
Technical analysis examines past price movement to predict future trends and patterns, recognizing repeating price action to identify trends and entry or exit points.
Use Thinkorswim by TD Ameritrade as the primary trading software for practice, setup, and visuals; download the Thinkorswim desktop platform and prepare your account for parts 3 and 4.
Discover how charts visually represent stock price movements with Japanese candlesticks, the standard. Explore bar and line charts and time frames from five minutes to monthly for day trading.
Learn to read Japanese candlesticks on five-minute intervals, identifying open, close, high, and low with wick dynamics, including bullish candles and doji break-even patterns.
Navigate the chart tools on the investment platform, input Nvidia stock tickers, configure appearance and time frames, and manage and link multiple charts with drawings, RSI, and moving averages.
Learn what trends are: stock prices moving in one direction consistently, with uptrends, downtrends, and sideways trends, as investors believe prices will continue in that direction.
Identify an upward trend by watching higher highs and higher lows on the chart, which appears after two to three instances, signaling a consistent stock rise and potential profits.
Identify a downtrend by noting lower highs and lower lows across moves. See a continued pattern of lower highs and lower lows, signaling a potential downward move.
Identify a sideways trend when the stock price forms equal highs and lows. This strong sideways pattern shows alternating increases and decreases until a big event changes the trend.
Identify uptrends in stocks using five-minute candle charts, zoom tools, and pattern signals across Nvidia, the spy, Apple, and other names to practice and prepare for real money trading.
Identify downward trends by tracing lower highs and lower lows, spotting trend shifts, and using quick in-and-out moves to lock in profits in Nvidia, Apple, and S&P 500 stocks.
Identify sideways trends by marking resistance and support lines as Nvidia and other stocks oscillate within a defined range, and note options decay over time.
Learn how technical analysis uses past price movement to predict future trends by identifying support and resistance as price levels where prices struggle to fall below or rise above.
Supply and demand drive stock prices; when demand increases and supply decreases, prices rise, and support lines attract buying, causing prices to bounce off support.
Explain how resistance levels arise from shifting supply and demand, and how heavy selling by investors pushes prices down, as SPY resists at $446 per share.
Price breaks below support lines indicate a breakout, turning the support into resistance and signaling a likely downward trend with lower highs and lower lows.
See how price breaks the resistance line, creating a breakout that turns resistance into support and signals a strong upward trend with higher highs, higher lows, and a buy opportunity.
Learn to draw support and resistance lines on a trading chart using the price level tool, place and extend lines across days, add multiple lines, and remove drawings.
Identify support and resistance lines on Apple (AAPL) by spotting where price repeatedly bounces at lines, and note how breaking above resistance can convert it into support.
Identify support and resistance lines on the spy chart, learn how breaks turn resistance into support, and apply RSI and moving averages with other data for informed trading.
Explore exponential moving averages and how 50, 100, and 200 day EMAs reveal bullish or bearish trends, signal breakouts, and guide entry and exit points using Moderna as an example.
Learn to add exponential moving averages to charts by adding 50, 100, and 200 day EMAs based on closing prices, with teal, blue, and purple colors.
Use exponential moving averages (50, 100, 200 days) to identify uptrends and downtrends in META and AAPL, spotting entry points and confirming signals while avoiding single-indicator trades.
Master how the relative strength index signals momentum by marking overbought and oversold conditions with 70 and 30 thresholds, guiding buy and sell decisions, and integrating RSI with candlestick charts.
Learn to add the RSI to trading charts, apply standard settings, and interpret overbought 70 and oversold 30 signals to guide trading decisions.
Explore how the RSI relative strength index flags overbought and oversold signals for SPY and NVDA, guiding call and put decisions with moving averages, support and resistance, and market data.
Practice simulated or paper trading to master skills before risking real money in live markets. Access the options trading practice course via the link in the next lecture.
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In this course, you will learn:
Understand the basics of technical analysis and why it is important
Learn to read and interpret Japanese candle stick charts
Learn to identify uptrends, downtrends, and side trends on charts
Understand how to use support & resistance levels
Learn to use & understand exponential moving averages (EMA's)
Learn to use & understand relative strength index (RSI)
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