“Everything is in the graph. But sometimes, what the eyes can’t see, the spirit can imagine.”

In this lesson, I want to stay clear and concise.

There are endless ways to analyze markets.

And it is easy to get lost in trying to use too many indicators, ratios, etc.

But we often forget that one essential thing: simplicity is our best friend.

As Richard Dennis, one of the best traders in the world said:

“Keep it simple. Simple time-tested methods that are well executed will beat fancy complicated methods every time.”

So we want to keep it as simple as possible. We will limit ourselves to Price, Volume, Moving Averages, and Average True Range.

Let’s go through them one by one:

• Price: At any point during market hours, the price of an asset fluctuates to reflect the current sentiment of traders and investors. It is governed by the law of supply and demand. ****Interpreting price in trading involves analyzing price movement and pattern. It helps us identify the direction and strength of a trend and key levels of buying and selling pressure.

We will use a basic candlestick chart for our analysis. The latter looks like this:

Each one of those candles represents a time period (for instance, 1 bar = 1 minute, 1 bar = 1 day, or 1 bar = 1 week, depending on what we look for).