How to Read Line Charts

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How to Read Line Charts? – Thread

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Line Charts get their values from closing prices of the time frame in use.

To read Line Chart, see waves alternating from ascending to descending in either an Overlap or No-Overlap Structure.

We will work on following Crude Daily Chart

#CrudeOil #oilrefinery #oilandgas

In the above chart, Line Chart after a fall is ascending and overlapping as depicted below.

Note marking in Red shown on the chart

#MCX #natgas

Wave 3 4 5 6 7 marked is an Ascending Overlap Wave.

7 below 4 is an Overlap in Waves and hence the Wave is Ascending and Overlap.

Overlap Structure is maintained to have a weak structure that is more sideways and lacking momentum that cannot produce an Impulsive Wave.

They are considered ‘trending upside’ because of consecutive Higher Lows (HL’s)

But in Momentum only when there is No-Overlap.

When the HL of any wave is higher than previous HH it is in Momentum and is an Ascending No-Overlap Wave

Crude does not have yet such a No-Overlap Structure after fall to call it in Bullish Momentum

From this stage – What can make Crude Bullish?

When the Overlap in Daily Crude Chart turns No-overlap, Crude will have a Bullish Structure

For it to happen it must unfold as below.

Support on any previous High of an Ascending Overlap Wave turns Wave even into a Bullish Impulse

If this is not done then can expect Wave closes below High of 87.60 continuing as Ascending Overlap Structure as below

After this Overlap, if it forms another HL the trend still remains in Uptrend as below

After a HL if it has to fall it may do a LH as below

LH can trigger forming a Lower Low LL as depicted and fall is eminent

The above is a Simple Way to Flow with Price for Trading with waves.

Simple is easier.

Thank you for reading! 

Update – Learning to Use Line Chart!

Crude!

A New HL on closing means uptrend continues but since the waves are overlap the structure is weak for upside

#Crude #crudeoiltrading #Oil