Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

The Ultimate Handbook on How to Read Trading Charts

Understanding how to read trading charts is fundamental for any trader aiming to navigate financial markets confidently. Trading charts visually represent price movements over time, allowing traders to analyze past performance and predict future trends. This guide will explain the basics of trading charts, different types, how volume influences analysis, and practical steps to interpret them effectively.

What Are Trading Charts?

Trading charts are graphical tools that display price data of financial assets such as stocks, forex, precious metals, or indices. These charts plot price on the vertical axis against time on the horizontal axis. By visualizing price fluctuations, traders can identify patterns, trends, and key support or resistance levels essential for making informed trading decisions. Learning how to read the trading chart allows traders to decode market sentiment and price behavior, which is crucial for timing entry and exit points.

Types of Trading Charts

There are several types of trading charts, each offering unique insights:

• Line Chart: The simplest form, connecting closing prices over a period. It’s useful for spotting overall trends but lacks detailed price information.
• Bar Chart: Displays open, high, low, and close (OHLC) prices for each time interval, providing more data about price volatility.
• Candlestick Chart: The most popular chart type among traders, showing OHLC with “candlesticks” that visually depict bullish or bearish price movements. Candlesticks are highly informative for recognizing market momentum and reversals.

Understanding how to read trading charts begins with recognizing which chart type suits your trading style and objectives.

Discover the 18 candlestick patterns you should know and learn. 

Price Axis vs. Time Axis

Every trading chart consists of two axes:

• Price Axis (Vertical): Displays the price levels of the asset. Reading this axis tells you at what price the asset traded during the selected timeframe.
• Time Axis (Horizontal): Represents the passage of time, ranging from minutes to years depending on the chart’s timeframe.

Grasping the interaction between the price and time axes is essential in understanding market dynamics and accurately interpreting chart movements.

Volume and Its Role in Chart Analysis

Volume represents the number of shares or contracts traded during a specific time frame. It’s a critical component in chart analysis because it confirms the strength behind price movements.

High volume during an uptrend suggests strong buying interest, reinforcing the trend’s validity.

Low volume in a price move may signal a weak or unsustainable trend, often preceding reversals.

Incorporating volume analysis into how to read the trading chart enhances decision-making by showing whether price moves are supported by active market participation.

How to Identify Trends?

Identifying trends is key to successful trading. Trends indicate the general direction of price movement and can be classified as:

• Uptrend: A series of higher highs and higher lows indicates bullish market sentiment.
• Downtrend: A series of lower highs and lower lows showing bearish momentum.
• Sideways/Range-bound: Price moves within a horizontal channel, indicating indecision.

When learning how to read trading charts, spotting these trends early helps traders position themselves advantageously in the market.

New to trading? Learn how to start trading for beginners.

How to Read Trading Charts?

To effectively read trading charts, follow these steps:

Step 1: Choose the Right Chart Type

Candlestick charts are widely used because they display open, high, low, and close prices clearly, helping traders spot buying or selling pressure. Line charts are simpler, connecting closing prices to show general trends. Selecting the right chart type depends on your trading style and what detail you need.

Step 2: Set the Appropriate Timeframe

Your trading timeframe influences what you see on the chart. Day traders typically use short timeframes like 1 to 15 minutes to capture quick moves, while swing traders prefer hourly or daily charts to focus on medium-term trends. Long-term investors often analyze weekly or monthly charts. Choosing the right timeframe helps match the chart’s signals with your trading strategy.

Step 3: Analyze Price Patterns

Recognizing patterns such as head and shoulders, double tops, or triangles can indicate potential market direction changes. These formations give clues about whether a trend will continue or reverse, helping traders make informed decisions.

Step 4: Evaluate Volume

Volume shows how many units of an asset have been traded. High volume during a price move confirms strong market interest and the likelihood of a sustained trend. Low volume, however, suggests weak momentum and possible reversals.

Step 5: Identify Support and Resistance Levels

Support acts as a price floor where buying interest may push prices back up, while resistance is a ceiling where selling pressure might reverse an uptrend. Spotting these levels enables traders to set better entry and exit points.

Step 6: Use Trendlines

Drawing lines that connect consecutive highs or lows helps visualize the trend direction. Uptrend lines connect higher lows, showing bullish momentum; downtrend lines connect lower highs, indicating bearish pressure. Trendlines also help identify when a trend might be weakening.

Step 7: Combine Indicators

Technical indicators like moving averages and the relative strength index (RSI) provide additional confirmation of trends or overbought/oversold conditions. Using indicators alongside chart patterns reduces false signals and improves trading accuracy.

By systematically applying these techniques, traders can master how to read the trading chart to make informed trading decisions.

Conclusion

Mastering how to read trading charts is essential for making well-informed trading decisions. By selecting the right chart type, choosing an appropriate timeframe, analyzing price patterns, evaluating volume, identifying support and resistance levels, using trendlines, and combining technical indicators, traders gain a comprehensive understanding of market behavior. With consistent practice and the right tools, traders can confidently interpret charts to better time their trades and improve their overall trading performance.

Learn How to Read Trading Charts with VT Markets!

VT Markets provides access to MetaTrader 4 and MetaTrader 5—trusted and reliable platforms equipped with advanced charting tools and real-time market data to help you master how to read trading charts. With a demo account, you can practice trading risk-free, sharpen your skills, and build confidence before trading live. VT Markets supports traders at all levels with educational resources and expert guidance to help you read trading charts effectively.

Start your trading journey with VT Markets and gain the confidence to interpret charts like a professional.

Frequently Asked Questions (FAQs)

1. How to read trading charts effectively?

To read trading charts effectively, follow these key steps:

• Step 1: Choose the right chart type, such as candlestick or line charts.
• Step 2: Set the appropriate timeframe based on your trading style.
• Step 3: Analyze price patterns to spot trends and reversals.
• Step 4: Evaluate volume to confirm the strength of price movements.
• Step 5: Identify support and resistance levels as key decision points.
• Step 6: Use trendlines to visualize the direction and strength of trends.
• Step 7: Combine technical indicators like Moving Averages and RSI for confirmation.

Practicing these steps regularly will help you master how to read trading charts confidently.

2. How important is volume in reading trading charts?

Volume is critical as it validates price movements. High volume confirms trends, while low volume may indicate weak or false moves.

3. Can I use multiple chart types simultaneously?

Yes, combining line, bar, and candlestick charts can provide a comprehensive view of market conditions.

4. How do I decide the best timeframe for reading charts?

Choose a timeframe aligned with your trading style. Short-term traders use minute charts, while long-term traders prefer daily or weekly charts.

5. What are support and resistance levels, and why do they matter?

Support and resistance are price points where the market tends to reverse or stall. Identifying these helps traders make better entry and exit decisions.

6. How do technical indicators complement trading charts?

Indicators like moving averages and RSI provide additional data on momentum and trend strength, confirming or warning against signals seen on the charts.

7. Is it necessary to use a demo account to learn how to read trading charts?

Yes, demo accounts allow you to practice chart reading and trading strategies without risking real money, which is essential for gaining confidence.

8. How often should I check trading charts when day trading?

Day traders often monitor charts continuously or at very short intervals (1-5 minutes) to catch quick price movements and adjust trades accordingly.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

The first week of June brings a mix of critical economic data, central bank decisions, and political developments that are likely to shape market sentiment. With investors closely watching the European Central Bank’s next move and the upcoming US jobs report, markets are poised for potential shifts in expectations around inflation, interest rates, and global growth.

KEY INDICATORS

Political events

• _{1 June: Second round of the Polish presidential election.}
• _{3 June: South Korean presidential election.}
• _{Canada’s Carney welcomes US court’s decision on tariffs.}
• _{Israel approves latest US ceasefire proposal for Gaza; Hamas yet to respond.}
• _{Trump could ask Supreme Court to halt tariff block as soon as Friday.}

Monetary policy and economic regulation

• _{Asia FX muted as dollar stems losses amid Trump tariff swings; PCE data on tap.}
• _{BofA sets AUD/JPY target at 100, cites Japan elections and RBA pause.}
• _{US ethane exports to China hit new roadblock with licence requirement.}
• _{Dollar edges higher on US court ruling; risk sentiment boosted.}
• _{Fed Chair Powell met with Trump at the White House on Thursday and told him rate decisions can’t be political.}

Markets, energy, and institutions

• _{Gold falls as traders await US data for clues to tariff impacts.}
• _{Dow, S&P 500, Nasdaq futures slip as Trump’s tariffs run into legal trouble.}
• _{Oil poised for second weekly loss ahead of OPEC+ supply decision.}
• _{STOXX 600 edges down on US trade uncertainties; set for monthly gains.}
• _{Japan stocks lower at close of trade; Nikkei 225 down 1.25%.}

MARKET MOVERS

Nasdaq 100

• _{Technical breakout: A breakout above the $21,400 resistance zone is in focus. Sustained movement above this level, especially on strong volume, would confirm bullish momentum.}
• _{Target projection: If the breakout holds, the next upside target lies at $21,625–$21,900 based on recent Fibonacci extensions and upward channel projections. In a strong bullish continuation, $22,100 could be in play.}
• _{Opening expectation: Futures suggest a mildly positive start to the week, with markets cautiously optimistic following ECB rate cut expectations and US job data.}
• _{Support zone: Immediate support lies at $20,900, with stronger support at $20,650–$20,700. A breakdown below this zone could invite deeper corrective moves towards $20,400.}
• _{Strategy: Bullish bias if price holds above $21,400, targeting $21,750+ with tight trailing stops. Caution warranted ahead of Friday’s non-farm payrolls — a weaker-than-expected print could increase volatility.}

Trade opportunity: Target 1: $21,625, target 2: $21,900.

XAU/USD

• _{Technical breakout: Gold is currently trading around $3,300, consolidating within a symmetrical triangle pattern. A decisive breakout above $3,325–$3,330 could signal a bullish continuation, potentially targeting higher resistance levels. Conversely, a breakdown below $3,280 may indicate a bearish trend, opening the path to lower support zones.}
• _{Target projection (bearish scenario): A drop below $3,280 may see gold prices decline towards $3,250, and potentially further to $3,200 if selling pressure intensifies.}
• _{Opening expectation: The market is expected to open near the $3,300 level, reflecting a neutral stance as traders await key economic data releases. Price action is likely to remain range-bound until a clear directional catalyst emerges.}
• _{Support zone: Primary support: $3,280–$3,250, secondary support: $3,200. These levels are critical; a breach below could accelerate downward momentum.}
• _{Strategy (bearish approach): Short positions may be viable if price breaks below $3,280, aiming for $3,250 and $3,200.}

Trade opportunity: Target 1: $3,280, target 2: $3,250.

Crude Oil WTI

• _{Technical breakout: WTI crude oil is currently trading around $61.12, exhibiting a bearish trend. A decisive break below the $60.09 support level could signal further downside potential. Conversely, a sustained move above $61.46 may indicate a bullish reversal, targeting higher resistance levels.}
• _{Target projection (bullish scenario): A breakout above $61.46 could lead to a rally towards $63.74, with further momentum potentially reaching $64.19.}
• _{Opening expectation: The market is expected to open near the $61.12 level, reflecting cautious sentiment amid concerns over potential OPEC+ production increases and global demand uncertainties.}
• _{Support zone: Primary support: $60.09, secondary support: $59.10, third support: $58.14.}
• _{Strategy (bullish approach): Long positions may be viable on a confirmed breakout above $61.46, aiming for $63.74 and $64.19, with a stop-loss below $60.09.}

Trade opportunity: Target 1: $62.30, target 2: $63.04.

NEWS HEADLINES

ECB pause nears as euro and Aussie strengthen

• _{European Central Bank policymakers are expected to deliver a final interest rate cut in June before entering a pause phase, as evolving economic conditions warrant a more cautious approach.}
• _{Seasonal trends point to potential strength in EUR/USD and AUD/USD in June, offering bullish momentum for both currency pairs amid dovish policy expectations.}

Oil slips, tech shines, tariffs weigh

• _{WTI crude oil prices have dropped to four-year lows, driven by accelerated production hikes from OPEC+, fuelling concerns over a growing supply glut.}
• _{Gold futures edged lower as a strengthening US dollar dampened investor demand for the precious metal.}
• _{Wall Street futures slipped as renewed tariff concerns resurfaced following a US federal appeals court ruling.}
• _{Meanwhile, strong earnings from AI leader Nvidia helped offset broader uncertainty, boosting investor confidence in the technology sector.}

India gains, Japan slows

• _{Japan’s factory output declined by 0.9% month-on-month in April, signalling ongoing challenges in its manufacturing sector.}
• _{In contrast, India’s GDP growth gained pace in the March quarter, supported by robust rural demand and increased state spending, suggesting growing economic momentum.}

Click here to open account and start trading.

The Japanese yen is drawing increased attention from traders as shifting inflation dynamics and policy expectations begin to reshape the currency landscape. Recent developments in Tokyo’s economic data have revived discussions around the Bank of Japan’s next moves, while global uncertainty is driving investors towards safer assets.

Yen strengthens as Tokyo inflation fuels policy shift hopes

The Japanese yen continued to gain ground on Friday, breaking decisively below the 144.00 level against the US dollar.

This move followed unexpectedly strong inflation data out of Tokyo, fuelling renewed speculation that the Bank of Japan (BoJ) could begin tightening monetary policy sooner than previously anticipated by the markets.

The Tokyo core Consumer Price Index (CPI), often viewed as an early indicator of national inflation trends, posted a higher-than-expected reading.

This surprise prompted traders to reassess their interest rate outlook, with market consensus now leaning towards a potential 25 basis point hike in July.

Overnight index swaps have begun pricing in increased odds of further gradual policy tightening by the BoJ throughout the remainder of 2025.

Policy insights and domestic pressures

In comments delivered on Friday, BoJ Governor Kazuo Ueda addressed the bank’s recent downgrade of its inflation forecast. He attributed the revision to a range of external factors, including lingering trade uncertainties, a decline in cost-push inflation, and weaker global oil prices.

Despite this, Ueda reaffirmed the central bank’s commitment to its 2% inflation target, suggesting that future policy moves will be guided primarily by domestic factors such as wage growth and consumer spending.

As one of the few major central banks still transitioning away from ultra-loose monetary policy, the BoJ’s cautious approach makes the yen especially sensitive to any signs of rising inflation.

Analysts expect a gradual shift towards policy normalisation, especially if domestic demand shows signs of resilience.

Geopolitical risk boosts safe-haven demand

The yen also benefitted from heightened demand for safe-haven assets after a US appeals court reinstated former President Trump’s reciprocal tariff initiative.

The legal reversal sparked fresh concerns over escalating trade tensions, reversing earlier risk-on sentiment and putting downward pressure on the US dollar.

Traditional safe havens, including the yen and the Swiss franc, saw renewed inflows as investor sentiment turned cautious.

This latest development adds another layer of uncertainty for global trade, particularly in Asia. With its sizeable trade surplus and deep integration into global supply chains, Japan may once again find itself under scrutiny if protectionist measures from the US begin to escalate.

USD/JPY technical analysis: Downtrend remains intact

On 29 May, USD/JPY briefly touched a session high of 146.284 before reversing course and entering a sustained downtrend that extended into 30 May.

Price action remains consistently below the 30-period moving average, a clear indication of bearish market sentiment.

Attempts at short-term recoveries have repeatedly met resistance at the 10- and 30-period moving average crossovers.

The MACD indicator crossed below its signal line during the initial stages of the decline and has continued to signal weakness, although the histogram is now hinting at early stabilisation.

Key support is forming near 143.441, with price consolidating just above this level.

A break below could open the door to further losses towards the 143.00 zone, while a return above 144.20 would be needed to alter the near-term bearish outlook.

Unless USD/JPY can reclaim the 144.50 area in early trading next week, a retest of the 143.00–143.40 support region is likely.

However, upcoming US inflation and employment data could significantly influence the pair’s direction.

A stronger-than-expected print may revive expectations of further tightening by the Federal Reserve, potentially limiting further yen appreciation.

Outlook: Yen strength underpinned by fundamentals and global caution

At present, bullish momentum for the yen remains firmly in place, supported by both solid domestic inflation signals and rising global economic uncertainty.

Stronger-than-expected price data from Tokyo has bolstered confidence that the Bank of Japan may be preparing to gradually move away from its ultra-loose stance, reinforcing the yen’s appeal.

At the same time, growing concerns around trade tensions and broader geopolitical risk have reignited demand for traditional safe-haven currencies.

As markets turn their attention to upcoming US inflation and labour market figures, the near-term trajectory of USD/JPY will likely hinge on a delicate balance between domestic monetary policy signals and shifting global risk sentiment.

Unless there is a significant surprise from US macro indicators, the current environment appears favourable for continued yen strength—though volatility is expected to remain elevated.

Click here to open account and start trading.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Find us at Money Expo Colombia, Booth 9!

We are proud to be a Diamond exhibitor at Money Expo Colombia, one of Latin America’s premier financial events. Connect with top industry leaders, investors, and traders over two days of insightful talks, networking, and market innovation.

This event brings together the best in finance to explore:
• Forex, stocks, indices, gold, and crypto
• Trading platforms and tools
• Investment strategies and fintech developments

Featured Session
Forex, Indices, Gold, or Crypto: Choose the Ideal Asset for Your Trading Style
Speaker: Jonathan Vargas, Team Leader of Business Development, VT Markets
Date: 25 June
Time: 11:15 am – 11.30 am

Explore how to align your trading strategy with the right asset class. Jonathan will share expert insights on choosing between forex, indices, gold, and crypto — based on risk profile, market conditions, and your trading approach.

About Jonathan Vargas:
• Team Leader of Business Development at VT Markets
• 5+ years of experience in market analysis and strategic growth
• Key figure in VT Markets’ expansion across Latin America and Spain
• Known for strong analytical skills and results-driven leadership

Venue: Ágora Bogotá Convention Center in Bogotá, Colombia.
Date: 25th – 26th June 2025
Time: 10:00 AM to 6:00 PM (UTC -5).

Find us at Rankia Sao Paolo, Booth 4!

The Rankia Markets Experience unites financial experts, investors, traders, and enthusiasts for high-value educational conferences. It offers up-to-date knowledge on financial markets, technical analysis, investment strategies, financial products, and finance technologies. Suitable for both experienced investors and beginners, the event promotes financial education with practical tools and strategies, providing a unique opportunity to learn from top experts and network with peers.

Featured Session
Speaker: Vitoria Saddi, Country Manager – Brazil, VT Markets
In this session, Vitoria will share actionable insights on navigating the toughest hurdles traders face today.

About Vitoria Saddi:
• Country Manager for Brazil at VT Markets
• Formerly held leadership roles at Pacific Financial Derivatives, FX Primus, and City Credit Capital
• Ex-Head of Derivatives & Structured Products at JP Morgan Alternative Asset Management, NYC
• Advised on the Greek debt restructuring and served as Chief Economist for Latin America at major institutions including Citibank
• Co-founded and contributed market insights to Seeking Alph

Venue: Espaço Fit Eventos – Nações Unidas
Date: 25th June 2025
Time: 9am – 6pm (UTC -3)

Dear Client,

Affected by international holidays, the trading hours of some VT Markets products will be adjusted. Please check the following link for the affected products:

Notification of Trading Adjustment in Holiday

Note: The dash sign (-) indicates normal trading hours.

Friendly Reminder:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.