For beginners on Stockity, trading digital options can feel like a guessing game—especially if you’re not sure how to read the charts. But once you understand how to analyze the chart, you’ll realize that trading isn’t just about luck. It’s about making smart, informed decisions based on patterns and market behavior.
In this guide, you’ll learn the basics of how to read charts on Stockity and how to use that knowledge to improve your trades.
1. Understanding the Chart Interface
When you open a trading pair on Stockity (like EUR/USD or BTC/USDT), the first thing you see is a live price chart. This is where you analyze price movements before placing a trade.
Here’s what you’ll notice:
- Candlestick or Line Chart: Stockity mainly uses candlestick charts, which show how the price moves during a specific time frame.
- Time Frame Selection: You can choose how much time each candle represents (e.g., 1 minute, 5 minutes).
- Price Movement: The chart moves left to right, with the most recent price shown on the right edge.
- UP and DOWN Buttons: These are for placing your trade, based on whether you expect the price to rise or fall.
2. How to Read Candlestick Charts
Candlesticks are visual tools that tell you a lot about market activity in just one glance. Each candle shows four things:
- Open Price: Where the price started at the beginning of the time frame.
- Close Price: Where the price ended at the end of the time frame.
- High & Low: The highest and lowest prices during that period.
Green candles (or white, depending on the theme) mean the price went up.
Red candles mean the price went down.
By watching how candles form, you can spot market trends and predict possible movements.
3. Look for Trends
A trend is the general direction in which the market is moving.
- Uptrend: A series of higher highs and higher lows. The price keeps climbing.
→ Consider trading UP (buy) - Downtrend: A series of lower highs and lower lows. The price keeps falling.
→ Consider trading DOWN (sell) - Sideways/Range: The price bounces between two levels without a clear direction.
→ Wait or use short-term strategies like support/resistance.
Tip: Never trade against a strong trend unless you have experience. “Trend is your friend” for a reason.
4. Use Support and Resistance Levels
These are key price levels where the market often reacts.
- Support: A price level where the asset tends to stop falling and bounce back up.
→ Good place to consider UP trades. - Resistance: A price level where the asset tends to stop rising and bounce back down.
→ Good place to consider DOWN trades.
You can spot these levels by looking at where the price has reversed several times in the past.
5. Watch for Candlestick Patterns
While there are dozens of patterns, here are a few simple ones beginners can look for:
- Doji Candle: The open and close prices are almost the same. It signals indecision.
→ Wait before trading. - Engulfing Candle: A large candle “engulfs” the previous smaller one.
→ Signals a possible trend reversal. - Three Green/Red Candles in a Row: Indicates strong momentum in one direction.
→ Follow the trend but be cautious of overbuying/selling.
6. Use Timeframes Wisely
If you’re trading with a 1-minute expiry, don’t rely on a 5-second chart—it’s too fast and chaotic. Stick to the 1-minute or 5-minute charts to get a clearer picture of where the price is going.
Short time frames = quick trades, but they also bring more noise and false signals. Stay focused on the bigger trend.
7. Combine Chart Reading with Discipline
Reading charts is only part of the process. Making smart trades also requires:
- Patience – Don’t force trades when the market is unclear.
- Risk Management – Only risk 1–5% of your balance per trade.
- Emotional Control – Stick to your plan, even after wins or losses.
Conclusion
Learning to read Stockity charts can feel intimidating at first, but with time and practice, it becomes your most valuable trading skill. The more you understand how prices move and why, the better your trading decisions will be.
Start with simple patterns, follow the trend, and always manage your risk.
Smart trades begin with smart analysis—and now, you’ve got the tools to do just that.
Happy trading!