Setting your chart up
By having a consistent chart set up, traders can analyse the markets a lot more efficiently. Your chart – and what it tells you – will become second nature.
The basic chart set up is:
- Select your chart type and stick to it – we use candlestick charts.
- Set the right timeframe for your trading style.
- Select the right market (and product).
- Add moving averages to assess the trend – we recommend 20, 50 and 200 simple moving average.
- Add MACD to confirm momentum – use the 12,26,9 set up recommended in the MACD course.
- Add stochastics to indicate overextended market conditions – use the 14,3,3 setting. You can use RSI as an alternative.
You are now set up to analyse.
Key Learning Points
- By having a consistent chart set up, traders can focus on the analysis.
- A basic chart set up includes moving averages to assess the trend, MACD for momentum and stochastics or RSI to analyse overextended conditions.
