The ChartRead Blog

Chart patterns, candlesticks, indicators, and a free day-trading course. Plain English, written for traders.

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New to charts? Begin with these.

Chart Patterns

The setups that repeat across every market.

How to Trade the Bull Flag Pattern
The bull flag is one of the cleanest continuation setups in trading. Learn how to identify it, what volume should look like, and where to set your entry, stop, and target.
Bear Flag Pattern: Trading the Continuation of a Downtrend
The bear flag is the bearish counterpart to the bull flag, a tight consolidation after a sharp drop, followed by continuation lower. Learn how to identify it and trade it.
How to Trade the Pennant Pattern
The pennant pattern is a fast continuation setup after a sharp move. Learn pennant vs flag, the pole, the breakout, the measured move target, and what volume should do.
Cup and Handle Pattern: A Trader's Guide
The cup and handle is one of the most reliable breakout setups in trading. Learn how the pattern forms, what volume should look like, and how to set your entry, stop, and target.
Head and Shoulders Pattern: The Reversal Setup Every Trader Should Know
The head and shoulders is one of the most reliable reversal patterns in technical analysis. Learn how to spot it, what the volume should look like, and where to set your entry and stop.
The Inverse Head and Shoulders Pattern
The inverse head and shoulders pattern signals a bottom turning into an uptrend. Learn to spot the three troughs, the neckline, and where to enter and stop.
Double Top and Double Bottom: Reliable Reversal Patterns for Any Market
Two peaks or two troughs at the same level. Simple to spot and consistent to trade. Here's how the double top and double bottom patterns work and how to set up the trade.
Ascending, Descending, and Symmetrical Triangle Patterns
Triangles form when price gets squeezed between two converging trendlines. The breakout that follows is usually sharp. Learn how to identify each type and trade the move.
Wedge Patterns: Rising, Falling, and When to Trade Them
Rising and falling wedges are powerful reversal signals. Learn the difference between wedges and flags, how to draw them correctly, and where to trade the breakout.
Breakout Trading: How to Catch the Move Before It Happens
Breakout trading is about positioning ahead of explosive moves. Learn how to identify high-probability breakouts, avoid fakeouts, and manage the trade once price moves.
Gap Trading: How to Read and Trade Opening Gaps
Gaps reveal what happened overnight and set the tone for the trading day. Learn the four types of gaps, when to trade them, and when to let them fill before entering.
Where to Enter on a Head and Shoulders Neckline Retest
The head and shoulders neckline retest is the cleanest entry the pattern offers. Here is the exact zone to enter, where to put the stop, and how to confirm.
Cup and Handle: When the Handle Is Too Deep and Invalid
A cup and handle with a handle too deep is a broken pattern. Learn the exact retracement limit that invalidates the setup and what to do mid-trade.
Inverse Head and Shoulders on a Bitcoin Chart: How to Trade It
How to spot and trade an inverse head and shoulders on a Bitcoin chart: neckline entry, exact stop placement, measured target, and the crypto-specific fakeout traps.
Ascending Triangle Broke Down Instead of Up: What It Means
Your ascending triangle broke down instead of up. Here is why it happened, what a downside break actually signals, and exactly what to do if you are still in.

Candlestick Patterns

Reading the story in a single candle.

Doji Candlestick Pattern: What It Means
The doji candlestick pattern signals indecision between buyers and sellers. Learn the four main types, what each one signals, and how to trade a doji with volume.
Engulfing Candlestick Pattern: Bullish vs Bearish
The engulfing candlestick pattern is a strong reversal signal. Learn bullish vs bearish engulfing, what confirms them, and exact entry, stop, and target rules.
Hammer Candlestick Pattern: How to Trade It
The hammer candlestick pattern signals a potential bottom. Learn how it differs from the hanging man and inverted hammer, and how to confirm and trade it.
Shooting Star Candlestick: How to Trade It
The shooting star candlestick is a bearish reversal signal at the top of an uptrend. Learn how it forms, how it differs from a gravestone doji, and how to trade it.
The Morning Star Pattern: A Trader's Guide
The morning star is a three-candle reversal that signals a bottom. Learn how to read it, how it differs from the evening star, and when the signal is real.
The Harami Candlestick Pattern
The harami candlestick pattern is a two-bar reversal where a small candle sits inside a large one. Learn to read bullish and bearish haramis and trade them.
Three White Soldiers Pattern (and Three Black Crows)
The three white soldiers pattern is a strong bullish reversal of three rising candles. Learn how to read it, its bearish twin, and how to trade both.
Bullish Engulfing Win Rate: Real Backtest Data by Asset and Timeframe
Real backtest data on the bullish engulfing win rate by asset and timeframe. Why the raw pattern is near a coin flip and what filters turn it into an edge.
Shooting Star vs Inverted Hammer: How to Tell Them Apart
Shooting star vs inverted hammer: same candle shape, opposite meaning. Learn the one thing that tells them apart and exactly how to trade each one.

Indicators

The tools that confirm what price is doing.

RSI Explained: How to Use the Relative Strength Index Without Getting It Wrong
RSI is everywhere but most traders misuse it. Here's what it actually measures, why the 50 line matters more than 70 and 30, and how to use divergence to catch real turning points.
MACD Explained: How to Actually Use It (Not Just Look at It)
MACD is one of the most popular indicators in trading. Here's what the three components actually measure, when the signals are reliable, and where most traders go wrong with it.
Moving Averages Explained: SMA vs EMA and How to Use Them
Moving averages are the most fundamental indicator in trading. Here's the difference between SMA and EMA, which key levels to watch, and how to use moving averages to identify trend direction and find entries.
Bollinger Bands Explained: A Trader's Guide
Bollinger Bands measure volatility around a moving average. Learn how the squeeze, riding the band, and mean reversion work, plus the right settings to use.
What Is VWAP? A Trader's Guide
VWAP is the volume weighted average price and a key intraday level. Learn how it works, why day traders and institutions use it, and how to trade the bounce.
Anchored VWAP: How to Use It in Your Trading
Anchored VWAP ties the volume-weighted average price to a chosen event. Learn how to anchor it, read it as support or resistance, and avoid common errors.
The Stochastic Oscillator Explained: A Trader's Guide
The stochastic oscillator measures momentum with %K and %D lines. Learn how to read overbought and oversold, crossovers, and divergence the right way.
Average True Range (ATR): How to Use It
The average true range ATR measures volatility, not direction. Learn how to read ATR, size positions with it, and set stops that survive normal noise.
ADX Indicator: Measuring Trend Strength
The ADX indicator tells you how strong a trend is, not its direction. Learn to read ADX with +DI and -DI, the 25 threshold, and avoid range-bound traps.
Ichimoku Cloud Explained: A Trader's Guide
Ichimoku cloud explained in plain English. Learn the five lines, how to read the cloud for trend and support, and the signals that actually matter.
On Balance Volume (OBV): Reading the Flow
On balance volume OBV tracks whether volume is flowing into or out of a stock. Learn to read OBV trend, confirmation, and divergence the right way.
Fibonacci Retracements: How to Use Them in Trading
Fibonacci retracements are one of the most widely-used tools in technical analysis. Learn which levels actually matter, how to draw them correctly, and where to place your entries and stops.
Golden Cross and Death Cross Explained
The golden cross and death cross are the most watched moving average signals. Learn what the 50/200 MA crossover signals, why it lags, and how to avoid false signals.
9 EMA and 20 EMA Crossover Strategy: Exact Entry and Exit Rules
The 9 EMA and 20 EMA crossover strategy with exact entry, stop, and exit rules. Learn the trigger candle, where to set your stop, and how to filter fakeouts.
Best EMA Settings for the 5-Minute Chart (Day Trading)
The best EMA settings for the 5 minute chart for day trading: 9/20, 8/21, and the 5-8-13 ribbon, plus exact entry triggers and where to put your stop.
Bollinger Band Squeeze Settings to Catch a Breakout Early
The exact Bollinger Band squeeze settings to catch a breakout early: BandWidth thresholds, the 20,2 baseline, Keltner combo, and where to enter before the move.

Strategy & Risk

Staying in the game and trading with a plan.

Position Size Calculator: How to Never Risk Too Much on a Trade
Learn how to use a position size calculator to find exactly how many shares to buy based on your account, risk tolerance, entry, and stop loss. Step-by-step with real examples.
Stop Loss Strategy: How to Set Stops That Actually Protect You
Most traders set stops in the worst possible places. Learn how to set stop losses based on chart structure, not fear, and avoid getting hunted out of good trades.
Risk Reward Ratio in Trading: The Number That Matters
Your risk reward ratio in trading decides whether you can lose more than half your trades and still make money. Here's how to calculate and use it correctly.
Day Trading vs Swing Trading: Which One Fits You
Day trading vs swing trading comes down to time, capital, and temperament. Here's how the two styles really differ and how to pick the one that fits your life.
The Best Indicators for Day Trading (and How to Use Them)
The best indicators for day trading are the few you actually understand. Here are five that earn their spot on an intraday chart and how to combine them.
How to Trade Around Earnings: What Actually Works
Earnings reports move stocks. But trading them is harder than it looks. Here's why options buyers get crushed by IV crush, what post-earnings drift is, and how to approach earnings without taking unnecessary binary risk.
Short Selling Explained: How It Works and the Risks
Short selling explained for beginners. Learn how shorting a stock works, how you profit when prices fall, the unique risks involved, and the mistakes to avoid.
The RSI-2 Strategy: Settings and Rules for Mean Reversion
The RSI 2 strategy from Larry Connors with exact settings: 2-period RSI, the 200-day trend filter, oversold thresholds, scale-ins, and the 5-day exit rule.
How Far Below the Low to Set Your Stop on a Breakout
How far below the low to set a stop loss on a breakout: exact buffer math using ATR, recent wicks, and round numbers so you avoid getting shaken out.
How to Stop Getting Shaken Out Right Before It Runs
Keep getting stopped out then watching it run to your target? Fix stop placement, sizing, and wicks so normal noise stops shaking you out of good trades.
How to Size a Position When Your Stop Is Really Tight
Position size with a tight stop loss breaks the standard formula. Learn the exposure cap, slippage padding, and the smaller-of-two rule that keeps you safe.
When to Move Your Stop to Breakeven After Entry
Moving your stop to breakeven too early gets you shaken out of winners. Learn the exact 1R and structure triggers for when to do it, and when to skip it.

Market Structure & Volume

How smart money moves price.

Support and Resistance: The Foundation of Every Trade
Support and resistance are the two most important concepts in technical analysis. Learn how to identify them, why they flip, and how to actually trade them.
How to Draw Trend Lines That Actually Work
Learn how to draw trend lines the right way: which points to connect, why two touches is a guess, and how to use trend line breaks for entries and exits.
How to Use Volume in Technical Analysis
Price gets all the attention, but volume is what gives price moves meaning. Learn how to use volume to confirm trends, spot distribution, identify high-conviction breakouts, and catch divergence before it's obvious.
RSI and MACD Divergence Trading Explained
RSI and MACD divergence can warn you before a trend turns. Learn regular vs hidden divergence, bullish and bearish setups, how to confirm them, and common pitfalls.
Smart Money Concepts (SMC) Explained for Retail Traders
Smart Money Concepts, order blocks, fair value gaps, liquidity sweeps, explained without the hype. Learn what SMC actually describes and how to apply it to your trading.
Order Blocks Trading: How to Spot and Use Them
Order blocks trading explained in plain terms. Learn how to find institutional order blocks, why price returns to them, and how to set entries, stops, and targets.
Fair Value Gap: What It Is and How to Trade It
A fair value gap is a price imbalance left by a fast move. Learn how to spot a fair value gap, why price fills it, and how to use it for entries and targets.
Supply and Demand Trading Explained
Supply and demand trading is about finding zones where big orders move price. Learn to identify zones, fresh vs tested, entries, and how they differ from support and resistance.
The Wyckoff Method: Reading Accumulation and Distribution
Richard Wyckoff mapped how large operators accumulate and distribute positions over 100 years ago. The method still works today. Learn the four phases and how to trade them.
Why Your Crypto Breakouts Keep Failing and Reversing
Crypto breakouts failing the moment you enter? Here are the real reasons crypto breakouts fail and reverse, from stop-hunt wicks to thin weekend volume, plus fixes.

Congress & Politician Trading

What members of Congress are buying, and how disclosure works.

How Politicians Trade Stocks: The STOCK Act and What the Data Shows
Congress members are required to publicly disclose their stock trades. Here's how the STOCK Act works, where to find the data, and how to use congressional trading disclosures as one signal among many.
How Congress Has to Report Stock Trades
Members of Congress must disclose their stock trades by law. Here is exactly how it works: the STOCK Act, the 45-day rule, the $1,000 threshold, and where the filings actually live.
What Is a Periodic Transaction Report (PTR)?
A PTR is the filing a member of Congress submits for each stock trade. Here is how to read one: the asset codes, transaction types, amount ranges, and what the owner column means.
How to See What Stocks Politicians Are Buying (Free)
Learn exactly where to find congressional stock trades for free, using official sources, free aggregators, and tools that add a one-tap chart read to each filing.
How to Track Nancy Pelosi's Stock Trades
Learn how to track Nancy Pelosi's stock trades using House Clerk PTRs, free aggregators, and tools like ChartRead. Understand the 45-day lag and what to look for.
Stocks Congress Bought Right Before Government Contracts Were Awarded
How to check whether a member of Congress bought a stock before a government contract was awarded, using public STOCK Act disclosures, contract dates, and committee links.
Do Armed Services Committee Members Trade Defense Stocks?
Yes, Armed Services Committee members trade defense stocks. See which lawmakers buy Lockheed, RTX, and Boeing, why it is legal, and how to track every filing.
Will Congress Ban Stock Trading? Where It Stands
Congress has debated banning stock trading for members for years. Here is where the major bills stand, why they keep stalling, and what rules exist today.
Is It Legal for Congress to Trade Stocks?
Members of Congress can legally own and trade individual stocks. Here is what the STOCK Act requires, what the gray areas are, and where reform efforts stand.
Senate vs House Stock Disclosure: What Is Different
Both chambers follow the STOCK Act, but House and Senate filings land on different portals with different formats. Here is how each system works and where to find the data.
How Late Can Congress Disclose a Stock Trade?
Under the STOCK Act, members of Congress can wait up to 45 days to disclose a trade. Learn what the law actually says and what that lag means for investors.
Do Politicians Beat the Market?
Congressional stock trading gets plenty of headlines, but do politicians actually beat the market? The evidence is more mixed than viral posts suggest.
The Stocks Congress Owns the Most
Congress members concentrate their portfolios in mega-cap tech and blue chips. See which stocks dominate their disclosures and why that matters to investors.
How Often Does Congress Trade Stocks?
Congress discloses thousands of stock trades each year under the STOCK Act, but trading is concentrated in a small group of prolific members. Here is what the data shows.
Can You Make Money Following Congress Trades?
Congress members trade stocks, and some appear to do well. Here's a realistic look at the edge, the lag problem, and how to use these trades as a signal.
The Best Congress Stock Trackers, Compared
Compare the top tools for tracking congressional stock trades, from official STOCK Act filings to free and paid trackers. Find the right fit for your research.
Free Unusual Whales Alternatives for Congress and Insider Data
Need congressional and insider trade data without paying for Unusual Whales? These free tools cover STOCK Act filings, SEC Form 4s, and more.
How to Track Smart Money in the Stock Market
Learn the four public disclosures that reveal insider, congressional, hedge fund, and activist moves, and how to combine them with chart analysis.

Insider Trading & SEC Filings

Executives, directors, and the forms that reveal their moves.

What Insider Buying Actually Means for a Stock
Not all insider buys are bullish. Learn the difference between open-market purchases, stock grants, and 10b5-1 plans, and which signals actually matter.
How Insider Stock Trades Are Disclosed
Corporate insiders must report their trades to the SEC. Here is how it works: who counts as an insider, Section 16, Forms 3, 4, and 5, the two-day rule, and where to find the filings.
SEC Form 4 Explained: Reading an Insider Buy or Sell
A line-by-line guide to reading an SEC Form 4: the transaction codes P, S, A, M, and G, what 10b5-1 plans mean, cluster buys, and how to spot a meaningful insider buy.
SEC Form 4 Transaction Codes: A Cheat Sheet
One-letter codes on SEC Form 4 filings tell you exactly what an insider did. Here's what each code means and which ones actually signal conviction.
How to Find Insider Buying Before It Moves a Stock
Learn how to find insider buying on SEC Form 4 before it moves a stock. Filter for open-market purchases, cluster buys, and the right insiders to watch.
What It Means When a CEO Buys Their Own Stock
When a CEO buys company shares with personal cash on the open market, it signals real conviction. Learn what Form 4 code P means and when to pay attention.
Insider Cluster Buying: The Strongest Insider Signal
When several insiders buy the same stock within weeks, it sends a far stronger signal than a single trade. Learn how to spot cluster buying and act on it.
Why Do Insiders Sell Stock? And When to Worry
Insiders sell stock for many innocent reasons. Learn when a sale is a red flag, what patterns signal real risk, and why buying is the cleaner signal.
Real Insider Buying vs Option Exercise: How to Tell the Difference
Insider buying vs option exercise looks identical in headlines but not on the Form 4. Use the transaction code to tell a real buy from compensation in seconds.
What Is a 10b5-1 Plan? Insider Selling Explained
A 10b5-1 plan lets corporate insiders schedule stock trades in advance. Learn how it works, what the SEC's 2023 reforms changed, and what trades actually matter.
Form 4 vs Schedule 13D vs 13G: The Difference
Form 4, Schedule 13D, and Schedule 13G each signal something different about who owns a stock and why. Learn what each filing means for traders.
How to Read SEC EDGAR Insider Filings
Learn how to find and read SEC EDGAR insider filings (Form 4) for free, decode transaction codes, and spot real open-market buys from stock compensation.
What Is a 13F Filing? How to See What Hedge Funds Own
A 13F is a quarterly SEC filing that shows what hedge funds and big institutions own in U.S. equities. Learn what it reveals and where it falls short.
Options Flow: How to Read Unusual Options Activity
Unusual options activity, large call sweeps, dark pool prints, big put buying, can signal what informed traders are expecting. Learn how to read options flow and use it in your trading.

Options Trading

Calls, puts, the Greeks, and the strategies built on them.

Call Options Explained for Beginners
Learn what a call option is, how the strike price, premium, and expiration work together, and what your real max loss and breakeven are before you trade.
Put Options Explained for Beginners
Learn how put options work: the right to sell 100 shares at a set price, what you risk, your breakeven, and how time decay affects your trade.
Options Greeks Explained: Delta, Gamma, Theta, Vega
Learn what Delta, Gamma, Theta, Vega, and Rho actually measure, with plain-English definitions and practical notes for options buyers and sellers.
Implied Volatility Explained
Implied volatility is the market's forecast of future price swings, baked into every option price. Learn IV crush, IV rank, and when to buy or sell.
Options vs Stocks: Which Should You Trade?
Stocks vs options: a clear, honest comparison of complexity, risk, and reward to help you decide which fits your skill level and goals.
The Covered Call Strategy, Explained
Learn how covered calls work: sell a call on shares you own, collect premium, and manage upside caps and downside risk the right way.
The Wheel Strategy for Options Income
Learn how the wheel strategy works: sell cash-secured puts, get assigned, sell covered calls, repeat. Steady premium income with real risks explained clearly.
Iron Condor: How the Strategy Works
Learn how the iron condor works, its four legs, max profit, max loss, and when to use this defined-risk neutral options strategy.
What Are LEAPS Options?
LEAPS are long-dated options with expirations over a year away. Learn how traders use them as stock substitutes, for hedging, and to control time decay.
What Are 0DTE Options? And the Risks
0DTE options expire the same day you buy them. Learn how they work on SPX, SPY, and QQQ, and the serious risks traders face with gamma and theta.

Crypto Trading

Cycles, halvings, dominance, and what moves digital assets.

Funded & Prop Trading

Passing the challenge and trading someone else's capital.

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