Technical Analysis Fundamentals: Reading Stock Charts

Learn the line, bar, and candlestick charts and how opening, high, low, and closing prices reveal a stock’s trading range, with colors signaling up or down days.

Explore candlestick charts and their open, high, low, and close with wicks; distinguish bullish and bearish candles by color, and compare line, bar, and candlestick views using ticker symbols.

Define uptrends and downtrends with higher highs, higher lows, lower highs, and lower lows; recognize sideways markets. Learn to draw trendlines to gauge trend strength and identify support and resistance.

Draw trendlines from the lowest low in uptrends and the highest high in downtrends, extend to test validity, using ideal highs/lows and 30–45 degree angles.

Draw trendlines on thinkorswim to capture trends using the lowest low and highest high, then apply ideal lows and highs to create meaningful lines and entry signals.

Learn to draw meaningful trend lines, identify uptrends and downtrends using higher highs and higher lows, adapt to long-term or short-term preferences, and confirm breakouts with other indicators.

Identify support and resistance as price barriers shaped by market sentiment, using the ball analogy, repeated touches, and evaluation of false vs ideal breakouts and price confirmation.

Identify support and resistance by spotting peaks and troughs near the current price, draw horizontal levels, and observe how volume influences strength for actionable chart reading.

Spot SNR levels on a daily chart by identifying highs and lows to draw support and resistance, using wick tips, and watching for breakouts, retracements, and high-volume moves.

Explore how support turns to resistance and vice versa, and how breakouts are validated or rejected using price action and volume. Real-world cues from Intel illustrate false breakouts and confirmation rules.

Price is the key confirmation signal; wait for a close above the level to confirm. Treat support and resistance as sentiment-based levels, using price action and volume to validate breakouts.

Identify moving averages as a trend-following indicator that smooths price action using a chosen period, including exponential averages; learn bullish/bearish crossovers and near-average entries for strategy design.

Use moving averages in pairs and triples (15, 50, 150) to generate signals, time entries near the moving average, and assess slope with support and resistance.

Utilize moving averages to gauge trend direction; guard against lag and false signals in non-trending markets, and compare short-term and long-term options like simple versus exponential averages and crossovers.

Learn how leading indicators like RSI and stochastic measure momentum and price action, read crossovers and divergences, and combine signals while acknowledging their limits.

Explore the relative strength index (rsi), a 14‑period momentum oscillator from 0 to 100 with overbought above 70 and oversold below 30. Use failure swings and divergences for trend-aware entries.

Analyze lagging indicators like MACD, its two lines, and centerline crossovers to identify bullish or bearish signals and monitor divergences with momentum and price action.

Explore OBV, which tracks the running volume by adding or subtracting daily volume with price moves, and ATR, which measures daily volatility over 14 periods, for informed trade confirmations.

Put together a trend-following strategy by using market, limit, and stop orders on stock charts, compare short-term and long-term timeframes, and prioritize simple signals with strong risk-reward.

Learn to set risk-reward ratios of 1.5:1 to 2:1, define target and stop losses, and apply a simple trend-following strategy using SMA crossovers, RSI, MACD, and ATR.

Back test a stock strategy on Starbucks using 25-, 50-, and 200-day moving averages with MACD, RSI, and ATR to set buy, stop, and two-to-one target levels.

Observe buying and selling signals using MACD, RSI, and moving averages; set entry, define support and ATR-based stop loss, target price, and trailing stop within a trend-following approach.

Observe Starbucks stock through moving-average crossovers, bullish and bearish signals, ATR-based stop losses, targets, and a 200-day moving average acting as resistance.

Assess eight trades from a trend-following strategy, noting profits, losses, and risk management across timeframes.

Improve your strategy by entering only when moving averages align bullishly (25 above 50 above 200), using ATR trailing stops and 1:1 breakeven adjustments, and diversifying indicators for clearer signals.

Master risk management to succeed in trading, as market unpredictability and emotional factors drive errors; invest only money you can afford to lose and maintain an emergency fund.