TRADEABLE CHART

Understanding Market Behavior Through Tradeable Charts

What is a Tradeable Chart?

A tradeable chart is a tool used by traders to analyze the market and gain insights into market behavior. By understanding price movements, traders can determine whether the larger market community consists of large institutional traders or retail traders. Moreover, traders can analyze how long institutional traders are expected to remain in the market and what direction they are likely to move in.

How to Identify Large Traders in the Market

To align with the larger market community, it is essential to use a clear and readable chart. A tradeable chart allows you to:

Identify whether large traders are active in the marketDetermine the direction they are positioned inUnderstand how long they are likely to stay in the market

In classic technical analysis, traders often use multiple time frames and a combination of indicators to confirm signals. For instance, when buy signals or uptrend confirmations align across several timeframes, it strengthens confidence to enter or exit a trade. This alignment aims to confirm that traders are in sync with the larger market.

However, relying solely on indicators, oscillators, and traditional methods may have limitations in identifying the larger trading community. The key challenge is determining if large traders are influencing price movements or if retail traders dominate the market. This is where a tradeable chart comes into play, offering more precise insights into market sentiment.

Mental State and Trade Clarity


A trader’s mental state plays a crucial role in executing successful trades. If a trader is not in a positive mental state, it will affect their ability to trade effectively. Moreover, choosing the right chart is just as important. If a tradeable chart is not clear enough or does not provide enough market clarity, entering the market may not be advisable.

The Importance of Clarity in Charts

What Makes a Chart Clear?

Clarity in a tradeable chart doesn’t always refer to seeing steps, corrections, or increased price movement. Sometimes, clarity comes from being able to make quick decisions—either to enter the market with confidence or to avoid poor trades that could negatively affect your state of mind. When a chart is clear, it signals to the trader whether the market is ready for a move or if it is best to stay out of the market.

Think of it as a social interaction analogy. Imagine you're traveling on a bus. The person sitting next to you has a significant impact on your choice. Would you rather sit next to someone who looks disciplined and composed, or someone who seems disheveled and disruptive? Similarly, a tradeable chart should provide clear visual signals, so you know whether to "sit next to" or engage with the market, depending on its clarity.

Tradeable Chart: A Tool for Smarter Trading Decisions


A tradeable chart should provide enough information for a trader to make an informed decision. If the chart offers clear insights, such as projections, extensions, and support/resistance levels, the trader can confidently enter the market. On the other hand, if there’s no clarity, it’s better to stay out of the market until the right conditions emerge

The same observation applies in the market. The personality of traders, based on their impact on prices, determines what type of traders are currently in the market. For example, look at the Bitcoin chart:

In each of the areas marked with numbers 1 to 4, there have been different types of traders with varying amounts of capital. Which scenario shows the presence of large traders more clearly? And if we were to rate them, which scenario would receive a higher score? Ideally, we would like to be in a scenario with large traders. This means those who have enough capital that when we align with them, the price moves significantly enough to make it worthwhile.

Scenarios 1 and 4 indicate that the traders present are large, with significant capital and consistent decision-making. They do not frequently change their decisions, unlike in scenarios 2 and 3 where traders often alter their decisions, leading to inconsistent price action and creating a sideways range. In scenario 2, the large traders present in scenario 1 are in the process of cashing out and changing direction. In scenario 3, large traders are practically absent, and this scenario is created by small traders with minor amounts of capital.

Key Elements of a Tradeable Chart:

Projections and Extensions: These features help in understanding price potential.

Support and Resistance Levels: Identify where price is likely to reverse or consolidate.

Clear Market Trends: Helps in determining whether the market is trending or ranging.

Psychological Factors: A trader’s emotional state can influence their decisions and affect trading success

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