A stock chart is not a mysterious picture — it is a record of every single trade that has taken place in a stock or index. Once you know what you are looking at, you can see trends, support/resistance levels, and the balance of buyer and seller pressure at a glance. This guide walks you through every element from scratch.
Step 1 — Open TradingView and Pull Up a Chart
TradingView (tradingview.com) is the most widely used free charting platform in India. It is what most NSE traders use and what we reference in all our Academy articles.
- Go to tradingview.com — free account, no payment required
- In the search bar, type "NIFTY50" and select "NSE:NIFTY50"
- You will see a candlestick chart — this is the Nifty 50 daily chart
- On the bottom left, you can change the timeframe — start with "1D" (daily)
The Main Elements of Every Stock Chart
- Price axis (Y-axis, right side): Shows the price scale. The higher on the chart, the higher the price.
- Time axis (X-axis, bottom): Shows time moving from left (past) to right (present). On a daily chart, each point represents one trading session.
- Candlesticks: The green and red bars that fill the chart. Each one shows the Open, High, Low and Close for that time period. (See our Candlestick article for a full explanation.)
- Volume bars (bottom panel): Shows how many shares or contracts traded during each session. Higher volume = more participation = more significant price movement.
Reading the Trend — The Most Important Skill
The single most important thing to read from any chart is the trend. Is price generally moving higher, lower, or sideways?
- Uptrend: Price makes Higher Highs (each rally peak is above the previous one) and Higher Lows (each pullback stops higher than the previous pullback). The chart "stair-steps" upward from left to right.
- Downtrend: Price makes Lower Highs and Lower Lows. The chart "stair-steps" downward from left to right.
- Sideways/Range: Price oscillates between two relatively fixed levels without making new highs or lows. The chart moves horizontally.
On TradingView, draw a trendline by clicking the trendline tool (left toolbar) and clicking two swing lows in an uptrend (or two swing highs in a downtrend). A rising trendline connecting higher lows = uptrend confirmed.
Support and Resistance Levels
- Support: A price level where buying has historically appeared and prevented further price decline. On the chart, it appears as a horizontal level where price has "bounced" multiple times. Draw a horizontal line across the recent lows that align at the same level.
- Resistance: A price level where selling has appeared and prevented further price rise. Appears as a level where price has "stalled" and reversed multiple times.
- The flip rule: A broken support level often becomes resistance, and a broken resistance often becomes support. This is one of the most reliable principles in technical analysis.
Reading Volume
Volume is shown as bars at the bottom of the chart. Key volume rules:
- High volume on a green candle: Strong buying. Institutions are participating. The move is likely genuine.
- High volume on a red candle: Strong selling. Distribution — institutions are unloading shares.
- Low volume on any candle: Low conviction. The move may not sustain.
- Rising price + rising volume: Healthy uptrend. Buyers are enthusiastic.
- Rising price + falling volume: Weakening uptrend. Buyers are losing conviction. Potential reversal ahead.
Three Simple Indicators for Beginners
Before adding any indicators, understand that price and volume alone contain all the information you need. Indicators are derived from price — they can never tell you more than the raw price action already tells you. With that said, three simple indicators are useful for beginners:
- Moving Average (20-period): A line that shows the average closing price of the last 20 sessions. Price above the 20-MA = uptrend. Price below = downtrend. Add it in TradingView: Indicators → "Moving Average" → Period: 20.
- Volume Average: A horizontal line through your volume bars showing average volume. Any day significantly above the average line = high participation day worth noting.
- RSI (Relative Strength Index): Shows whether a stock is "overbought" (above 70 = getting expensive) or "oversold" (below 30 = getting cheap). Use it as a supplementary confirmation only — not as a standalone signal.
Complete NSE Chart Walkthrough — Step by Step
- Open TradingView → search NSE:NIFTY50 → set to Daily (1D) timeframe
- Look at the last 3 months of candles. Is the chart trending up, down, or sideways?
- Find the most recent swing high (highest point before a pullback) and swing low (lowest point before a rally)
- Draw a horizontal line at both levels — these are your key support and resistance
- Add a 20-period Moving Average — is price above or below it?
- Look at the volume bars — are high-volume days mostly green (bullish) or red (bearish)?
- Write your conclusion in your journal: "Trend is [up/down/sideways]. Key resistance: [X]. Key support: [Y]. Volume confirms [bullish/bearish/neutral]."
Open these four charts on TradingView right now and answer the questions below for each:
1. NSE:NIFTY50 (Daily) 2. NSE:HDFCBANK (Daily) 3. NSE:TCS (Daily) 4. NSE:RELIANCE (Daily)
For each: Is it in an uptrend, downtrend, or range? Where is the most obvious support? Where is the most obvious resistance? Is the 20-MA rising or falling? Are the high-volume days mostly bullish or bearish?
Do this exercise for 5 minutes per chart. After 20 minutes total, you will have developed more practical chart reading skill than most people get from reading about it for hours. Reading charts is a physical skill — it develops through practice, not theory.
You now understand how NSE and BSE work, have a Demat account, know what Nifty 50 is, have a SIP investment plan, know the mistakes to avoid, and can read a basic stock chart. This is a genuine foundation. The next step is to deepen your price action knowledge — start with the Price Action section of the Academy, beginning with How to Trade Nifty 50 With Pure Price Action.