Skip to content Now that you've opened your trading account and installed Metatrader 4, it's time to learn how to read a stock chart. This is THE fundamental skill of any trader: knowing how to analyze a chart to understand what the price is doing and anticipate its next moves.
Learning to read a stock chart may seem complex at first, but with the right tools and methods, it quickly becomes intuitive.
In this chapter, we'll discover chart analysis with TradingView, the most powerful free tool on the market, then learn how to decode Japanese candlesticks and identify trends.
Independent trader since 2012
TradingView has become the global benchmark for technical analysis. This free platform gives you access to professional tools directly from your browser, without downloading anything. It's the ideal tool for learning how to read a stock chart effectively.
→ Modern, intuitive interface: Much more pleasant than traditional platforms
→ Real-time data : Free access to prices on all world markets
→ Advanced analysis tools : Over 100 technical indicators included
→ Active community : Sharing ideas and analyses between traders
→ Multi-support : Works on computer, tablet and smartphone
Go to tradingview.com
Create a free account
Optional - Download the application on desktop and mobile
Start analyzing
The free version gives you access to :
All markets and instruments
Drawing tools (lines, shapes)
Key technical indicators
Save 3 graphics
Real-time data with a slight delay
The paid version (Pro/Pro+/Premium) adds :
Real-time data without delay
Unlimited graphics backup
More indicators per chart
Customized advanced alerts
Multiscreen analysis
Priority support
Our recommendation: The free version is all you need to get started with technical analysis. You can always upgrade to the paid version later if you feel the need for advanced features.
When you arrive at TradingView, you discover a clear interface with :
The search bar : To find any asset (EUR/USD, Apple, Bitcoin...)
The main graph: Real-time price display
Left toolbar : Access to plot and analysis tools
The top bar: Selecting technical indicators and time units
For good starting out in trading and start learning graphical analysis:
Search for "EURUSD in the search bar
Select "FX:EURUSD (Forex data)
Choose candlestick display (candle icon)
Set to "1H (1-hour chart) to get started
Click on the "Settings" icon (cogwheel)
Customize background and candle colors:
light grey for the background
green for bullish candles
red for bearish candles
Once you are satisfied with your setup, click on "Save layout".
Give your configuration a name (e.g. "FX")
To make rapid progress in graph reading, it's essential to work in optimal analysis conditions.
Our educational designer, a specialist in visual ergonomics for learning, has designed the CLARITY configuration. It makes analysis more intuitive, reduces visual fatigue and provides you with optimal conditions for effective learning.
TradingView configuration - CLARITY
Download the quick tutorial to set up the CLARITY configuration on your free TradingView account.
For learn technical analysisThe first step is to understand the basics of graphics.
At TradingView, you can follow the markets in several ways. Each has its own advantages, depending on your style of analysis:
The online graph : Simple line linking closing prices. Very clean, ideal for seeing the general trend without details.
The area graph : Like the online chart, but with a colored area underneath. Visually pleasing, but not very informative.
Bars (OHLC): Each bar shows 4 pieces of information: open, high, low, close. More detailed but less visual and intuitive than candlesticks.
Japanese candlesticks : The most popular and informative format. It is with this representation of foreign exchange markets that we'll be working on.
Japanese candlesticks are the best compromise between legibility and information. They show at a glance :
→ Price trends over a given period
→ The strength of buyers vs. sellers
→ Potential reversal signals
→ Areas of market indecision
That's why 90% professional traders use candlestick charts. Japanese candles are the simplest way to read a stock chart.
In addition to classic candlesticks, experienced traders also use the Heikin AshiThis type of graphical representation smoothes out price variations and makes trends much clearer. It's a powerful tool for refine your decisions and develop your trading strategies. We explore it in depth in our training to become a trader independent.
Knowing how to read a stock chart involves mastering the following techniques Japanese candlesticks. Each candle tells you a complete story about a given period. Let's learn to read it:
The body of the candle : Colored rectangle representing the gap between opening and closing prices.
Highlights (or shadows): Thin lines showing the period's highs and lows.
Color: Often shown in green (or white) if the price has risen, red (or black) if it has fallen.
Let's take a bullish candle on a 1-hour chart:
→ Opening : Price at the start of the hour (body base)
→ Closing : The price at the end of the hour (top of the body)
→ Higher up: Maximum price reached (peak of the high wick)
→ Below: Minimum price reached (bottom of the low wick)
Candle with long body, small wicks : Clear movement, strong trend.
Candle with small body, long wicks : Indecision, battle between buyers and sellers.
Candle without body (opening price = closing price) : Doji, signal of major indecision.
Candle with long wick upwards : Rejection of high prices, possible turnaround.
These candle patterns are the basis of chartist analysis.
With TradingView, you can analyze the same asset over different timeframes. Each timeframe gives you a different perspective:
Short-term charts :
1 minute, 5 minutes: For scalping
15 minutes, 30 minutes: For day trading
1 hour: Balancing detail and overview
Medium-term charts :
4 hours: Ideal for swing trading
1 day : Vision of major trends
1 week: Long-term perspective
Your trading strategy determines your main timeframe:
If you want to trade for a few hours: Main analysis in 1 hour, confirmation in 15 minutes
If you want to keep your positions for several days: Main analysis in 4H, confirmation in 1H
If you're just starting out : Start with the 1H chart, the most balanced way to learn technical analysis.
→ See the trading method to adapt your time unit to your trading style.
Professional traders always use several time units:
Long timeframe : To identify the general trend
Average timeframe : To analyze and take a stand
Short timeframe : To refine input and output
This multi-timeframe approach is essential for a complete graphical analysis.
A trend is the general direction of a price over a given period. When you're learning to read a stock chart, correctly identifying the trend is crucial because :
→ 70% movements follow the main trend
→ It's easier to trade with the trend
→ Turnarounds are rare and "harder" to anticipate
Bull market :
Series of increasingly high peaks and troughs
Price rises overall
Buyers dominate
Bear market :
Series of increasingly low peaks and troughs
Prices are coming down overall
Sellers dominate
Neutral trend (range) :
The price fluctuates between two horizontal levels
Alternating buyers and sellers
Consolidating market
To materialize a trend :
Select "Trend Line" tool in the left-hand toolbar
Connect at least two dots: Two lows for an uptrend, two highs for a downtrend
Extends the line to the right to anticipate future supports/resistances
The more points your trend line touches, the more reliable it is.
These are the most important concepts when you want to read a stock chart correctly. Mastering these levels will allow you to anticipate price reactions:
Support: Price level at which buyers intervene en masse, preventing the downward trend from continuing.
Resistance : Price level where sellers take over, preventing the rise from continuing.
Support and resistance zones can also be used as benchmarks to define your tone. stop loss (SL) and your take profit (TP).
On your TradingView chart, look for :
Horizontal levels : Prices that have caused the market to bounce back several times
Former summits : Frequent resistance during ascent
The old hollows : Often supports during downturns
Moving averages : Act as dynamic supports/resistances
Select "Horizontal Line in the tools
Draw a line on a level where the price has rebounded several times
Observe reactions price futures on these levels
The more a level has been tested, the more significant it is.
Volume represents the number of transactions over a period. It confirms the validity of price movements:
Strong volume + price movement : Reliable signal
Low volume + price movement : Questionable signal
On TradingView, volume is displayed as a histogram at the bottom of the chart.
Here are some simple indicators to add to your charts:
Moving averages (MA 20 and 50) :
Smooth out price variations
Indicate the direction of the trend
Serve as dynamic supports/resistances
RSI (Relative Strength Index) :
Oscillates between 0 and 100
Above 70: potentially oversold market
Below 30: potentially oversold market
MACD :
Indicates changes in momentum
Buy signal when MACD line crosses above signal
Sell signal in the opposite case
→ Want to understand these indicators better? Find my podcasts trading on our online training center: I review all the main technical indicators and explain how to use them in your analysis.
Click on "Indicators at the top of the chart
Type name the desired indicator (e.g. "RSI")
Select and apply with default settings
Customize colors and settings to suit your preferences
In the next chapter
Now that you've mastered chart reading, it's time to discover the other pillar of trading: l'fundamental analysis. In the next chapter, you will learn how to :
The program
Progression
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