This is a tutorial and my own system of playing stocks. Just as some people like Tim Sykes don't use technical analysis, I don't use charts to play stocks. I've done fairly well. My biggest trade to date is TRXC which almost hit $1 mil from a $200k investment. But I have not closed the trade so anything can still happen.

Firstly let me say why I don't use charts. Some of you will roll your eyes and think that's dumb etc. You're free to believe in your system, as I in mine. I don't discard that they affect traders' thought process. For sure they are tools that most traders would use. Let's think of what charts are in the first place. It is a man made system to create some kind of order to give prediction on where the stock is going. It measures buyers and sellers action in time intervals. For day trading candlesticks patterns can be effective. But in a longer time scale like weeks and months, it is almost useless. 

Stocks leave a trail of the battle scene that is recorded. Imagine if you will two fighters (bear and bull) who left their footprints in the sand on a beach. After they've left, we see their footprint and record it as a victory for one of them. More battles and more trails of footprints. Now those players may have left the battle so the number of bears and bull is never the same for the current time versus weeks or months ago. But we decided to measure these footprints as if they are still around as support and resistance. I believe that's all psychological. It's a case of we see what we want to see. We see resistance from 2 months ago left by the battle and use it for our trade. Well, those bears and bulls are long gone and do not represent the current ratio of bears and bulls which is the real measure of support and resistance. However, if the majority of people believe in the illusion it becomes reality just like in a magic show where the audience is tricked to seeing what the magician wanted them to see. Charts can be like this. It is an illusion and psychological. At every second or minute of the trade people leave the trade and new people enter and leave the trade, especially day traders. They may never come back. The trail is left but the ratio of bears/bulls is ever changing from a day or week ago. 

Part 2 to follow.