Bring the basics together by describing a chart in a consistent order. The aim is to understand what is visible before developing a trading idea.
The idea
First check the instrument and timeframe. Read the price and time axes, then examine the recent candles. Describe whether the structure is rising, falling or ranging. Mark relevant highs, lows and areas where price previously reacted. Finally, note what is uncertain and what further observation would help. Avoid treating a chart pattern as certainty.
Apply the idea
Imagine a daily chart where price has risen from $90 to $105, then pulled back toward an area around $100 where it paused previously. On a shorter timeframe, observe whether the pullback is still developing or whether price begins to stabilise. Write down both the broader direction and the possibility that the area may not hold.
Key takeaway
Read the chart in context: instrument, timeframe, candles, structure and key areas. A clear description is the beginning of analysis, not a guaranteed trading signal.
