I just need a little help with key things to pay attention to on the charts.
Well, this is quite a broad question as I can make an argument for a number of things you should pay attention to on the charts. Put I will try to be brief as I also believe that complexity isn't necessarily a good thing in this market.
Well just before I begin listing just a few things to look at, it is important that you have a trading system/strategy which you are applying, I will go under the assumption that you have a system in mind and that it involves the use of a few indicators to understand market conditions.
Support and Resistance
Try to identify levels of price rejections in the market. These often times are areas where price repeats past behaviours and you could capitalize on such patterns.
Chart Pattern
Some traders use different charts such as
Bar Chart or
Candlestick Chart to view the market. Whichever one you choose to use, I recommend getting familiar with the different type of patterns, these help add context to what is going on in the market, thelp help tell you about liquidity, momentum, rejections and a lot more, not to mention the use of indicator which further supports this. These help your help you decision when it comes to directional bias or entry/exit executions.
News
This isn't on the charts per say, however, it is an event that the market tends to reacts to, unpredictably I might add. Consider finding out if there are any high impact news on the day you wish to trade and what time they are scheduled to occur, you may decide to avoid such volatile sessions on the market and trade on a different day altogether.
Time of Day
Self explanatory, but yes, some individuals take note of the time of day you are trading. You may wish to be aware of the time of day you trade, again understanding market conditions, specially if you like to know the influence that banks have on the market, helps get a clearer picture of the market and how you wish to participate in it.
These are honestly just a few things to look at when analysing a chart. As you continue to trade, over time, it will ultimately come down to your preferred way of interpreting the market and the tools you choose to use to accomplish this, hence why I say if you have a trading system then that takes care of most if not some of the information you need to look at on a chart. The rest are other trading habits and your own psychology when participating in this business.
I wish you success in your trading!
