How to read a chart like a PRO. Here's our Noob vs Pro chart analysis lesson 3

1. Bottom - Capitulation Area:

- This level represents the market bottom, where selling pressure was at its peak, often driven by fear or panic selling. Traders typically identify this as a potential reversal zone.

2. PRE BULL MARKET:

- After the capitulation, the market enters a consolidation phase. Buyers start to accumulate positions, signaling the beginning of a recovery and the first phase of a bullish market.

3. SECOND PRE BULL AREA:

- This represents another consolidation or accumulation phase before the breakout. Prices often hover between a range, with lower volatility, preparing for a significant upward movement.

4. Start of Golden Bull:

- This marks the clear beginning of a strong bullish trend. The price breaks out of the previous resistance zones with strong momentum, and buyers dominate the market.

5. Start of Super Cycle:

- A supercycle refers to an extended bull market phase where prices rise significantly, often fueled by massive market sentiment, investor confidence, or broader macroeconomic factors.

6. Current Market State:

- The price is forming a flag pattern after the parabolic move upward, indicating a potential continuation of the trend. A flag pattern in a bullish market is generally a consolidation before a breakout to the upside.

7. Projections:

- The upward green arrow suggests a bullish bias with a potential breakout from the current flag pattern, aiming toward higher price targets.

Key Indicators:

- Support and Resistance Levels: These are the horizontal purple lines marking critical price zones. Each level shows where previous buying or selling pressure occurred.

- Flag Pattern: The price is currently consolidating in a tight range, forming this continuation pattern. If the price breaks upwards, it signals the continuation of the bullish trend.

The overall analysis suggests that the asset is in a strong bullish trend, with potential further upside after the consolidation phase. If the flag breaks upward, it could trigger another leg of the rally. However, if the price fails to break the flag pattern, it may indicate temporary weakness or a potential correction.