🎯 Orientation for Beginners: This chapter contains 30+ candlestick patterns, chart patterns, and indicators. That's overwhelming — and unnecessary. For the first 6 months, you need exactly these 5 concepts:
- Identify the trend — A series of higher highs AND higher lows = uptrend. The reverse (lower lows, lower highs) = downtrend. No rule → no direction.
- Support and resistance — Price levels where the market has reversed multiple times. The more often tested, the stronger. A break = a real signal.
- Volume — A breakout on high volume is more significant than one on low volume. Volume is the confirmation every technical analysis needs.
- One moving average (SMA 200) — Above SMA 200 = bullish, below SMA 200 = bearish. Sufficient as a first filter. Not 3 different lines layered on top of each other.
- One single candlestick pattern: Engulfing — Bullish Engulfing after a downtrend = possible reversal. Bearish Engulfing after an uptrend = possible reversal. That's all you need at the start.
The other sections of this chapter go deeper and are useful — but only relevant from month 7 onwards. Reading them now will confuse you. Skip them for now.
📝 Alongside chart reading: Start a trading journal now. The Mindset chapter, Module 3 shows you the format. Without a journal, you won't learn anything traceable from reading charts.