TradingView Basics: Understanding Charts for Smarter Trades

00:00:00,160 --> 00:00:04,240
hello traders and welcome back to the

00:00:02,159 --> 00:00:06,160
comm lucro channel in today's chapter of

00:00:04,240 --> 00:00:08,240
our course technical analysis for day

00:00:06,160 --> 00:00:09,920
traders from basics to advanced we're

00:00:08,240 --> 00:00:11,679
diving into a fundamental aspect of your

00:00:09,920 --> 00:00:13,440
trading journey understanding trading

00:00:11,679 --> 00:00:15,200
charts charts are the backbone of

00:00:13,440 --> 00:00:16,800
technical analysis helping traders

00:00:15,200 --> 00:00:18,640
interpret price movements and make

00:00:16,800 --> 00:00:20,320
informed decisions whether you're just

00:00:18,640 --> 00:00:22,800
starting or refining your skills

00:00:20,320 --> 00:00:25,199
mastering chart interpretation is key to

00:00:22,800 --> 00:00:26,880
identifying opportunities in the market

00:00:25,199 --> 00:00:29,039
in this video we'll break down the

00:00:26,880 --> 00:00:31,279
essentials what a chart is why it's

00:00:29,039 --> 00:00:33,040
critical for technical analysis and how

00:00:31,279 --> 00:00:35,440
different types of charts like line

00:00:33,040 --> 00:00:38,000
charts bar charts and candlestick charts

00:00:35,440 --> 00:00:40,079
reveal patterns and trends we'll also

00:00:38,000 --> 00:00:42,239
cover time frames and how selecting the

00:00:40,079 --> 00:00:44,320
right one can significantly impact your

00:00:42,239 --> 00:00:46,320
trading strategy this is especially

00:00:44,320 --> 00:00:48,160
valuable for day traders those looking

00:00:46,320 --> 00:00:49,840
to capitalize on short-term price

00:00:48,160 --> 00:00:51,840
movements within the same trading

00:00:49,840 --> 00:00:53,680
session by understanding these core

00:00:51,840 --> 00:00:55,440
concepts you'll gain the ability to read

00:00:53,680 --> 00:00:58,960
the market with confidence and make

00:00:55,440 --> 00:01:01,199
smarter more strategic decisions so stay

00:00:58,960 --> 00:01:03,039
focused because up next we'll explore

00:01:01,199 --> 00:01:04,479
these charting techniques in detail

00:01:03,039 --> 00:01:06,960
giving you the insights that could

00:01:04,479 --> 00:01:08,960
transform your trades from good to great

00:01:06,960 --> 00:01:11,280
before we begin this video is part of

00:01:08,960 --> 00:01:13,119
the 2025 revised edition of our free

00:01:11,280 --> 00:01:14,960
course technical analysis for day

00:01:13,119 --> 00:01:17,520
traders now enhanced with improved

00:01:14,960 --> 00:01:19,200
strategies and insights here at comlucro

00:01:17,520 --> 00:01:21,280
we also offer courses on smart money

00:01:19,200 --> 00:01:22,880
concepts and the woff method to help you

00:01:21,280 --> 00:01:25,280
grow as a trader check the video

00:01:22,880 --> 00:01:27,360
description for more information now

00:01:25,280 --> 00:01:29,280
let's get started what exactly is a

00:01:27,360 --> 00:01:31,040
chart a chart is essentially a visual

00:01:29,280 --> 00:01:33,040
representation of historical price data

00:01:31,040 --> 00:01:34,799
for a given asset as you can see here on

00:01:33,040 --> 00:01:36,960
trading view the chart displays price

00:01:34,799 --> 00:01:38,799
variations over time allowing traders to

00:01:36,960 --> 00:01:41,040
identify patterns and trends that may

00:01:38,799 --> 00:01:42,960
signal future market movements on this

00:01:41,040 --> 00:01:44,799
screen you'll notice that the chart is

00:01:42,960 --> 00:01:46,560
divided into two main axis the

00:01:44,799 --> 00:01:48,640
horizontal axis at the bottom which

00:01:46,560 --> 00:01:51,119
represents time and the vertical axis on

00:01:48,640 --> 00:01:52,720
the right which represents price these

00:01:51,119 --> 00:01:54,680
axis are fundamental to understanding

00:01:52,720 --> 00:01:57,840
how prices have evolved over specific

00:01:54,680 --> 00:02:00,159
periods now as i move my cursor along

00:01:57,840 --> 00:02:02,079
the horizontal axis you can see how the

00:02:00,159 --> 00:02:05,040
time changes reflecting different

00:02:02,079 --> 00:02:07,280
trading sessions or periods by moving up

00:02:05,040 --> 00:02:08,640
and down along the vertical axis the

00:02:07,280 --> 00:02:10,879
corresponding price levels are

00:02:08,640 --> 00:02:12,879
highlighted this setup is crucial in

00:02:10,879 --> 00:02:15,120
technical analysis because it allows us

00:02:12,879 --> 00:02:17,360
to see the big picture how prices have

00:02:15,120 --> 00:02:20,640
fluctuated over time and where potential

00:02:17,360 --> 00:02:22,720
opportunities or risks might lie next

00:02:20,640 --> 00:02:24,560
let's dive into the types of charts here

00:02:22,720 --> 00:02:26,480
on trading view you have access to a

00:02:24,560 --> 00:02:28,160
variety of chart types but we'll focus

00:02:26,480 --> 00:02:30,319
on the three most common ones used in

00:02:28,160 --> 00:02:32,879
technical analysis the line chart the

00:02:30,319 --> 00:02:35,200
bar chart and the candlestick chart

00:02:32,879 --> 00:02:36,720
first let's switch to the line chart

00:02:35,200 --> 00:02:39,120
i'll go ahead and select it from the

00:02:36,720 --> 00:02:40,959
chart type menu as you can see the line

00:02:39,120 --> 00:02:43,280
chart connects the closing prices of the

00:02:40,959 --> 00:02:45,440
asset over the selected time frame with

00:02:43,280 --> 00:02:47,360
a continuous line it's simple and easy

00:02:45,440 --> 00:02:49,040
to interpret which makes it a great tool

00:02:47,360 --> 00:02:52,080
for identifying the general direction of

00:02:49,040 --> 00:02:54,319
the market however notice how it only

00:02:52,080 --> 00:02:55,840
shows the closing prices meaning it

00:02:54,319 --> 00:02:58,000
doesn't provide detailed information

00:02:55,840 --> 00:03:00,959
about price movements within each period

00:02:58,000 --> 00:03:03,040
such as the highs lows or opening prices

00:03:00,959 --> 00:03:04,879
next i'll switch to the bar chart i'll

00:03:03,040 --> 00:03:07,040
change the chart type and now you can

00:03:04,879 --> 00:03:09,280
see a more detailed representation each

00:03:07,040 --> 00:03:11,440
bar corresponds to a specific period and

00:03:09,280 --> 00:03:13,680
shows four key pieces of information the

00:03:11,440 --> 00:03:15,599
opening price the closing price the

00:03:13,680 --> 00:03:18,080
highest price and the lowest price

00:03:15,599 --> 00:03:20,319
during that period notice how the left

00:03:18,080 --> 00:03:22,400
tick on each bar represents the opening

00:03:20,319 --> 00:03:24,400
price the right tick represents the

00:03:22,400 --> 00:03:26,400
closing price and the top and bottom of

00:03:24,400 --> 00:03:29,280
the bar indicate the highest and lowest

00:03:26,400 --> 00:03:31,120
prices respectively this type of chart

00:03:29,280 --> 00:03:32,959
is particularly useful when you need a

00:03:31,120 --> 00:03:34,959
deeper understanding of price volatility

00:03:32,959 --> 00:03:36,959
within each trading session finally

00:03:34,959 --> 00:03:38,640
let's explore the candlestick chart one

00:03:36,959 --> 00:03:41,040
of the most popular chart types among

00:03:38,640 --> 00:03:42,799
traders i'll switch to it now each

00:03:41,040 --> 00:03:44,879
candle on the chart represents the same

00:03:42,799 --> 00:03:47,200
four pieces of data as the bar chart

00:03:44,879 --> 00:03:48,720
open high low and close but the

00:03:47,200 --> 00:03:50,640
information is presented in a more

00:03:48,720 --> 00:03:52,159
visually intuitive way the body of the

00:03:50,640 --> 00:03:54,080
candle shows the difference between the

00:03:52,159 --> 00:03:55,840
opening and closing prices if the

00:03:54,080 --> 00:03:57,760
closing price is higher than the opening

00:03:55,840 --> 00:03:59,599
price the candle is usually colored

00:03:57,760 --> 00:04:01,760
green or white if the closing price is

00:03:59,599 --> 00:04:04,480
lower the candle is typically red or

00:04:01,760 --> 00:04:07,120
black the thin lines above and below the

00:04:04,480 --> 00:04:08,959
body known as wicks or shadows represent

00:04:07,120 --> 00:04:11,120
the high and low prices during that

00:04:08,959 --> 00:04:13,200
period as you watch the screen you can

00:04:11,120 --> 00:04:15,200
see how these candles form patterns

00:04:13,200 --> 00:04:17,519
which traders often use to predict

00:04:15,200 --> 00:04:19,280
future price movements for example a

00:04:17,519 --> 00:04:21,199
series of green candles might indicate

00:04:19,280 --> 00:04:23,199
an uptrend while a sequence of red

00:04:21,199 --> 00:04:25,040
candles could signal a downtrend the

00:04:23,199 --> 00:04:27,600
candlestick chart is especially powerful

00:04:25,040 --> 00:04:30,080
in helping traders spot these trends and

00:04:27,600 --> 00:04:32,080
make informed decisions based on them

00:04:30,080 --> 00:04:34,479
now moving on to the topic of time

00:04:32,080 --> 00:04:36,400
frames periods of time it's important to

00:04:34,479 --> 00:04:38,479
understand that time frames refer to the

00:04:36,400 --> 00:04:40,800
time interval that each point or bar on

00:04:38,479 --> 00:04:42,240
a chart represents in day trading

00:04:40,800 --> 00:04:44,160
selecting the right time frame is

00:04:42,240 --> 00:04:46,479
crucial as it directly impacts your

00:04:44,160 --> 00:04:48,479
analysis and decision-making process

00:04:46,479 --> 00:04:50,720
let's go through some of the most common

00:04:48,479 --> 00:04:53,120
time frames which you can easily adjust

00:04:50,720 --> 00:04:54,960
here on trading view later in the course

00:04:53,120 --> 00:04:57,040
we'll dedicate an entire chapter to

00:04:54,960 --> 00:04:59,120
market structure and how to combine

00:04:57,040 --> 00:05:01,280
different time frames to refine your

00:04:59,120 --> 00:05:03,000
entries in day trading ensuring you

00:05:01,280 --> 00:05:05,280
maximize your precision and

00:05:03,000 --> 00:05:08,479
profitability now let's start with one

00:05:05,280 --> 00:05:10,639
minute charts m1 each bar or candle here

00:05:08,479 --> 00:05:12,479
represents 1 minute of price activity

00:05:10,639 --> 00:05:14,560
this time frame is particularly ideal

00:05:12,479 --> 00:05:16,479
for scalpers and traders who are looking

00:05:14,560 --> 00:05:18,400
to capitalize on quick small price

00:05:16,479 --> 00:05:20,240
movements as you can see the chart

00:05:18,400 --> 00:05:21,840
updates rapidly offering immediate

00:05:20,240 --> 00:05:23,600
feedback on very short-term market

00:05:21,840 --> 00:05:26,080
movements which is perfect for those who

00:05:23,600 --> 00:05:29,360
prefer a highfrequency trading approach

00:05:26,080 --> 00:05:31,440
next let's look at the 5-minut charts m5

00:05:29,360 --> 00:05:33,360
i'll switch to this time frame now the

00:05:31,440 --> 00:05:35,440
5-minut chart is one of the most popular

00:05:33,360 --> 00:05:37,759
among day traders because it provides a

00:05:35,440 --> 00:05:39,520
good balance between detail and context

00:05:37,759 --> 00:05:42,160
it's highly effective for identifying

00:05:39,520 --> 00:05:44,400
short-term trends and intraday patterns

00:05:42,160 --> 00:05:46,320
as you observe the chart notice how the

00:05:44,400 --> 00:05:48,400
candles provide a more stable view of

00:05:46,320 --> 00:05:50,560
price action compared to the one minute

00:05:48,400 --> 00:05:52,320
chart reducing some of the noise while

00:05:50,560 --> 00:05:54,960
still offering timely information for

00:05:52,320 --> 00:05:58,080
making quick decisions moving on to the

00:05:54,960 --> 00:06:00,320
15-minute charts m15 i'll adjust the

00:05:58,080 --> 00:06:02,479
chart to show this now the 15-minute

00:06:00,320 --> 00:06:04,319
chart offers a broader view of price

00:06:02,479 --> 00:06:06,800
movements allowing you to spot

00:06:04,319 --> 00:06:08,880
short-term trends with less noise this

00:06:06,800 --> 00:06:10,560
time frame is particularly useful if you

00:06:08,880 --> 00:06:12,639
prefer to monitor the market over

00:06:10,560 --> 00:06:14,319
slightly longer intervals capturing

00:06:12,639 --> 00:06:16,400
significant moves without being

00:06:14,319 --> 00:06:19,120
overwhelmed by the rapid fluctuations

00:06:16,400 --> 00:06:21,840
seen in the shorter time frames next

00:06:19,120 --> 00:06:23,759
let's explore the 1-hour charts h1

00:06:21,840 --> 00:06:26,080
switching to this time frame now you can

00:06:23,759 --> 00:06:28,400
see that each bar or candle represents 1

00:06:26,080 --> 00:06:30,000
hour of trading activity this time frame

00:06:28,400 --> 00:06:31,280
is suitable for identifying more

00:06:30,000 --> 00:06:33,360
significant trends throughout the

00:06:31,280 --> 00:06:35,199
trading day it provides a clear overview

00:06:33,360 --> 00:06:36,880
of the market's direction making it

00:06:35,199 --> 00:06:38,880
useful for traders who prefer a less

00:06:36,880 --> 00:06:41,440
intensive more deliberate approach to

00:06:38,880 --> 00:06:43,520
day trading it's important to note that

00:06:41,440 --> 00:06:45,759
within a larger time frame candle like

00:06:43,520 --> 00:06:48,160
the 1-hour candle there can be various

00:06:45,759 --> 00:06:50,400
movements that occur yet the final price

00:06:48,160 --> 00:06:52,560
outcome might be the same this is why

00:06:50,400 --> 00:06:54,400
we'll dive deeper into candles and the

00:06:52,560 --> 00:06:56,080
psychology behind their formation later

00:06:54,400 --> 00:06:57,840
in the course as this knowledge

00:06:56,080 --> 00:07:00,720
significantly impacts a trader's

00:06:57,840 --> 00:07:03,520
performance during operations now let's

00:07:00,720 --> 00:07:05,280
look at the daily charts d1 each bar

00:07:03,520 --> 00:07:07,520
here represents a full day's worth of

00:07:05,280 --> 00:07:09,599
price action although daily charts are

00:07:07,520 --> 00:07:11,199
less commonly used by day traders they

00:07:09,599 --> 00:07:13,039
can still be valuable for understanding

00:07:11,199 --> 00:07:15,440
the broader market trend before making

00:07:13,039 --> 00:07:17,599
intraday decisions this time frame helps

00:07:15,440 --> 00:07:20,080
to set the context giving you a clearer

00:07:17,599 --> 00:07:21,599
picture of the overall market sentiment

00:07:20,080 --> 00:07:23,680
in addition to the time frames we've

00:07:21,599 --> 00:07:26,319
discussed there's also the weekly chart

00:07:23,680 --> 00:07:28,720
w1 which i'll switch to now on a weekly

00:07:26,319 --> 00:07:30,880
chart each bar or candle represents one

00:07:28,720 --> 00:07:32,479
full week of trading activity this time

00:07:30,880 --> 00:07:34,400
frame is especially useful for

00:07:32,479 --> 00:07:36,400
understanding long-term trends and

00:07:34,400 --> 00:07:38,639
market sentiment as it smooths out the

00:07:36,400 --> 00:07:40,560
day-to-day fluctuations and provides a

00:07:38,639 --> 00:07:42,960
clearer view of the overall direction

00:07:40,560 --> 00:07:45,840
the market has been taking over weeks or

00:07:42,960 --> 00:07:47,680
even months as you can see on the screen

00:07:45,840 --> 00:07:49,599
the weekly chart consolidates all the

00:07:47,680 --> 00:07:51,680
price movements within a week into a

00:07:49,599 --> 00:07:53,759
single candle this can be particularly

00:07:51,680 --> 00:07:55,599
valuable when you want to identify major

00:07:53,759 --> 00:07:57,319
support and resistance levels that are

00:07:55,599 --> 00:08:00,080
likely to be respected over longer

00:07:57,319 --> 00:08:01,840
periods for day traders while the weekly

00:08:00,080 --> 00:08:03,919
chart might not be used for making daily

00:08:01,840 --> 00:08:05,840
trading decisions it's an excellent tool

00:08:03,919 --> 00:08:07,599
for setting a broader context by

00:08:05,840 --> 00:08:09,120
analyzing the weekly trends you can

00:08:07,599 --> 00:08:11,199
align your day trading strategies with

00:08:09,120 --> 00:08:12,720
the longerterm market direction ensuring

00:08:11,199 --> 00:08:15,599
that your trades are not going against

00:08:12,720 --> 00:08:17,919
the prevailing trend for example if the

00:08:15,599 --> 00:08:19,919
weekly chart shows a strong upward trend

00:08:17,919 --> 00:08:22,000
you might prefer to focus on long trades

00:08:19,919 --> 00:08:23,680
in your day trading sessions as this

00:08:22,000 --> 00:08:26,319
would align with the overall market

00:08:23,680 --> 00:08:28,400
momentum conversely if the weekly trend

00:08:26,319 --> 00:08:30,960
is downward short trades might be more

00:08:28,400 --> 00:08:33,039
favorable in summary the weekly chart

00:08:30,960 --> 00:08:34,880
serves as a highle road map that can

00:08:33,039 --> 00:08:36,399
help guide your day trading decisions

00:08:34,880 --> 00:08:38,800
ensuring they are in harmony with the

00:08:36,399 --> 00:08:40,399
larger market trends the relevance of

00:08:38,800 --> 00:08:42,320
these time frames in day trading is

00:08:40,399 --> 00:08:44,480
closely tied to the individual trader

00:08:42,320 --> 00:08:47,040
style and the nature of the market being

00:08:44,480 --> 00:08:49,440
traded shorter time frames such as the 1

00:08:47,040 --> 00:08:51,279
minute or 5-minut charts are ideal for

00:08:49,440 --> 00:08:53,440
traders who are looking to capitalize on

00:08:51,279 --> 00:08:55,440
quick short-term opportunities these

00:08:53,440 --> 00:08:57,519
traders thrive on the fast-paced nature

00:08:55,440 --> 00:08:59,760
of the market and prefer to make rapid

00:08:57,519 --> 00:09:02,320
decisions based on minutetominute price

00:08:59,760 --> 00:09:04,560
movements on the other hand slightly

00:09:02,320 --> 00:09:06,560
longer time frames like the 15-minute or

00:09:04,560 --> 00:09:08,080
1 hour charts are better suited for

00:09:06,560 --> 00:09:10,160
those who prefer a more measured

00:09:08,080 --> 00:09:11,920
approach these traders might want to

00:09:10,160 --> 00:09:13,920
observe and confirm clearer trends

00:09:11,920 --> 00:09:16,080
before entering a position allowing for

00:09:13,920 --> 00:09:18,000
a more patient and strategic analysis of

00:09:16,080 --> 00:09:20,480
the market the key is to choose a time

00:09:18,000 --> 00:09:22,480
frame that balances your need for detail

00:09:20,480 --> 00:09:24,399
with your need for a broader context

00:09:22,480 --> 00:09:26,560
ensuring that your trading decisions are

00:09:24,399 --> 00:09:29,440
informed by a comprehensive and precise

00:09:26,560 --> 00:09:31,120
market analysis in conclusion choosing

00:09:29,440 --> 00:09:33,120
the right time frame is essential for

00:09:31,120 --> 00:09:34,480
navigating the market with precision it

00:09:33,120 --> 00:09:36,240
helps you align your trades with the

00:09:34,480 --> 00:09:38,080
prevailing trends increasing your

00:09:36,240 --> 00:09:40,320
chances of making well-informed and

00:09:38,080 --> 00:09:42,320
profitable decisions that wraps up our

00:09:40,320 --> 00:09:44,399
chapter on the basic concepts of trading

00:09:42,320 --> 00:09:46,640
charts but this is just the beginning

00:09:44,399 --> 00:09:49,120
our course technical analysis for day

00:09:46,640 --> 00:09:51,279
traders from basics to advanced covers

00:09:49,120 --> 00:09:52,959
many more crucial aspects of day trading

00:09:51,279 --> 00:09:54,560
be sure to check out the other videos in

00:09:52,959 --> 00:09:57,200
the series to deepen your understanding

00:09:54,560 --> 00:09:59,120
and refine your strategies and here's

00:09:57,200 --> 00:10:01,680
something important this video is part

00:09:59,120 --> 00:10:03,760
of the 2025 revised and updated edition

00:10:01,680 --> 00:10:05,839
of our free course technical analysis

00:10:03,760 --> 00:10:07,680
for day traders this course has been on

00:10:05,839 --> 00:10:09,680
our channel for a while and now we've

00:10:07,680 --> 00:10:11,200
enhanced and improved the content to

00:10:09,680 --> 00:10:13,440
ensure you get the most effective

00:10:11,200 --> 00:10:16,480
strategies and insights for navigating

00:10:13,440 --> 00:10:18,959
the financial markets beyond this course

00:10:16,480 --> 00:10:21,360
here on kumlucro we also offer a

00:10:18,959 --> 00:10:23,200
complete course on smart money concepts

00:10:21,360 --> 00:10:25,920
and another dedicated to the wackoff

00:10:23,200 --> 00:10:28,160
method our goal is to provide in-depth

00:10:25,920 --> 00:10:30,399
up-to-date content to help you grow as a

00:10:28,160 --> 00:10:32,480
trader and as always remember to keep

00:10:30,399 --> 00:10:35,360
our top recommendations in mind and best

00:10:32,480 --> 00:10:37,519
of luck in your trades i hope you

00:10:35,360 --> 00:10:39,920
enjoyed today's video if you found the

00:10:37,519 --> 00:10:42,240
content useful or fun please give it a

00:10:39,920 --> 00:10:44,480
like as this helps the video reach more

00:10:42,240 --> 00:10:45,920
traders like you remember to subscribe

00:10:44,480 --> 00:10:47,839
to the channel and activate

00:10:45,920 --> 00:10:49,920
notifications to stay updated with the

00:10:47,839 --> 00:10:52,240
latest financial market information and

00:10:49,920 --> 00:10:54,399
trading tips sharing this video with

00:10:52,240 --> 00:10:56,320
your friends or on your social networks

00:10:54,399 --> 00:10:58,640
can make a big difference and helps our

00:10:56,320 --> 00:11:00,320
community become stronger your support

00:10:58,640 --> 00:11:02,560
allows us to continue bringing

00:11:00,320 --> 00:11:04,800
highquality content helping you make

00:11:02,560 --> 00:11:06,800
more informed decisions in the markets

00:11:04,800 --> 00:11:08,480
thank you for watching and good luck on

00:11:06,800 --> 00:11:10,640
achieving excellent results in your

00:11:08,480 --> 00:11:10,640
trades