For the past 20 years by a been intrigued by chart analysis or technical analysis. The study of probabilities on a chart filled with numbers and waving lines was always interesting to me from the beginning.
Technical analysis is the study of probabilities, and to me it’s a must to be learned to become a great trader or investor. You must know some of the technical analysis basics.
Some of the basics include oversold and over by situations others situations are candlestick bars in the story that candlestick charts tell, or maybe you’re just a volume momentum trader all would need a little study of the probabilities.
Although fundamentals of a stock prospectus or balance sheet is still important. I believe the story is told on the chart and fundamentals can be skewed by corrupt CEOs and financial advisors.
For years I studied Technical Analysis. charts after chart after charts and finally came up with a basic system for reading charts.
My name is Russell Hunt and this video explains my bio but let’s skip ahead where I’m from, and how I learned what I know and just briefly go over how I read a chart.
My whole way of reading charts through technical analysis is to keep it simple. Charts can be convoluted with too many indicators too many lines on the chart and just too confusing and distracting to make any positive trading decisions. I learned long ago that candlesticks and a few moving averages do the trick. If I wanted to confirm any instance I would use the On Balance Volume or just simply volume readings. Volume is important because it’s not subject to price changes like a momentum indicator is. volume Independent from price action. I like to use On Balance Volume to see any positive volume indications with the price, but all in all, I usually just use candlesticks.
Candlestick charting tells a story and if you can find it. The 11 or so reversal bars you would be fortunate enough to be able to read charts classically like the old ancients rice traders in Japan. Read up on your reversal bars concerning candlesticks in your understand the charts past and the probability of its future.
Now what I like to do personally and get my charts just a little mysterious touch is the use of Tim Tillson T3’s Exponential moving averages. T3’s are exponentially smooth over six or seven times. Allowing for a smooth moving average. With these T3’s I use Fibonacci numbers to pick bottoms to see tops and to find the balance points on the chart. This is not Elliott wave technical analysis. This is my own personal way of reading charts.
When you listen to my videos. You often hear me talk about bullish retracement’s, bearish retracement’s, opposing points, and balance points all a little unusual. If you are used to the traditional technical analysis textbooks.
So with that being said a few lines on the chart with candlesticks. You can see how simple it can be to find perfect trading opportunities, and I’ve used this system for many years.
So, enjoying and let me know what you think,