Chart Reading 101

[hwsteele]

This Thread is to help explain chart reading as I see it.
Then after I explain it I will talk about how I use it with the market timing that I do.
I will use Forex hour charts as my examples to keep it simple and most relevant.
Then I will do some "live" trading for a while to give some real world examples.
When I get my computer up to snuff I will add some videos if wanted.

 

[Blaiserboy]

This Thread is to help explain chart reading as I see it.
Then after I explain it I will talk about how I use it with the market timing that I do.
I will use Forex hour charts as my examples to keep it simple and most relevant.
Then I will do some "live" trading for a while to give some real world examples.
When I get my computer up to snuff I will add some videos if wanted.

I am sure that many of us will look forward to your insights.

 

[hwsteele]

Okey-dokey the kids are at school and my girl friend is at cycling class (I learned to ride with out training wheels when I was six but what can I say) the market is giving me a pull back right now so...

Folks lets get this party started...

First and foremost I want to explain the age old extra simple, but every one I know seems to get confused by it at least in the beginning, Higher Highs-Higher Lows and Lower Highs-Lower Lows.

This is how I use the information gathered from the "HH-HL and LH-LLs.
Just in case you are wondering the above is how I will refer to them from now on.

Now this is what I will be talking about mostly in this thread with a little support and resistance thrown in. After that I will put some timing in the mix and explain at 350 for twenty minutes.
OK, sorry that one was really bad, but what can I say:cheesy:

 

[hwsteele]

OK, we all know what a HH and a HL are right?
If you look at just the HIGHS of the cycles in the price chart and the current high is HIGHER than the most recent HIGH before...

Then you have a HH.

 

[tomorton]

After that I will put some timing in the mix and explain at 350 for twenty minutes.QUOTE]


So these are going to be pie charts then?

 

[hwsteele]

The same thing goes for the LOWS...
If the current LOW is HIGHER then the most recent LOW before it then you you have a HL.

 

[hwsteele]

After that I will put some timing in the mix and explain at 350 for twenty minutes.QUOTE]


So these are going to be pie charts then?

 

[hwsteele]

OK, lunch is now over and moving on a bit...

This is a picture that shows a LOWER high.

 

[hwsteele]

And this is some LOWER lows...

 

[hwsteele]

Now I know that the posts I have made so far are WAY basic but I just want to make sure every one understands what I am talking about when I say HH and HL, or LH and LL.

Now the basic understanding is simply when you have HHs and HLs you are in an up trend.

AND

When you have LHs and LLs you are in a down trend.

 

[hwsteele]

Most people understand about the up and down trends as indicated by HHs and HLs, or LHs and LLs.

The part that gets people most confused, from what I have seen, is what to think/do when you have something like the following...

You have a Low then A HH. Then you have a HL followed by a HH.
Nothing hard yet right?
Well after the HH you then get a LL followed by a new HH.

Let me show you an easy stick figure chart to help you visualize what I'm talking about...

 

[hwsteele]

Or we could have the complete opposite thing happen...

 

[hwsteele]

The question then becomes how to treat the market when it does that kind of Who Hash.

The answer is simple but kind of rambles to be complete.

In other words it's not hard to understand, it just take a while to express all of the thoughts or rules so to speak.

 

[megamuel]

So what's the answer then? ;-)