Reading & Understanding Charts

[Daveee]

Hi there,

I was hoping if anyone could provide me with some helpful information or point me in the right direction in regards to reading charts & trends


Thanks

 

[wonderrman]

There is all ready a stack of info on trading on the forum, have a look around. A good start though is Secrets for Profiting in bull and bear markets by Weinstein.

w.

 

[johenmo]

above book is highly recommended - got it today.

plus "charting secrets" by Louise Bedford - just finished it.

 

[mazzatelli1000]

Trading and Exchanges: Market Microstructure for Practitioners

 

[Timmy]

Trading and Exchanges: Market Microstructure for Practitioners

I was going to ask for the author's name. Then I realised how lazy I actually am and asked my friend Google.

Larry Harris. Impressive man. Thanks for the reference Maz.

 

[Mr J]

Hi there,

I was hoping if anyone could provide me with some helpful information or point me in the right direction in regards to reading charts & trends


Thanks

Books are okay I guess, but I don't think it is necessary. I just use logic to try and interpret what may be going on. Some people talk about patterns like shooting stars, but if we think of buying/selling pressure/momentum, it's pretty clear regardless of whether or not we know the pattern. Then relate that with support and resistance, and how the testing and pressure at the points affects market psychology.

Everything you need can be found on the net anyway.

 

[Julia]

Books are okay I guess, but I don't think it is necessary. I just use logic to try and interpret what may be going on. Some people talk about patterns like shooting stars, but if we think of buying/selling pressure/momentum, it's pretty clear regardless of whether or not we know the pattern. Then relate that with support and resistance, and how the testing and pressure at the points affects market psychology.

Everything you need can be found on the net anyway.

That's OK for you. You've conceded your past experience has helped you in what you need to know.

I think the average person with no prior knowledge of charting would find a book really helpful.

I know that when I read Weinstein's book, it was like someone switching on a light!

 

[tech/a]

Everything you need can be found on the net anyway.

Law,Medical just about everything.

So If I had a heart attack/coughing up blood-- would I just diagnose myself on the net?
So If Id saved $200k and wanted to invest in the markets would you recommend I learn to do so over the net?

 

[weird]

Law,Medical just about everything.

So If I had a heart attack/coughing up blood-- would I just diagnose myself on the net?
So If Id saved $200k and wanted to invest in the markets would you recommend I learn to do so over the net?

Interesting Tech/A, makes one think.

I think in a lot of areas you have to think whether an area can have an 'expert'.

With law, which is bound by precedents and written 'law', one perhaps can be an expert.

Medicine on the other hand, which has developed through discovery, I am not sure what an expert is. As with my recent experience , you go to 5 different doctors, and get 5 different opinions. Unless you have a knife sticking in your back, or something obvious, doctors read your symptoms, then try to compute it within their knowledge based system, which is their head of likely things they were taught or learnt. Try this ... nope, try this ... nope, it is like watching an episode of House.

Reading of charts, is a different kettle of fish I believe, as one thing about markets is that it captures human emotions, which often repeat - like a fight or flight response, or greed and fear, or need to get on board too (momentum). There is so much written in books, and now on the internet, that deciding between the two, is perhaps the same depending on the 'experts' choice of delivery. I think your comment was more directed at finding an 'expert' though.

 

[wonderrman]

Books are good for to gain an basic understanding of a method. What
is more important though is to put what you have read in regards
to supply/demand, resistance/support and price/volume into action.

Using logic is fine if you are only using resistance/support and
price/volume, but I'm sure some reading would need to be done if
you wanted to learn about Elliot wave or other TA theories.

You must not forget about managing risk within your trades as well,
logic won't teach most how to do this, a few books on risk mgmt
would be good for the new trader you would think.

wonder.

 

[weird]

Books are good for to gain an basic understanding of a method. What
is more important though is to put what you have read in regards
to supply/demand, resistance/support and price/volume into action.

Using logic is fine if you are only using resistance/support and
price/volume, but I'm sure some reading would need to be done if
you wanted to learn about Elliot wave or other TA theories.

You must not forget about managing risk within your trades as well,
logic won't teach most how to do this, a few books on risk mgmt
would be good for the new trader you would think.

wonder.

managing risk, and don't forget about exits !

Which most books/internet sources fail to mention.

Gee reflecting on my library, what a waste of cash ... entry, entry, entry ... what about the rest ?

 

[tech/a]

I'm no different to pretty well all here on ASF.
I reckon Ive invested $1000s in books.
I sent 2 cartons to Trish Radge to sell when I cleaned out the library.
Ive kept about 50 and have around 30 ebooks.
I also have 4 major software programmes.

But I had to read and buggerise around with everything to know what I DONT need to trade profitably.

The answer isn't in a book nor on the net.
Not for me anyway.