WHAT'S IN A CHART?

I’ll cover Three main Things Today:

1.What’s the Trend?

2.Always check the price and volume&

3.Is the stock finding the support or hitting the resistance?

1:TRENDS:

A trend in the stock market: is the direction that prices are moving in, based on where they have been in the past. Trends are made up of peaks and troughs, and the direction of those peaks and troughs indicates the trend. 

Here are some ways to identify trends in the stock market:

• Moving averages

  A statistical measure that smooths out fluctuations in data over time. An upward slope indicates an uptrend, a downward slope indicates a downtrend, and a flat line indicates a sideways trend. 

• Linear regression

  A statistical method that fits a line to data to determine the slope of the line, which can indicate the direction and strength of the trend. 

• Correlation

  A statistical measure that indicates the strength and direction of the relationship between two variables. 

• Chart patterns

  Geometric shapes that form when the price moves in a certain way. They can indicate the psychology and behavior of the market participants and predict the future direction of the price. 

• Trendlines

  A line drawn over pivot highs or under pivot lows to show the prevailing direction of price. 

Trend traders may use these tools to buy during an uptrend when the price pulls back and then bounces higher off of a rising trendline. They may also short during a downtrend when the price rises to and then falls away from a declining trendline.

EXAMPLES: 

An uptrend trend rose in $spy as a Trader may simply buy some shares here.

You want to buy stocks when it’s showing strength not weakness.

STRENGTH: Means the stock is Trending higher and finding support at key moments—both signs that institutional investors are buying shares.

2: ALWAYS CHECK THE PRICE & VOLUME:

Price & Volume: Are like elephants in the bath tub they can’t hide. When they jump in all water will be splashed all over the places.

So you can’t miss the opportunity as long as price and volume is higher or lower.

When volume is higher it’s good opportunity to buy more shares because the market acts like not boring by that time.

When vice versa sell half of your shares to avoid psychological matters.

Institutional buying: Big price gains on unusually heavy volume.

$sepn

Big price gains on unusually volume show institutional investors are buying aggressively. It’s also a bullish sign when the stock’s closing price is in the top pat of the range for that day or week.

$SEPN

3: IS THE STOCK FINDING THE SUPPORT OR HIT THE RESISTANCE?

Think of it like a floor(support) & ceiling (resistance).

A 10-week moving average can be used to identify support and resistance levels in a stock, and to help predict future short-term momentum: 

• Support

  When a stock price dips below the 10-week moving average line, institutional investors may buy more shares to protect their positions. This can be seen as a sign of support, and the stock may bounce back above the line. 

• Resistance

  When a stock price falls below the average price over the past 10 weeks, it may act as resistance. This is because investors who have already taken a position may consider closing it to avoid a large loss. 

• Trend direction

  If the price is above a rising 10-week moving average, it's in an uptrend. If the price is below a declining 10-week moving average, it's in a longer-term downtrend. 

• Trading volume

  Heavy trading volume as a stock breaks through the moving average line can be a warning sign. Light volume could mean the selling is less serious. 

Traders can use moving averages in a variety of ways, such as to anticipate moves to the upside or to exit trades. They can also add more than one length moving average to visualize different levels of support and resistance. 

$META.

HAVE A GREAT DAY AND GOD BLESS YOU ALL: