The above chart shows how using candles, trendlines and patterns can give you a pretty good idea of where price might go. While not every indication is highlighted, price patterns, candle patterns, and trendlines are differentiated with labels and colors. Also note the many small Fibonacci retracements both on the way up and the way down. Minimally, you should get a general idea of how these indicators enable the charts “speak” to you and begin to understand what I mean when I say in trading, we:
- Look at pictures
- Draw pictures, and
- Do some simple math (I’ll cover the “math” part later)
And there’s good news…
You’ll see more charts like this one, but with even more detail and all of the AIME indicators within the course. In fact, by the time you’re finished and with practice, you should be able to read any chart with proficiency and accuracy. That said, I really recommend that you print some of your own charts and identifying what’s been covered here. Doing so will help you better understand how I use these tools. More importantly, you’ll sharpen your chart-reading skills so you can confidently and profitably navigate price charts on your own sooner rather than later!
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