Chart reading 101 made easy
I'm going to get straight to the point. There are three lines that I pay attention to when trying to figure out where to place my trades when dealing with the market.. The three lines are called the exponential moving average or you can call it just the moving average, but I like to use the exponential moving average itself.. The platform that I use are Robinhood and webull ... Once you sign up on either app you'll be able to customize the chart to your liking. Okay, back to the EMAs also known as exponential moving average. Out of the three Ema lines there's one line that usually crosses two of those EMAs depending on the direction that the EMA is crossing. For example, the EMA is crossing the two lines going up, your trade should be for the upside. if it's crossing the two EMAs lines heading down Your trade should be for the downside If the EMA is crossing down. In the picture attached to this lesson here, will show you the three lines, along with the Christmas color candlesticks that are red and green, that too also has a line inside of it and that is the main exponential moving average that you will be looking at crossing the other two lines. All three lines are your exponential moving averages you can go into the settings to change the colors as well for it to be more visible to you and your liking, but other than that, this is the first part of reading the chart and knowing where to place your trade To get a little more in-depth on these exponential moving averages the line with the Christmas colors is the line that you will be paying attention to, as far as watching if it will cross the other two exponential moving averages For example The market always opens at 9:30 Eastern standard Time, And as you can see, where I placed the arrow is almost where the market opens. I just want to place the arrow there so you know that is also a exponential moving average. Starting from where the arrow is the exponential moving average started at the bottom and started heading upwards and crossed the first line. So therefore your trade should be on the upside. It continued to cross the second line. Therefore, you should hold your trade to collect more money from the market as it heads up. now the trick to learn is to know how long you'll be staying in the trade. And that will be our next lesson.