Charts – like pictures – are visuals that help tell a story. For traders, that “chart story” can be very revealing.
What can you tell about this picture?
Pictures help to tell stories.
Most of us can look at a picture and figure some things out. The picture above is of people you probably don’t know, but there are things in it – if you look closely – that tell a story. Feel free to put your observations in the comments. I will elaborate on the picture later in the day and tell a very special story (and ask you all to do something for me and yourself in the process).
Snapchat, the social media app, was designed to tell stories through pictures. Instagram does the same thing.
And charts do the exact same thing.
You might have noticed, I posted a “Snapchart” of the USDJPY earlier. It was just a picture, but that picture tells a story about the price action in the pair today, and what may happen in the future because of the picture (you can see the future….).
I did a video back in March 2017, shortly after Snapchat went public, and paralleled the social media to charts and trading.
To help celebrate ForexLives 10th birthday, this is that video that you should all take some time and watch. It should change/shape your mindset on what you see in a chart, and how to use them more effectively in your trading. HINT: A person in the picture above, appears in the video too.