Charting Basics Videos
These videos cover some basic charting theories and techniques. I am just starting these and hope to complete about one to two per week until I feel that the basics have been covered. I hope to keep these fairly short and on topic though I can tend to wander and get off on tangents at times. Please bear with me.
Stock Chart Reading Basics #1 - What kind of chart to use?
Your choice of charts is important. This video explores the differences between semi-log and arithmetic scales in stock charts. What drives investors more? Percent gain or dollar gain? What is a chart? Is it just a record of prices or are there things hidden in a chart that relate to human behaviors and are therefore things that repeat based upon a fairly consistent human nature through the decades and centuries?
This first lesson is designed to get the viewer thinking about some of these things. |
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Stock Chart Reading Basics #2 - Trend Line Basics
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Drawing trend lines is pretty easy, but there are still rules that need to be kept in mind in order to avoid making potentially costly errors. That is not to say that a good trend line will always result in a good trade. Every trend line will eventually be broken. That is as close to a 100% guarantee one will find in the markets. But, it is better to have a reliable trend line get taken out by legitimate trend-changing action than having a series of faulty ones get taken out while the trend remains intact.
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Stock Chart Reading Basics #3 - Resistance and Support
One of the most interesting and enlightening facets of technical analysis is that of the relationship between resistance and support. This concept is taught here in a very clear 'horizontal' fashion but it applies to ascending and descending trend lines as well. These will be taken up a bit later because there are some subtle differences.
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Stock Chart Reading Basics #4 - Wedges
Wedges are a pattern that can really serve as a tell, particularly as they form when levels are reaching support and resistance levels. They are almost like watching a quarterback who keeps shaking his throwing hand or a boxer who drops his hands and takes a few deep breaths. They are a sign that a particular movement is reaching exhaustion or weakness.
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