24. First Things to Look for in the Chart
First Things First: Your Chart’s “Are My Pants On?” Check
Alright, you’ve just opened your trading platform, and suddenly you’re staring at a chart that looks like a spaghetti monster threw up on a rollercoaster. Don’t panic! Before you start drawing squiggly lines or consulting your crystal ball, we’ve got a “First Things First” routine.
Think of it as your chart’s equivalent of checking if you locked the door, turned off the stove, and, most importantly, if you remembered to put on pants before leaving the house.
You’re not looking for hidden aliens or secret Illuminati symbols just yet. You’re simply asking:
“What’s the Market’s Mood?” (Is it trending, ranging, having a tantrum?)
“Where are the Big Walls?” (Spot those Key Levels – the market’s favorite bouncy castles or brick walls.)
“Who’s Really Driving?” (Is it an uptrend train, a downtrend bus, or a sideways tricycle?)
These initial checks are crucial. They set the stage, filter out the noise, and stop you from making an impulsive decision based on a single, misleading flicker. Get these basics right, and the rest of your analysis won’t feel like you’re trying to solve a Rubik’s Cube in the dark.