charts for setups.
- Then, they use 1 minute for entries and exit on 1-minute or 5-minute charts.
- Professional swing traders use 1 hr chartsch1-hr daily and 5 min c5-minute for setups.
- They enter in 1 minute or 5 minutes. Then exit on a 1 hr or daily chart
- Long-term traders use daily, weekly, and monthly charts and exit the same depending on how long-term they are
Other Bullish Patterns
- Belt Hold
- Doji Star
- Harami
- Harami Cross
- Hammer
- Morning Star
- Morning Doji Star
- Piercing Line
- Three White Soldiers
Likewise, multiple bearish patterns exist. For example, a bearishhanging manoccurs during an uptrend. The candlestick displays a long lower wick at least two times longer than the body.
Also, it exhibits barely any upper wick, giving it the appearance of a hanging man. Check out ourlive trading rooms to see candlesticks in action.
Other Bearish Patterns
- Belt Hold
- Engulfing
- Harami
- Harami Cross
- Shooting Star
- Dark Cloud Cover
- Three Black Crows
Final Thoughts: How to Read Stock Trading Charts
Nearly all charting software features the option of candlestick charts. And most provide real-time streaming data for using trading charts live.
Also, many brokerages offer free candlestick charts as part of their complementary platforms.
Additionally, somecompanies, like TradingView, offer free online trading charts. View a free charthere.
Frequently Asked Questions
What Chart and Time Frame Is Best for Trading?
What Are Line Charts?
A line chart is the most simple of the chart types. The line constitutes the closing prices for a set time frame. Although it doesn't provide as much information as most charts, it highlights closing prices. Line charts help traders see trends more easily. The reason is that it focuses solely on what many traders consider the most important price data.
What Are Bar Charts?
A bar chart adds even more price data by including the daily price range. Therefore, you still get the closing price. But it also incorporates the opening, high, and low prices. Bar charts display vertical lines that begin and end with the high and low prices. Meanwhile, short horizontal lines on the bar show the open and closed prices. The open price is located on the left side of the bar. At the same time, the close price is to the right. If the price closed lower than it opened, the bar shows red. Conversely, if the price closed higher than it opened, you see a green (blue or black bar).
Related Articles
How to Find Stocks Before They Spike
January 31, 2024
Have you ever wondered how to find stocks before they spike? It is a challenging task involving research, analysis, some luck, and speculation. Several tools
Read More »
How to Invest in Web3 Stocks
August 10, 2022
Do you know how to invest in Web3? It’s the future of the internet. With all of the talk about the upcoming Metaverse, you might
Read More »
List of Music Stocks
August 1, 2022
Are there music stocks to trade? Since the beginning of time, the music industry has grown and evolved. We listened to it on the radio,
Read More »
Price Averaging When Trading
July 27, 2022
When I worked for a financial institution, I met too many investors who allocated funds to an investment once and waited for it to grow.
Read More »
How to Invest in Movie Stocks
May 2, 2022
In honor of the recent Oscars and Will Smith slapping Chris Rock, we’ll look at different ways of investing in the movie business. Some platforms
Read More »
How To
How to Find Stocks Before They Spike
Read More »
Loran February 29, 2024
How To
How to Invest in Web3 Stocks
Read More »
Lucien Bechard February 20, 2024
How To
List of Music Stocks
Read More »
Lucien Bechard January 29, 2024
How To
Price Averaging When Trading
Read More »
Lucien Bechard February 22, 2024
STOCK TRADING SERVICE
Our chat rooms willprovide you with an opportunity to learn how to trade stocks, options, and futures. You’ll see how other members are doing it, share charts, share ideas and gain knowledge.
Our traders support each other with knowledge and feedback. People come here to learn, hang out, practice, trade stocks, and more. Our trade rooms are a great place to get live group mentoring and training.
TRADE ALERTS “SIGNALS”
The Bullish Bears trade alerts include both day trade and swing trade alert signals. These are stocks that we post daily in our Discord for our community members.
These alert signals go along with our stock watch lists. Our watch lists and alert signals are great for your trading education and learning experience.
We want you to see what we see and begin to spot trade setups yourself.
REAL-TIME STOCK ALERTS SERVICE
We also offer real-time stock alerts for those that want to follow our options trades. You have the option to trade stocks instead of going the options trading route if you wish.
Our stock alerts are simple to follow and easy to implement. We post entries and exits.
Also, we provide you with free options courses that teach you how to implement our trades as well.
STOCK TRAINING DOESN’T NEED TO BE HARD
Stock training doesn’t need to be hard. But it sure feels hard when you don’t know where to turn for legitimate knowledge. There are tons of places to learn, but what makes us different?
Well, for starters, we’re just real everyday people who like trade stocks. We’re not gurus portraying a fancy lifestyle of cars and jets and beaches. Can you obtain those things with what we teach you? Sure you can. Is that what motivates us when teaching you how to trade?
Nope. What we really care about is helping you, and seeing you succeed as a trader. We want the everyday person to get the kind of training in the stock market we would have wanted when we started out.
WHY WE’RE DIFFERENT
What else makes us different? When it comes to the stock market, we’ve won, we’ve lost, we’ve lived, and learned. We’ve been through the ups and downs in the market and figured out what really matters. The Charts…Candlesticks = PRICE ACTION! We’ve created a site that passes all this knowledge on to you.
We don’t charge you an arm and a leg for the stock training we give you. We charge a modest amount that goes towards running our day-to-day operations and paying for our invaluable team moderators that are passionate about teaching YOU!
That’s about it. We could charge more, but we have a pay it forward, give back mentality. It’s not about the money. The best and most important thing for us is YOU. We want to feel good about what we do, and the results and reviews speak for themselves.
Those emails we get, the feedback, the success we see. That is what our educational trading community is all about. We hold no secrets back. Our trading edge is your trading edge.
STOCK TRAINING DONE RIGHT
We don’t care what your motivation is to get training in the stock market. If it’s money and wealth for material things, money to travel and build memories, or paying for your child’s education, it’s all good. We know that you’ll walk away from a stronger, more confident, and street-wise trader.
In our stock trading community, you’re going to get it all. Futures, options trading, and stocks. Not just penny stocks either. Small, mid, and large caps. Each day we have several live streamers showing you the ropes, and talking the community though the action.
There’s no catch, no smoke or mirrors. What you see is what you get. If you’re looking to change your life, or someone else’s, we’re here to help you reach that goal. Get started learning day trading, swing trading, options, or futures trading today!
Click Hereto start your 7-day free trial.
TRADING STOCKS IN THE BULLISH BEARS COMMUNITY
Yes, we work hard every day to teach day trading, swing trading, options futures, scalping, and all that fun trading stuff. But we also like to teach you what’s beneath the Foundation of the stock market.
Tell you the TRUTH about how the market works. The importance of controlling your emotions and having a proper mindset when trading. We’re really passionate about teaching you this stuff!
Money isn’t our #1 priority in life. YOU are. Our members come first. Making sure you get comfortable with trading is our priority.
We have members that come from all walks of life and from all over the world. We love the diversity of people, just like we like diversity in trading styles. It creates an environment much like a university or college.
TRADING ROOMS AND LIVE STOCK TRAINING
Each day our team does live streaming where we focus on real-time group mentoring, coaching, and stock training. We teach day trading stocks, options or futures, as well as swing trading. Our live streams are a great way to learn in a real-world environment, without the pressure and noise of trying to do it all yourself or listening to “Talking Heads” on social media or tv.
We will help to challenge your ideas, skills, and perceptions of the stock market. You will learn and grow as a trader. Every day people join our community and we welcome them with open arms. We are much more than just a place to learn how to trade stocks.
Feel free to ask questions of other members of our trading community. The Bullish Bears are a very helpful crew. We realize that everyone was once a new trader and needs help along the way on their trading journey and that’s what we’re here for. To give you a hand up along your trading journey.
Click Hereto try our trading community free for 7 days.
FREE ONLINE TRADING COURSES
If you’ve looked for trading education elsewhere then you’ll notice that it can be very costly.
We are opposed to charging ridiculous amounts to access experience and quality information.
That being said, our website is a great resource for traders or investors of all levels to learn about day trading stocks, futures, and options. Swing trading too!
On our site, you will find thousands of dollars worth of free online trading courses, tutorials, and reviews.
We put all of the tools available to traders to the test and give you first-hand experience in stock trading you won’t find elsewhere.
Our content is packed with the essential knowledge that’s needed to help you to become a successful trader.
It’s important to treat day trading stocks, options, futures, and swing trading like you would with getting a professional degree, a new trade, or starting any new career.
Invest the proper time into your Trading Education and don’t try to run before you learn to crawl. Trading stocks is not a get-rich-quick scheme. It’s not gambling either, though there are people who treat it this way. Don’t be that person!
STOCK TRADING COURSES FOR BEGINNERS
The Bullish Bears team focuses on keeping things as simple as possible in our online trading courses and chat rooms. We provide our members with courses of all different trading levels and topics.
If you’re a beginner, intermediate level, or looking for expert trading knowledge…we’ve got you covered.
We have a basic stock trading course, swing trading course, 2 day trading courses, 2 options courses, 2 candlesticks courses, and broker courses to help you get started. Free.
Just choose the course level that you’re most interested in and get started on the right path now. Become a leader, not a follower. When you’re ready you can join our chat rooms and access our Next Level training library. No rush. We’re here to help.
Click Hereto take our free courses.
