–

How to read this chart

• The candle

  Each candle sums up a slice of time. On this chart, each candle is one day.

  Green: the buyers won the fight that day. Red: the sellers won.

  Learn it in the Playbook: Level 2 · ch. 2, The candle

• The trend

  It's the first question for any chart: is there a trend or not?

  Going up: uptrend. Going down: downtrend. Neither one: sideways.

  Learn it in the Playbook: Level 2 · ch. 5, Trend and the 20 EMA

• The EMA

  Ligue em Indicadores, na barra do gráfico

  It's the smooth line over the candles. It shows the average price of the last candles.

  If the price holds above it, it's probably in an uptrend. Below it, probably a downtrend.

  Here it uses TradingView's default setting. The book uses the 20 EMA, and chapter 8 shows how to set it up.

  Learn it in the Playbook: Level 2 · ch. 5, Trend and the 20 EMA

• The RSI

  Ligue em Indicadores, na barra do gráfico

  It's the strip below the candles. A thermometer of the market's mood, from 0 to 100.

  Below 30: everyone's scared. Above 70: everyone's excited.

  The RSI doesn't say "buy". It says "look".

  Learn it in the Playbook: Level 2 · ch. 7, RSI: fear and euphoria

• Divergence

  Ligue em Indicadores, na barra do gráfico

  It's when the price and the RSI disagree. The indicator turned on here looks for that in the RSI strip.

  Divergence is a warning, not a trigger.

  Learn it in the Playbook: Level 3 · ch. 13, Advanced RSI: divergence