How to Read Forex Charts Like a Pro

Professional traders use these verified chart reading methods from the CMT Association’s technical analysis standards.

Essential Chart Components

1. Timeframes:
   • 1H-4H for day trading
   • Daily for swing trading
2. Candlestick Patterns:
   • Engulfing: 63% reliability (Nison, 2001)
   • Doji: Works best at support/resistance

Verified Support/Resistance Rules

• Price touches levels 3+ times for stronger zones
• Weekly highs/lows act as major levels
• Fibonacci 38.2% and 61.8% most effective

Professional Chart Setup

1. Daily chart - Identify trend
2. 4H chart - Find key levels
3. 1H chart - Time entries