Learn · Chapter 01 of 09
Technical charts
Everything in technical analysis starts with reading a price chart correctly: what each candle means, why timeframe changes the story, and how volume confirms or contradicts a move. This chapter builds that foundation before any pattern or indicator.
Start here · 4 lessons · 12 min read
Key takeaways
- Candles show psychology per period: body = conviction, wick = rejection.
- Always read two timeframes — bias from the higher, entry from the lower.
- No volume confirmation, no trade conviction.
Lesson 1
Line vs bar vs candlestick
- Line charts hide intraday noise — good for trend, bad for entries.
- Each candle shows open, high, low, close for one period; wicks reveal rejection.
- On NSE delivery charts, always check whether you are on daily, weekly or 15-minute — same stock, different story.
Lesson 2
Timeframes and NSE sessions
- Higher timeframe sets bias (daily/weekly); lower timeframe times entries (15-min/hourly).
- Intraday charts reset every 9:15–15:30 session — gaps and opening range matter.
- Weekly closes filter out daily noise for swing positions held 2–8 weeks.
Lesson 3
Volume: the honesty check
- Rising price on rising volume = participation; rising price on falling volume = suspicion.
- Delivery percentage (NSE) matters more than intraday volume for swing trades.
- Volume spikes at support/resistance mark institutional interest — watch the next 2–3 candles.
Lesson 4
Log vs linear scale
- Use log scale for moves over 20%+ so early gains don't look flat.
- Linear scale is fine for intraday and short swings under a few percent.
Mistakes that cost money
- Switching timeframes mid-trade to justify holding a loser.
- Reading an intraday chart without noting the opening-range high/low.
- Ignoring delivery % and chasing a low-volume circuit move.
Chapter FAQ
Which chart type should beginners use?
Candlesticks on daily + weekly. They show the most information per glance and every pattern and indicator chapter below assumes candles.
Which timeframe for swing trading in India?
Daily for setups, weekly for trend bias, 60-minute for entries. Intraday-only charts (5/15-min) without daily context cause most beginner whipsaws.
Does volume data differ between NSE and BSE?
Yes — analyse volume on the exchange you trade (usually NSE, which dominates liquidity). Delivery % is published per exchange per day.
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