Here is my Opinion on reading Price Charts ...

Chart reading dont make sense just for the sake of reading charts. You dont get anything out of it.

Nevertheless charts can help to identify trading opportunities if you know how to use chart reading the right way. The best way using them is as a benchmark to adjust your risk while interpreting ongoing chart information after you opened up a trade.

But it is hindsight interpreting of what ppl were doing in the past. Nothing more!

You are always late when trading charts and have to react instead of acting (just one approach is worse to me: technical indicators). The most trading approaches that are using charts to forecast moves and bet on those forecast to earn money have no significant edge to stay profitable in the long run. You need to spot self fullfilling prohecies and those sometimes appear and sometimes dont.

With a lot of experience in a market niche you can succeed if you have the skill to just focus on that very special setup. But another problem then appears: A lack of opportunity which decreases your overall earnings. More risk per trade is essential when trading the rarest chances.

I use charts for Daily Trading as one part of my strategy but I also mix it up with fundamentals respective volume analysis and in some cases seasonals.


For Intraday Trading you should get bigger advantage when using a proper and institutional linked orderbook/ flow  approach - especially trading stocks. Because it allows you to look deep inside the market in real time not hindsight. Give you the chance to truly anticipate where the smart money is going to position itself. And that's what you want as a small trader: position yourself with the Big Ones.

Cheers ...