How do I learn to read historical charts?
I want to learn how to actually read historical charts and understand which setups work in which market conditions. I’m currently reading The Art and Science of Technical Analysis by Adam Grimes. I’m on part 3, where he explains different setups along with rules for entry, stop loss, targets and risk management. I understand the rules, but I don’t really know how to actually read a chart, where to spot these setups, and what market conditions they work best in.
I’m currently on tradingview using the replay feature, looking at historical charts drawing trendlines wherever I can, and marking highs, lows and swing highs. But I’m still unable to understand where to enter, where to set my stop loss, and where to set my target, even though I understand the basic rules explained in the book.
I want to use historical charts to practice reading price action, identify different setups, understand why they worked or failed and then learn how to use that information in the live market. What would be the best way to approach this? How do you guys recommend learning to read historical charts properly?
Any advice would be really appreciated.
Please and thank you!