These are the truly reliable, no-nonsense storytellers of your trading chart. Unlike their fidgety, still-forming brethren (who are still deciding if they’re going to be a hero or a zero), a closed candlestick has made up its mind. It’s done with its drama for that specific time period. The opening act, the high point, the low point, and crucially, the grand finale (the closing price) are all set in stone. You can trust a closed candlestick; it’s already had its existential crisis and is now ready to share the definitive truth of its trading session, no more surprises!
24. First Things to Look For in the Charts
When first approaching a chart to analyze market conditions and identify potential trading opportunities, a structured observation process is crucial. The initial focus should be on establishing the broad context and identifying the most impactful elements of price action.
Here are the first things a professional typically looks for in the charts:
Timeframe Context:
What it is: Immediately identify the timeframe of the chart you are viewing (e.g., daily, weekly, 4-hour).
Why it’s first: This sets the strategic context. A setup on a 15-minute chart has a vastly different implication than one on a weekly chart. Many professionals start with higher timeframes (like daily or weekly) to understand the overriding trend before drilling down.
Overall Trend (Direction and Strength):
What it is: Is the market moving generally upwards (uptrend), downwards (downtrend), or sideways (ranging/consolidation)? Assess the strength of this trend.
Why it’s first: Trading with the trend (the “path of least resistance”) significantly increases the probability of success. It’s often said, “The trend is your friend.” Visual cues include higher highs/higher lows for uptrends, lower highs/lower lows for downtrends, and horizontal price action for ranges. Moving averages can quickly confirm this.
Key Support and Resistance Levels:
What it is: Identify significant horizontal or diagonal price levels where the market has previously reversed, stalled, or shown strong reaction. These are often previous swing highs/lows, pivot points, or psychological round numbers.
Why it’s first: These levels are battlegrounds where supply and demand are evident. They serve as potential turning points, targets, and critical zones for placing stop-loss orders. The market tends to respect these levels.
Current Price Action and Candlestick Formation:
What it is: Observe the current and most recent candlesticks. What are their sizes, body colors, and wick lengths? Are there any notable candlestick patterns forming (e.g., strong bullish/bearish candles, dojis, engulfing patterns, hammers)?
Why it’s first: This tells you the immediate battle between buyers and sellers and can signal continuation, indecision, or potential reversal right at the current moment or near key levels.
Volume Confirmation:
What it is: Look at the volume accompanying recent price moves.
Why it’s first: Volume provides conviction. A strong price move (up or down) on high volume is generally more reliable than the same move on low volume, which might indicate a lack of widespread participation or interest.
By quickly scanning these five elements, a trader can rapidly form an initial assessment of the market’s condition, identify potential opportunities, and determine whether a deeper analysis is warranted.
💰Quotes:
“Enter the trade — then sit on your hands like a monk!”
“We don’t click and panic. We click and chill.”
“Traders who wait, get paid. Traders who fidget… donate!”
“We enter the trade, then do absolutely nothing like pros.”
“Let the market work. You’re not its boss.”
💰Normal Tone Slogans:
“Enter with a plan, then let the trade play out.”
“The work is in the setup — the result comes with patience.”
“We don’t babysit trades. We trust our edge.”
“Entry is action. Waiting is discipline.”
“After entry, emotion has no place — only patience.”
💰 Chart Analysis Slogans (Normal Tone):
“Start with the trend — it sets the direction.”
“Identify key support and resistance before anything else.”
“Let structure guide your strategy.”
“Always know where price has reacted before.”
“The trend, levels, and price action tell the whole story.”
“Look for clarity, not chaos.”
“The chart reveals its plan — observe before acting.”
“Good analysis starts with a clean, focused view.”
“Respect the levels, trust the structure.”
“Before every trade, understand the environment.”
💰Chart-Scanning Slogans:
“Before you trade, check the stage!”
“Trend first, trade later.”
“No support? No entry. No resistance? No exit.”
“Read the chart like it owes you money.”
“If price is confused, so should you be — stay out!”
“Look left before you get smacked right!”
“No pattern? No party.”
“Don’t trade before checking the market’s mood!”
“The chart always speaks — if you’re willing to listen.”
“Zoom out, chill out, plan your route.”
💰First Things to Look for in a Chart
The Trend
🔍 Is the market trending up, down, or sideways?
→ “Trade with the flow, not against it.”
💰Support and Resistance Levels
🧱 Where has price reacted strongly in the past?
→ “These are your map markers — respect them.”
💰Key Candlestick Patterns
🕯 Inside bars, pin bars, engulfing candles — any signals forming?
→ “Candles tell stories. Learn their language.”
💰Overall Market Condition
🌍 Is the market volatile, quiet, ranging, or explosive?
→ “Don’t bring trend strategies to a choppy fight.”
💰Event Areas / Reaction Zones
⚡ Where have big moves started or reversed before?
→ “History loves to repeat — especially in loud places.”
💰Confluence Zones
🎯 Are multiple signals lining up (trend + support + pattern)?
→ “When signals stack, so does your edge.”
💰🔍 Market Structure & Direction (Trend)
Ask yourself:
✅ Is the market trending or ranging?
✅ Are we making higher highs/lows (uptrend) or lower highs/lows (downtrend)?
✅ Are we inside a sideways box (consolidation)?
💰📊 Why This Comes First:
It defines the context for all your trades
→ You don’t want to go long in a downtrend or short in a strong uptrend.
💰📊 Why This Comes First:
It defines the context for all your trades
→ You don’t want to go long in a downtrend or short in a strong uptrend.
💰It tells you what to expect
→ Trending = momentum setups.
→ Ranging = reversal and breakout setups.
💰It saves time
→ No need to analyze further if there’s no clean structure.
💰🧠 Pro Tip:
“Structure first. Everything else second.”
Once you see structure, then you can look for:
📍 Key levels (support/resistance)
🕯️ Price action signals (pin bars, engulfing)
📈 Confluence (EMA, RSI, Fib, etc.)