Technical Analysis Made Simple - Introduction to Stock Charts and Technical Analysis | James Nguyen | Skillshare

Technical Analysis Made Simple - Introduction to Stock Charts and Technical Analysis

James Nguyen, Professional Money and Lifestyle Manager

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10 Lessons (45m)
    • 1. Introduction to the Class (and the Series)

      5:06
    • 2. What is a Stock and What are Stock Charts?

      3:32
    • 3. Fundamental vs. Technical Analysis

      3:40
    • 4. Why Technical Analysis Matters More Today

      4:53
    • 5. The Secrets of Trading Mentality

      3:56
    • 6. Where to Find Stock Charts

      4:32
    • 7. The Basics of Line and Bar Charts

      4:20
    • 8. Candlestick Charts for Beginners

      4:56
    • 9. Into the Wild: Live Stock Chart User Walktrhough

      4:51
    • 10. The Power of the Stacking System

      4:45
65 students are watching this class

About This Class

Which stocks or cryptocurrency should I buy? When exactly should I buy or sell?

What is technical analysis and where can I learn it?

Imagine looking at a stock chart and knowing exactly if you want to buy or sell. 

Picture yourself having more winning trades and knowing how to manage your risk and cut your losses when you’re wrong.

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This class will teach you the essentials of technical analysis and stock trading to help you make smart, profitable investing decisions. You’ll focus on the most important technical indicators and put it all together into a process that I actually use as a professional hedge fund manager. 

This class is the first in a series built around my Stacking System, a step-by-step process to analyze any price chart using simple, classic technical analysis.

If you can follow a recipe, you can learn my system. Technical analysis will give you an edge in trading, day trading and investing in anything from stocks and penny stocks to Bitcoin and cryptocurrency.

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I'm James and I've been a professional trader and hedge fund manager for over 20 years, trading billions of dollars. I'm active on Twitter using @marketmind3 and on my website marketmindtrading.com. I post trading and market analysis live, where I can't hide and fake my results.

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This class will cover the basics and be an introduction to trading, technical analysis and my Stacking System.

  • Lesson #1: Introduction to the Class (and the Series)
  • Lesson #2: What is a Stock and What are Stock Charts?
  • Lesson #3: Fundamental vs. Technical Analysis
  • Lesson #4: Why Technical Analysis Matters More than ever before
  • Lesson #5: The Secrets of Trading Mentality
  • Lesson #6: Where to Find Stock Charts
  • Lesson #5: The Basics of Line and Bar Charts
  • Lesson #7: Candlestick Charts for Beginners
  • Lesson #8: Into the Wild: Live stock chart user walkthrough
  • Bonus: The Power of the Stacking System

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Understanding technical analysis will change the way you trade and give you control and confidence over your investments. My course will transform you from a “close-your-eyes-and-hope” beginner to a smart, consistent trader. If you want to learn how to read a stock chart, understand technical analysis and trade with confidence, you’re in the right place.

Transcripts

1. Introduction to the Class (and the Series): anyone can learn to trade, even if you're a beginner. Imagine looking at this chart and understanding what all these crazy lines mean and knowing exactly. If you want to buy or sell and then imagine being right and making money on this trade, what could you do if you had this skill? This course will teach anyone how to analyze stock charts, even if you're a complete beginner. By the end, you'll know the best trading tools and technical analysis strategies that expert traders used to make money annular, step by step trading process that many pros don't even know more people are lurk, trying to learn to trade than ever before. There's new investors entering the market with new ways to trade and new emerging industries to put their money into. But where can they learn? They're all asking the same questions over and over. When should I buy? Should I sell here? What stocks or cryptocurrencies should I trade? What is technical analysis? When I look around, I see new traders getting bad advice from social media groups, Twitter and the Internet. I see people trying to sell courses and videos and trading systems that are outdated or complicated odors plain boring or inauthentic. Hi, I'm James. I teach people how to read stock charts and trade with confidence. I have 20 years of experience as a hedge fund manager. I've been in front of the screens for decades, trading billions of dollars, and I believe anyone can learn to understand technical analysis. I'm not a paper creator who learned from a textbook I trade riel capital and post live trading and market analysis on my Twitter and Website market mind trading dot com, where I can't hide or fake my results. You're in the right place if you want to learn to make more money trading, or you want to make better investing decisions, or you want to understand how to analyze stock E T. F or Cryptocurrency price charts. Like professional traders, this course is really for everyone, from beginners to experience traders. My teaching style is end to end and step by step. I won't bore you with a bunch of definitions and theory. I'll actually show you how to trade with visual aids and live video walk throughs. I'll go in depth into the story behind everything, not just what is happening but why and all along the way you'll look over my shoulder as I talk through how I apply my concepts in practice, we're gonna go beyond just reading a chart will actually apply technical analysis to trades . I teach a step by step system to analyse stocks and make buy and sell decisions. And I believe you learn trading by experience and by actually trading yourself. So I try to do as much as I can with live video walk throughs. And most importantly, you don't have to be a finance. Were there a math genius? If you can follow a recipe, you can learn my process. My process is all about simplicity. My motto is to keep it simple. I use really simple, basic classic trading tools like support and resistance and basic technical indicators, and apply it all together in one system. I call it my stacking System. It's a step by step process for analyzing a stock chart and making a buy or sell decision will go through the three C's, looking for a catalyst Ah, chart pattern and confirmation from technical indicators, and I'm gonna walk you through all of this stuff. It's all basic. It's all very simple. It's the combination of everything that makes its really powerful, and once you learn my process, you can apply to any market. Technical analysis measures price action in psychology on mo mentum and trends so you can apply it to anything that's traded, whether it's stocks of any kind, whether it's large cap stocks or penny stocks, E T ETFs, commodities or even crypto currencies. Learning technical analysis and trading can change your life. You'll make more money trading. You'll increase profits from investments you're already making. You'll understand why chart is telling you so you can stop guessing when you're buying or selling, and you'll use long term strategies so you don't have to stare and stress of your trades every minute. I've designed my course to be a series of classes will devote a whole class toe one aspect of my stacking system that will lead us to dive deep into the most important concepts of technical analysis. Concepts like trendline support, the resistance chart patterns and technical indicators at the end will put it all together with full live walk throughs of all my training concepts in practice. But we're going to start at the beginning with an introduction to stock charts and technical analysis. The class you're watching right now here, we're gonna go over the basics. What is a stock? What is the difference between fundamental and technical analysis and why technical analysis matters mawr today than ever before. And then we'll get into the secrets of trading mentality and where to find stock charts and the basics of line bar charts and Candlestick charts. And finally, we'll talk about the power of my stacking system with an overview that will help guide all the classes later on. So if you're ready to learn about stock charts and technical analysis and how to use them in making better trading and investing decisions, you're in the right place right now and let's begin. 2. What is a Stock and What are Stock Charts?: Okay, So before we talk about trading, let's get really basic, all right? And let's talk about what exactly are stocks? Because it'll it'll help us kind of think about trading eso. A lot of you will know what stocks are kind of conceptually write you. A lot of people would be like, Well, I know people trade stocks and I know the prices can go up and down and I can make or lose money. But let's think about what are stocks? Exactly? Ah, so basically, a stock is literally owning a piece of a company. Ah, lot of people forget that, right? So a share of a company is kind of what you're owning. That's why they call it, You know, I own 10,000 shares of Apple, right? You literally own a share of the company. So in other words, you own a share of the company's sales earnings, whatever the company does. Eso What is that share of a company worth right? Because it has a certain value. Um, you know, that company sells phones or clothes or food or software or makes money somehow, right? Um and so because it makes money or does something each share of that company is worth something. Ah, in a publicly traded company. That's what stocks are. They trade on the market. Ah, that share is traded by people who kind of give that share a certain value because it's traded on ah on active market. That value changes on a minute by minute basis on its based on just what people are willing to buy or sell for that share, that piece of stock that share you own. If you own a share of a company, it's worth something. And there's always Yumi buyers and sellers of that stock and basically, to put it simply when there are more buyers than sellers. In other words, when the demand for that stock is higher than the supply, the price goes up right. If more people want it, Ah, they are willing to pay more for it, So why would they be willing to pay more for it? Well, I mean, the value of a company changes all the time, right? Sometimes a company will come out with a new product. Sometimes they'll have better than expected revenue or earnings, or they'll make more money, sometimes have a new management team. There's so many reasons why, Ah, the perceived value, the value that someone is willing to pay for it will change. And that constant changes what trading is really all about. So a lot of people say, Well, why should I learned stock charts and trading at all right? Should I just buy great companies and hold them? Ah, and that's definitely Ah, great strategy. Ah, and it's something I use all the time as well. I a lot of my investments are just investments I just believe in and hold for a long time. But learning stock charts in trading not only add to that investment process but are a skill in it up himself. A stock chart simply tracks the changes in the prices of a stock, so understanding those changes and how to read a stock chart makes any investor better. Rumor. Stock prices don't go straight up and down, right? It's all about the supply and demand for a stock. Eso trading is all about analyzing how stock price moves and what that story is telling you . Eso you can see really just understanding stock charts and trading is just a valuable skill by itself. obviously, and that's what we'll talk about. It is how to make money, actually trading. But it also adds toe any investing process by just giving you that extra edge and that extra understanding of what a stock price is telling you about about a company, whether you're a long term investor or a short term trader. 3. Fundamental vs. Technical Analysis: Let's talk about the difference between technical and fundamental analysis. Basically, fundamental analysis is what most people think about when they talk about investing in and buying and selling stocks. Ah, and fundamental analysis. I'll admit, in my view, is the key to most winning stock picks over the long term. Ah, basically fundamental analysis is the analysis of the company's products management team is industry. Ah, and you know, basically the company how much sales it's making, how much money they're making their growth prospects, right? So when someone says, Well, I want to invest in Apple because I think the iPhone is great or I wanted by Disney stock because I love those Avengers movies and I think it's gonna make a lot of money. Ah, that's fundamental analysis. Ah, and that's what dim average person does when they're when they're buying a stock. Professional investors at big hedge funds and mutual funds will kind of do the same thing, though I mean, it will be at a different level that right so they'll say things like, Well, I met with Apple's VP of product development and he gave me this great road map or I have these contacts in Asia. Ah, at semiconductor foundries and it looks like they're book to Bill or some blah, blah, blah. Stat is better than most people think. Eso have all these kind of in depth analysis that they'll do, but it's still fundamental analysis, and it's basically still the same idea, right? You're analyzing and just, you know, kind of making a judgment on a company. Ah, and fundamental analysis really is the core of long term investing. Ah, and so that part is most people have, right? Right? So if you buy stocks in great companies, generally the stock price over time will go up. And that's what fundamental analysis is if fundamental analysis is the analysis of the company. Meanwhile, technical analysis is the analysis of the stock price. Ah, and there's sometimes a big difference. Technical announces, basically adds an extra layer to analyzing a stock. You're not just looking at the company and the fundamentals, but you're actually looking at the stock. And there's often a difference between what a stock price is doing and what the fundamentals of the company are. Ah, stocks do often move for fundamental reasons, but Cyprus is don't always reflect fundamentals, especially in the short term. Prices are driven by short term events, all the time and market movements, and a lot of these have no relation to the fundamentals of a company. So I mean, if you think about it, does the main investment case for any stock. You know the main reason you're investing the stock. Your long term, fundamental thesis doesn't really change every single day and every single second. Probably not, but obviously the stock price definitely does. I mean, stock prices move daily based on all sorts of things. Sometimes it's just the overall positioning of the stock. Are is everyone long? It is Everyone you know crowded into it. It moves on just overall sentiment, and these days it trades a lot on just robots. Trading on. By that, I mean just black box programs and algorithms that these big hedge funds and be these big ah investment firms just have automated to trade. And that's my general view that fundamentals and technicals matter. And in many ways, technicals matter more so today than ever before, and obviously, traders. Because of that, both traders and long term investors need to pay attention to both 4. Why Technical Analysis Matters More Today: a lot of like old school investors will say that Onley fundamentals matter, right? You just buy and hold. Um, and stocks will just go up over the long term. But I think that's kind of like a tired, outdated business school. Wanna one? Ah, and Financial Advisor script. Think about it. Many investors have been doing things the same way for decades, using the same kind of playbook, the same kind of fundamental analysis and the same viewpoint. But think about it. Is the market different than it was? I mean, is the world different than it was 10 2030 years ago? Obviously, yes. Yet a lot of the big investment funds are using the same process that they were years ago. And a lot of the teachers of trading courses and trading are teaching kind of the same philosophies. But the world's really different, right? I mean, think about the 20 years ago. 30 years ago, we didn't have the Internet. We didn't have smartphones. We certainly didn't have some of the modern ways that the markets are being traded, like our automated artificial intelligence trading, algorithmic, trading and the evolution of information and research, and how it flows and just the overall availability of technical analysis tools that are available today. Technical analysis has always been based on the idea that the market is efficient at digesting information. The stock price, with all the buyers and sellers battling it out to find value based on their individual knowledge and opinions, reflects the true value of the stock on with all the advances in communication and computing. Ah, and trading that I've talked about markets arm or efficient than ever. I mean, do you really think you know more than the collective knowledge of thousands of other investors and traders about a company? Does anyone really have any information edge? I know a few investors in Tesla and their investors because they're Tesla owners and they love their cars, and they definitely have more information than the average person. They're talking to their dealers. They're talking to other owners that are on forums. They're keeping up with the news. They really have a lot of information, baby. Though they may feel like they have have an advantage over most investors, their information just really pales in comparison to what ah big investment firm or hedge fund would know about a company like Tesla. Ah, I mean, there's billions of dollars at stake on these firms have just armies of analysts and accountants doing every possible check on the channel suppliers doing work on the accounting and the capital structure of the company. They really just leave no stone on turn and try to get as much information as they can. But even with all that information, even the big firms don't really have an edge anymore because they all have. It is the same information. Um, you know they're doing the same work and with the way information flow, it's so instantaneous these days it's immediately known by everyone. So in a world where there is no riel edge and information, price action is king. Stock charts, stock price action matters. So my view is that the market prices in and always has most known information, but it's doing so better than ever before. Ah, stock prices don't always reflect fundamentals. They move on just overall buyers and sellers sentiment, and they're really just this mishmash of past performance, current information and future expectations, and you'll see this all the time. Recently, Disney stock rallied up into the release of its Avengers and Game movie. The movie actually ended up doing better than people expected that. But the stock price sold off. Why didn't do that? Because the market already knows, right? The market priced it all in. Ah, and it's doing so Mawr and Mawr. So a lot of technical traders will argue that fundamentals don't even matter at all, and that the market prices in everything and that stock charts and technicals say everything. And that's the only thing we need to look at. I don't go that far. I really believe that technicals and fundamentals both matter. Ah, but I primarily used technical announce because I think technical analysis and price action adds to any process you have. Whether you're trading or long term investors, it gives you better entry points and exit points where you can take profits. It often confirms your fundamental analysis Ah, and helps you protect your profits on those long term fundamental investments and also gives you warning signs when the price action doesn't quite match the fundamentals and couldn't cause you to kind of re think and re evaluate your fundamentals thesis. But whether you're trading or investing for the long term stock price charts always tell a story, and understanding that story can often lead to better trades, making money with trades and better long term investments. 5. The Secrets of Trading Mentality: So before I go too far, I need to make the obvious disclaimer on. And it's not just for legal reasons, trading is all about psychology and process, so you really need to get your mentality correct before you start. So obviously, there are no guarantees when your trading, um, the market is literally designed to take your money. Ah, it's efficient, there's information flow and you're at a disadvantage. Ah, and also trading is not some get rich quick method to make money. No trading system works every time you'll see them advertised all the time. But the reality is the market is hard. That's why there's so many professional traders, professional money managers and investment firms that lose money that or that underperformed the market. So you just have to get that mentality right? As you begin to trade, you're not gonna make money on every trade. You just have to accept that, and you have to accept that the markets hard. It's gonna try to punish as many people as it can. So how do we fix that? Or how do we How do we address that? Ah, one is We get our expectations right, and we get our process right. We we try to be disciplined. We focus on being disciplined and we focus on consistency. Um, you also don't want to jump around from guru to grew or or chase too many trading systems. Ah, in in the Internet these days, you will find, ah, trading systems and people telling all these processes and ways to make money. Ah, and some of them will work. They'll have great track records. But just like any trading system, nothing's gonna work all the time. And so what you don't want to do is jump from one guy to the next every time someone gets hot, because that's just a recipe for losing money. What you really want to do is just focus on your own process, focused on something that's intuitive to you and focus on the simplicity, especially at the beginning, as you begin trading and learning to trade. Ah, and even as you've gotta get experienced ah, you just have to get your expectations right. Even the best traders really Onley have barely of 50% hit rate on. That's all you really need. As long as you're processes right and your discipline is right and you also have to realize that practice and experience are critical. That's what makes the difference over the long run. You can learn how to throw a football, but not everyone's gonna be Tom Brady. Um, and you can learn a recipe, but you're not necessarily going to be a five star chef. Just realize that some there's some people have a unique talent and the best definitely have practice and experience. So just realize that as you're kind of like going along, you know, as your kind of learning all this. But you don't have to be the best in the world to make money trading. If you play the long game and just focus on high probability trades and processes like my stacking system, you'll improve your percentages over time. That's what my stacking system and process is really designed to do. Help you improve your probabilities over time and help you just make better trading and investing decisions using stock charts and technical analysis. Ah, it does that in a few ways. One. It's a trend following system s, so we're not gonna try to anticipate and and be smarter than the market. We're gonna let the market, tell us what to do and just go with the trend over time. That's just a safer way. Ah, less risky way to trade. The other thing that it does is it stacks multiple signals from trends, chart patterns and technical indicators. Simple tools that, when used together, confirm each other. All agree with each other and at a higher probability trades. And when you combine simple basic tools, you produce strong, confident signals, signals that could be used to make money and make better investing decisions. 6. Where to Find Stock Charts: So we've established why stock charts air so important, especially these days. Ah, and remember, just in summary, basically stock charge, Tell a story. So if you're an investor or a trader, understanding stock charts help you understand the story better. Ah, and actually helps you make trading and investing decisions. Ah, but first W who have never even looked at stock charts that never incorporated that into your investing process or your training process. Ah, you might wonder where you start well, basically, stock charts you confined everywhere on most of you know this. Ah, but there's a bunch of different services. I highlighted a few here. Um, trading view dot com is the one that I actually recommend. You can get a free or a paid version. Ah, stock charts dot com is also a similar one. Ah, you can also get a free paid. I actually have Bloomberg, but that's because I'm a professional. That's that's very expensive, and it's really only for professionals. Probably. Your own brokerage account also has the ability to pull up stock charts and do some technical analysis. Ah, but basic. There's a couple things you want to look for, but with any stock car service. You really want to make sure there's a wide variety of customization choices. Um, as you go through my process and how I look at charts and draw trend lines and add technical indicators, you're gonna want to make sure you have your service has the ability to add studies and technical indicators. Ah, and the ability to draw these trend lines to kind of use my process. I also always look for the ability to keep a watch list, right, Because they're you know, as you're watching all these stocks, not everyone will be something you want to buy or sell immediately. But you wanna have that constantly, Uh, you want to have the ability to constantly watch these and be reminded of these stocks that you were watching a pass and maybe weren't quite ready yet. But you can have an easy way to kind of flip through on a daily or weekly basis on reevaluate the charts as you go along. Like I said, I recommend trading view dot com for, especially for beginners. It pretty much has all the ah, the features you would want. I'm gonna do a quick walk through right now just to kind of show you what you want to look for. Ah, and why? Um, you know, trading view particularly, has a lot of the futures that that I think are useful. So just to give you example, this is trading view trading view dot com. This is, ah, one of sites that I recommend for stock charts. Um, I'll give you a quick kind of run down of what? The things that I would look for. So you go to the site, you can type your ticker in right here. Let's try Apple. Ah, gives you a basic chart. Um, and you can do this full feature chart right here, right? Ah, and it kind of gives you everything. Now, I have a template already loaded up here, but, ah, you know, what you'll see is, um, you have a bunch of options up here. Indicators on this will get into this later. But as all these technical indicators you want has all these moving averages you want, um, there's just a lot of options, right? And so that's what you kind of look for and the ability to save templates of you have certain. Ah, indicators you look for. Here's my kind of my standard indicator list. Ah, have saved as a template. So it'll pull up right away. Ah, you know, you want the ability to draw trend lines. So here I can draw trendline here, you can draw a horizontal trend lines eso you haven't ability to do all sorts of stuff. And that's kind of what you're looking for. Um ah. I also have a watch list over here. You look, you know, I can easily just apply. Ah, you know, just go through my watch list really quickly, and it saves any lines. You draw SOS here. I drew this trend line. Ah, here I do this trend line, and so that's important because you're gonna want to track how things trade around these trend lines that you're going to be drawing eso again. That's just kind of a quick overview. I used trading view. There's a free option and a paid option. The paid option. It comes in different tiers, so ah, you can kind of step up slowly if you want. But honestly, the free option is pretty good as well. It just limits you on certain things like the number of indicators you can use, but for a beginner, it's It's pretty good, eh? So that's the one I would recommend. Um, for for beginner certainly. 7. The Basics of Line and Bar Charts: So now it's time to finally dive into actually reading stock charts on we're gonna Start with the basics. The first step is to basically just get familiar with the types of stock charts that are out there. Um, just f y I There's a lot of, ah, but fortunately ah, there really are only a few that are commonly used, and there's only a few that I actually use and would recommend using. Ah, the 1st 1 is a line chart, and this is pretty much the most basic chart there's out there. Ah, if you kind of look here's ah line chart for Amazon and a lot of times you just pull up, um, a stock chart, app or website. This is kind of the standard chart that they'll give you. Basically, the line marked the closing price for each time period, So if this is mostly time, it will give you a daily chart. So if this is a daily chart, there's you just put a point on the closing price for the day, and then you just kind of collect connect all the points, and that would give you your chart. It is was a five minute chart, it would be every five minutes. You have put a point, and so this would be tracking every five minutes. But again, this is a daily chart you can kind of see. Basically, what gives you a sense for how the price has been moving over some time, period? Um, so obviously, it's a simple chart. Ah, and that's kind of a pro, writes a clean, simple view of just how prices moving. Ah, it's also really useful when you're comparing the performance of many charts on, uh, many stocks on the same chart. That's something that you might do when you get a little more advances, put a bunch of charts and kind of tracked them together. This just makes it cleaner. Ah, as we get used as you'll see with other charts, they there's a lot more data. Ah, but again, that's also the con right? So in this case, there's just less information. Doesn't show you a lot of insight into how stocks traded over the course of a day or oh, how much volatility areas right doesn't show the what where the open was, where the highs and lows for each trading period but It's simple, and actually, I still use it sometimes for for for for some purposes, which we'll talk about later. Ah, the next chart is a bar chart, so ah, each it's similar to the toe a line chart. Except instead of just marking the closing price, it actually gives you the high, the low for the day and the clothes right, And it's normally color coded to kind of show you whether the day was up or down day. Whether stock low, you know, was was up for the day or down for the day. Ah, and even with bar charts, there's different types there, some that show the high, low and close the show. There's some that show the open, the high, low in the clothes. So one thing you'll notice is so I This is both for Amazon that the line chart and the spark shot I gave you what it was both for Amazon, and you can see the general trend is the same, right? You had the peaks of the same places, and you kind of still, the general shape is the same, and you kind of get a sense for how price has been moving. It's just that this bar chart gives you mawr information, right, especially as you learn to read it. You'll you'll you'll have a better sense for kind of what is actually going on. If we zoom in one of the bars, you can kind of see how what it actually looks. Close up, right? So a green bar, a bullish bar. Ah, you know, you have a little hash for where the Open was. Yet the hash for where the closes and then the length of the bar represents the highs and the lows. Right? And so if it ah, you know, if the the Open where the clothes was lower than the open it's a red bar for its close was higher than the open. It's it's a green bar, so it gives you more information, right? It gives you the range of the day's trading. It tells you whether the stock closed near ties or its lows or or what are kind of what the price action for that day look like. So you know, it is just one of those charts that is a little more advances. Shields still goes to give you the same information as a line chart. Ah, but it gives you, um just a better sense for just kind of like the higher you know, whether trading period, just visually, instantly you can see whether a training period closed higher or lower. You can kind of see the length of the bar, which shows you volatilities over the course of the day, which is a lot of times that's useful. 8. Candlestick Charts for Beginners: the next kind of charges the Candlestick chart. This is actually a really commonly you start. It's actually the chart that I use the most. Um, if basically it's very similar to a bar chart, you can kind of see the color coded and it shows you big rangers Ah, for a day. Ah, the basic idea of a candlestick is Ah, it's each Each kind of period is marked with ah, candlestick with a wick. The, uh, in the main body, right, Just like a candle. Ah, and it also just like a bar chart shows you'd open the clothes and the range of of how the stock traded during a certain time period, the highs and lows and it's color coded again. If we zoom in on one of these candlesticks, um, you can kind of see it basically shows the same information as a bar in a bar chart just in a different way. Um, you know, you can you know if if a green bar marks Ah, a day where the clothes was higher than the the open. Ah, a red bar closes lower than the open. Ah, and so it again, it's gives you the range with marked by the ah, the the kind of like Wicks and the body shows kind of the range of ah, of the open the close. Um, the Catholic analysis that had is that it has its own art and its own following. Right? Um, each individual candle tells a story. So ah, where's, you know, line charts and bar charts tell gives you a lot of information. There's a lot of people who focus solely on just candlestick patterns and shapes to kind of ah to kind of read into what price accident price action is and and kind of getting inside it. So that toe how stock trades, um, I use this is kind of like a basic list of some of the things people look at. I'm not going to get into it right here. But just that the take away is that people will trade off of just that because it does kind of give you ah, you know, tell each little candles that combination. And each candlestick tells a little story, um, again, the pose of candlesticks and bars. To be honest, it gives you opens highs and lows and closed the price. I think for me personally, candlesticks are just easier to visualize. You can kind of see straight up where the where the up days and down days are and kind of the big ranges of the volatility. Um, And again, as you learn to read candlesticks Ah, you will kind of get ah, get in the habit of actually kind of getting insight into price action, actually trading off of some of these patterns. Um, you know, the con is that it is a little more complicated. Um, and it can be a little bit of information overload, but to be honest, it's not that much. You know, did the general shape is still the same. I just think it helps visually. Kind of See, um, you know, to kind of see what? No, you know all the information that the candlestick pattern could give. Ah, you. The other thing about both candlesticks and bar graphs is that it shows gap ups and gap downs. Um, and ah, you know so with a line chart, if you remember it, there, it just give you the closing price, right? So you don't really give it just and connected all the lines. It doesn't give you an insight into gap ups and gap downs. And and those are important. We'll talk about that later. When we talk about kind of like support and resistance get open gaps down. For those of you who have a little X, less experience with charts are basically kind of like where the open was created. Gap. Basically, um, you know, the if you kind of look here the open here, you know, the stock closed here, and then on the next morning's open, it jumped up in price. Now, normally, or, you know, in this case, it kind of can jump down in price. And normally that's some news that came out overnight. Ah, that that causes that, um, you know, like a company will report earnings and its better than expected. Normally, the report earnings after hours. Ah, and so people the next morning come in and revalue the company and the stock price jumps off. And there's really just a lot of other types of charts there. I I list a couple here, The point figure, the Ranko that Kagy Um, these are more obscure types of charts, and for the most part, people don't really follow them. Obviously, there are a lot of people that pretty much trade exclusively with ease. Uh, but it is stuff that's probably for some or advanced traders once you get the basics down, and that's really what I'm gonna focus on. The basics, the basics, stock charts. I'll focus on the candlesticks, but you can experiment and see which ones you're more comfortable with. Ah, the line to bar the candlestick. They're all kind of the basically the same, and they're interchangeable. And at the end of the day, the strategies of trading support and resistance and the patterns and technical indicators I use, Ah, they can be applied to any of these. 9. Into the Wild: Live Stock Chart User Walktrhough: rebel who has never looked at a stock chart before. Ah, let's do a quick walk through to kind of walk through. Ah, typical stock charting website or app Muslim will be similar. So if you're not using the one I use, you could probably figure it out. Hopefully again. This is trading view dot com. This is the main page. Ah, you can see it kind of gives you Ah bunch of ah kind of summary indices. Ah, and as well as it has a social media community where people post ideas. Um, but we're gonna jump right to the stock charts right here. If you go up to this bar right here, where you can type in your ticker Ah, if you already know the ticker, you can go in and type it in. Ah, but you know, if it's if it's, ah, stock that you know the company. But you don't know the ticker, you can actually normally just type in. Ah, start typing in the name of the company. Let's take Facebook, for example. Ah, I will give you all these suggestions. Um, obviously, for the most part, I trade us eso and most people are gonna trade us. Um, but, you know, it's so in this case, it's This is the maid ticker for Facebook. Its stock that trades on the NASDAQ. It's the U S. Flag ticker. FB ah, so would go ahead and choose that. Ah, and you'll see it'll give you kind of a basic price chart in a summary page for Facebook before our purposes were focusing on the stock charts and technical analysis. So we're gonna go to here where it says the full future chart where my cursor is, Um so, uh, again, we want to go. This is kind of the basic char, but ah, we want Charlie where we have all the features that we committed, Relate. And I'll give you this. Um, so this is kind of your recognizes as a candlestick chart? Ah, kind of a base candlestick chart You can see upon this menu appear gives you kind of all the ways you can kind of change what you're looking at. Ah, here. If you kind of click on this this candlestick icon, you can see all the different charts. Ah, that are possible. Ah, obviously it's some of the kind of more obscure ones. But again, we're going to focus on the simple ones. Ah, you can make it a bar chart if you like that. Ah, you can make it a line chart for simplicity right here. Ah, and also, you can change the timeframe. So right now Ah, it's a weekly chart. You know, we take change it to a candlestick again. This is kind of like during this week. This was the range, right? So it opened and closed for that week. We can change it to a daily chart, so each candle represents a day. Ah. You know, if your day traded, you can even go smaller than that, right? You know, this is a five minute chart. So this is kind of like how it traded really over the course of this day, each bar representing five minutes of time. Um, so you know, this is they give you all the possible Rangers. Let's go back to the daily chart here. Ah, and one of things you want you that's helpful to know is just how you can manipulate the chart and move around a chart. So, you know, in this case, if I just click anywhere on this chart in this white area and hold my left mouse but in and drag and just kind of move my mouse, you know, back and forth I can kind of move along in time, right? So ah, you know, again holding the left mouse button in dragging it. It will give me kind of different time frames similarly down here if you actually hold the left mouse button and again where the dates are so seem like where my cursor is down here. Ah, and I just kind of in this date range and hold the left mouse button and hold it and drag it. I can kind of like, you know, expand or compress just how long you know the time period that's on the screen. Eso again. You can kind of move up, down. You can kind of drag it back and forth. Ah, and you'll want to do that because sometimes you'll want a zoom in. Zoom out. Ah, and this is just an easy way to do that without kind of going up to the menu and changing the dates by hand. Ah, also, you know, obviously, when you're here in the full feature truck you can type whatever ticker you want. Um, you know, here, like in type Google Aiken type apple. Whatever. I'll give you me all these suggestions. Um, let's try. Let's just do Google. Ah, And again, I'll pull up the chart again. We can move it around also. You know, most services will let you create your own wash lists if you go where my cursor is Here, I have a bunch of watch lists you can create, you know, create new lists and have a bunch have a bunch of different washing This, uh, my own. And that's helpful, right? So as you're kind of zipping through charts, um, you can kind of, like, just click on the ah, the saved tickers you have that you're kind of watching on a regular basis. Ah, and that's pretty much it. So well, kind of like from here, go into ah, kind of the more advanced up. But this is the basics. Enough of just how to kind of look at a star chart and and kind of use a site like this 10. The Power of the Stacking System: The main idea about how I trade and about my process is to keep it simple. My process is all about simplicity. I use pretty basic stock charts and trends and very simple signals. I really believe a 10 year old can learn the basics of stock trading, and keeping it simple isn't just for the purposes of this course or to teach beginners is actually a strategy that I think will work trading in any market, no matter what your level is. Ah, and even for me, after years of doing this and managing a lot of money and trading professionally, this is actually primarily the process I actually use now. I know there's a lot of crazy analysis out there in a lot of different ways. People are reading stock charts and a lot of different systems people are using, and I'm sure a lot of people who use them consistently and really believe in them can make money from them. But my view is you don't really need to get that fancy, particularly Ah, if you're beginning, I kind of look at it like cooking a steak right? There's a lot of ways you can cook a steak. Ah, if you look around, there's all these people using all these fancy rubs and marinades and all these different fancy techniques. Ah, but you know, sometimes you'll even talk about five star chef. And even they'll say, you know, sometimes simple works best. Ah, lot of the best chefs in the world will just say, You know what? Ah, all you need to cook a good steak, a salt, pepper and heat. Ah, and that's that's what I am. I'm a salt, pepper and heat guy both in cooking my steaks and in How I trade stocks. So to start one of things about my system is that it's a trend of following system. Ah, and I really think this is the best overall trading philosophy for beginners. Ah, but as I said, it's also a core strategy that I used. Then I think a lot of experience traders should also use, um, you know, why trend following? Well, you know, a lot of people will try to call tops and bottoms and turning points and predict them on. That's great for the ego, but it's really an inconsistent way to trade in the long run, particularly if you're inexperienced. Um, you know, contrary and trading can make a lot of money a lot of times, but it does require that kind of experience with the market. Ah, and some added skill. Ah, and even then, a lot of the best traders, when they're trying to guess like that are often wrong. So instead, I focus on following trends or at least being early on trends, though not necessarily at the exact turning points. Ah, it's a safer way to trade. And over the long run, just cutting out that extra risk can add up over time and then yield better returns. I use a step by step stacking system for analyzing stock charts and making buy, sell and trading decisions. Ah, and the core of my stacking system are what I call the three C's looking for a catalyst, chart and confirmation. In other words, we're always going to start with some sort of catalysts for making a trade. We're gonna analyze the chart pattern, and we're gonna look for confirmation from technical indicators and other studies were going to do, and we're gonna walk step by step through all of this and learn all over this the three C's process is all about taking simple basic tools and ways to look at a stock chart and stacking them all together to give really good, confident trading signals. So if we pull up any stock chart like this one right here, we would go through the step by step process for analyzing this chart to see if there's a trade here. Well, first, look for a catalyst. Is there something in the price action or the way the stock price is acting? Ah, that gives us a reason to make a trade. Did it break some sort of trend? Did it hold or break through some sort of support or resistance? We're gonna talk about how we look at these levels and how we identify these levels on when we talk about catalysts we're gonna be looking for. And once we identify a catalyst will next look for a chart pattern. Ah, and again we'll go through the different chart patterns to common chart patterns and what they say about potential stock price action and finally will look for confirmation from technical indicators. Ah, lt to what technical indicators are and why they add color and detail into what a stock prices doing and can add confirmation to any buy or sell decisions we may want to make. We're basically going to use simple, basic classic tools that, on their own provides some insight, but when stacked together, provide really good trading signals. So this concludes the introduction to stock charts and technical analysis. The next class will be devoted to the catalyst part of my stacking system. More specifically, trendline support and resistance in my mind, the most important concept in all of technical analysis.