What is Charting
The set of techniques used in technical analysis in which charts are used to plot price movements, volume, settlement prices, open interest, and other indicators, in order to anticipate future price movements. Users of these techniques, called chartists, believe that past trends in these indicators can be used to extrapolate future trends.
Charts are the most popular tool for traders to make decisions about when to open or close a trade. Follow chart patterns and signals to spot trading opportunities and manage risk effectively.
will it be useful to you to trade with chart?? if yes then why?
1. clear entry and exit according to chart level.
2. limit on over trading if you identify trend on chart.
3. trading outside the noise
4. lifestyle – trading with chart make you relax for continue hunting for trend and it give you personal time to relax and for your life style.
If you not willing to use charts in your trade then how it can harm your capital
1. over trading
2. fear of placing trade
3.over analyzing
4. addiction to trade
5. trading inconsistency
Charts can help you make informed market predictions
General charting strategies and technical analysis rest on the assumption that indicators that were important in the past will become important again in the future.
There are three more assumptions that charting/technical analysis rests on:
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The market is always considered as having three movements, all occurring at the same time – primary, secondary and intraday
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Averages discount everything
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The market reflects all available information