In this article, Coach Tommy will guide you to understand a deeper perspective beyond basic trading. Many people think reading charts is just about watching price lines go up and down or staring at candlesticks to guess which way the market will move. But for Coach Tommy, reading charts is about “reading the behavior of the crowd” recorded in price and time.

 

Think of yourself in the market as a “hunter in the wild”. You can’t chase prey all day—you need to know where to hide, when to wait, and when to strike when the opportunity is greatest. A common problem is that most traders do the opposite—they chase the price, enter out of fear of missing out, and exit out of fear of losing. In the end, they get exhausted without achieving the profit they intended.

 

To avoid these mistakes, Coach Tommy shares 5 key steps to reading charts like a hunter:

 

1️⃣ Start with the big picture, not the small details

One major mistake beginners make is starting with a small timeframe, like 5 or 15 minutes, because it moves quickly. In reality, the main trend is usually determined by larger timeframes, like Daily or Weekly. By starting with the big picture, you’ll know “which way the crowd is moving,” then zoom in to smaller timeframes to find precise entry and exit points.

 

2️⃣ Find the “hunting grounds” of price

On a chart, these areas include Support, Resistance, and Demand/Supply Zones:

🔹 Support – areas where buying pressure is likely to return

🔹 Resistance – areas where selling pressure is likely to return

🔹 Demand Zone – points where strong buying occurred in the past

🔹 Supply Zone – points where strong selling occurred in the past

Coach Tommy avoids trading in the middle of the chart, as it’s high-risk. Instead, he waits for price to reach key zones and observes candlestick behavior.

 

3️⃣ Use Price Action as the “trigger”

Key zones alone are not enough, because price can break through. You need confirmation signals from price action, such as:

🔸 Pin Bar – signals price rejection

🔸 Engulfing – indicates a strong reversal

🔸 Breakout + Retest – confirms a trend change

 

4️⃣ Timing is the heart of a hunter

A skilled hunter doesn’t shoot every time they see prey. They wait until the target is within range and “three confirmations” are met before entering:

1. Clear big picture (trend or structure)

2. Price reaches a key zone

3. Price Action confirms

 

5️⃣ Exiting is just as important as entering

Many focus only on the entry and forget the exit. Always define your exit before entering:

✅ If right → exit at Take Profit

❌ If wrong → exit immediately at Stop Loss

This helps control emotions and prevents holding losses or letting profits slip away.

 

Summary

Reading charts like a hunter isn’t about guessing; it’s about waiting in the spot where probability is on your side. Start with the big picture, identify key zones, wait for behavioral confirmation, and follow your entry and exit plan. This way, you won’t chase prices like most traders—instead, you can strike accurately and consistently increase your chances of profit.

 

Article by Coach Tommy, RoboAcademy

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Disclaimer: Investing is risky. Investors should study the information before making investment decisions.