Technical analysis carries a bad reputation: too many self-styled "experts" predicting the future with esoteric indicators. Yet four simple concepts are enough to understand the structure of a stock chart — and those four are useful regardless of how much time you spend on fundamental analysis.
The trend
A rising trend reads visually: the price prints higher highs and higher lows. A falling trend is the reverse. A trendless market drifts in a horizontal channel, oscillating around the same level.
Rule of thumb: do not fight the prevailing trend on short horizons. Over the long run, trend matters less than the underlying business quality.
Supports and resistances
A support is a price level where declines tend to stall and buyers regain control. A resistance is the opposite: a level where rises stall and sellers return. The more times a level has been tested and held, the more credible it is.
When a support breaks, it often becomes a resistance in the next move — and vice versa. This "polarity" behaviour is one of the most reliable patterns visible on charts.
Volume
Trade volume indicates the conviction behind a move. A price rise on heavy volume carries more weight than a move on thin volume. A break of support or resistance is only credible when accompanied by a volume spike — otherwise it is likely a false signal.
Japanese candlesticks
Rather than simple bars, most charts use candlesticks: a body (rectangle) between open and close, plus two wicks (thin lines) marking the session's high and low. Green or light = up, red or dark = down. The shape tells the story of the session: a long green body with short wicks signals strong buying conviction.
A boundary to keep in mind
No chart reading replaces fundamental analysis. Charts help with entry / exit timing; deciding to invest in a company demands reading its accounts. Reversing that order is the classic mistake.
In practice
A beginner can start by observing the six-month trend, marking two or three key supports / resistances, and watching volume around each break. Those three pieces of information already filter out 80 % of mistimed buys.