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Thinking about trading in the markets
But don't know where to get started?
Let me give you the rundown on
"Technical Analysis 101"
- A THREAD -
But don't know where to get started?
Let me give you the rundown on
"Technical Analysis 101"
- A THREAD -
1.
Before getting started
What is technical analysis (TA)?
This strategy focuses on speculating where a stock will move short term...
Before getting started
What is technical analysis (TA)?
This strategy focuses on speculating where a stock will move short term...
2.
Starting off with the basics
You'll be looking to find what is known as support and resistance levels on the DAILY/WEEKLY chart
- Support is the level where the stock is likely to stop going lower
- Resistance is the level where the stock is likely to stop going higher
Starting off with the basics
You'll be looking to find what is known as support and resistance levels on the DAILY/WEEKLY chart
- Support is the level where the stock is likely to stop going lower
- Resistance is the level where the stock is likely to stop going higher
3.
You can think of support and resistance as a box the stock is stuck in
The more times it pushes either end of the box
The weaker the box will become
We want to buy when either end of the box has been "attacked" 3+ times
Take a look at $KMB
You can think of support and resistance as a box the stock is stuck in
The more times it pushes either end of the box
The weaker the box will become
We want to buy when either end of the box has been "attacked" 3+ times
Take a look at $KMB
4.
When a stock breaks out, we want to see an increase in volume
Volume relates to the number of shares traded daily
Notice how $KMB's volume rose (2x above the average) on the day of it's breakout
This is what we ideally want to see
When a stock breaks out, we want to see an increase in volume
Volume relates to the number of shares traded daily
Notice how $KMB's volume rose (2x above the average) on the day of it's breakout
This is what we ideally want to see
5.
Volume paired with support & resistance is a great combination
It helps confirm us confirm the stock does want to go higher
The surge in volume is what helps the stock break that pesky resistance level..
Volume paired with support & resistance is a great combination
It helps confirm us confirm the stock does want to go higher
The surge in volume is what helps the stock break that pesky resistance level..
6.
The final indicator I use are the moving averages (MA)
The MA's tell us the average closing price over a specific period of time
I use the 8/21 (short term trading) & the 50/200 (longer term trading)
The final indicator I use are the moving averages (MA)
The MA's tell us the average closing price over a specific period of time
I use the 8/21 (short term trading) & the 50/200 (longer term trading)
7.
Take a look at $KMB again
Here are what the colored lines represent:
Pink - 8MA
Light Blue - 21MA
Blue - 50MA
Orange - 200MA
Notice how the 8/21 stayed very close as the stock prepared to break higher
In fact $KMB used the 21 as support before breaking higher...
Take a look at $KMB again
Here are what the colored lines represent:
Pink - 8MA
Light Blue - 21MA
Blue - 50MA
Orange - 200MA
Notice how the 8/21 stayed very close as the stock prepared to break higher
In fact $KMB used the 21 as support before breaking higher...
8.
Next up we'll be looking at chart patterns
I won't go over each of these
I will tell you my favorites though:
- Bull Flag
- Cup w/ Handle
- Ascending Triangle
- Symmetrical Triangle
Feel free to DM if you have any questions here
Next up we'll be looking at chart patterns
I won't go over each of these
I will tell you my favorites though:
- Bull Flag
- Cup w/ Handle
- Ascending Triangle
- Symmetrical Triangle
Feel free to DM if you have any questions here
9.
We're nearing the end now...
Let's talk about your risk reward ratio
Ideally you want to achieve a 1:5 ratio
Meaning you want to make $5 for every $1 risked per share...
We're nearing the end now...
Let's talk about your risk reward ratio
Ideally you want to achieve a 1:5 ratio
Meaning you want to make $5 for every $1 risked per share...
10.
This ratio is found through a simple equation:
Entry price - stop price = risk/ share
Risk/share x 5 = target profit
Target profit + entry = target price
This ratio is found through a simple equation:
Entry price - stop price = risk/ share
Risk/share x 5 = target profit
Target profit + entry = target price
11.
You should always enter a trade risk first
You won't get far risking $100/trade only to sell for a $10 gain
Make the numbers work in your favor vs against you
You should always enter a trade risk first
You won't get far risking $100/trade only to sell for a $10 gain
Make the numbers work in your favor vs against you
These are the basics of technical analysis
Not as bad as you may have thought right?
If you're still unsure then I have a great offer for you...
Not as bad as you may have thought right?
If you're still unsure then I have a great offer for you...
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People are loving it and making their money back within their first trade
I'm even offering 1 on 1 mentoring (today only)
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Keep reading...
People are loving it and making their money back within their first trade
I'm even offering 1 on 1 mentoring (today only)
Want to make money with me?
https://gum.co/elIOM
Keep reading...
If you don't believe me...
Take a look at what people are saying below
Iâd upload more, but I can only stick to 4 per post..
So then, whatâs stopping you?
Take a look at what people are saying below
Iâd upload more, but I can only stick to 4 per post..
So then, whatâs stopping you?
