Usercel Trade Fitness Gym | Why Look at the Charts?

Yu Cheru-san's Profile

Active on YouTube as a "Muscle Trader." Known for his technical analysis of EUR/USD, with subscriber numbers rapidly increasing. Catchphrase: “Trading is more about the physical than the mental!”

Twitter：https://twitter.com/EURUSDsenmon

※This article is a reprint/edited version of an article from FX Tactics.com June 2020 issue. Please note that the market information written in the main text differs from the current market conditions.

What is the purpose of looking at charts? Essential mindset for traders

This time, we'll fundamentally explain how to "read charts." First, has anyone ever thought about why you look at charts? It’s so obvious that many traders may struggle to answer when asked again.

There was a time when there were no charts (candlesticks) and trades were made only with price panels. Charts are simply visualizations of the movements on the price panel.

So, what is the reason for looking at charts? Can anyone answer? The correct answer is to capture the bias in orders. That’s how I view it. Banks’ traders also stare intently at the price panels for the same reason.

“Sell orders keep coming in, but the price doesn’t go down.”

“So, the big players are supporting it with purchases.”

Well, their thought process might be like this. Unlike pros, we individual traders can’t spend all day staring at the price panel (laughs).

Returning to the chart discussion, suppose when looking at the candlesticks, there is a sequence of bearish candles indicating a downtrend. Beginners might think, “Will it keep going down forever?” but in the FX market, prices never move in a single direction forever.

Because, after all, FX is about currency exchange.