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Technical analysis basics

  • Trend
  • Support/Resistance
  • Long versus short selling
  • Support/resistance property
  • Candlesticks basics
  • Consolidation
  • How charts progress
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  • Day & swing trading
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  • Reversal strategy
  • Loss/profits ratio
  • Volume
  • Gaps
  • Support-resistance power criteria
  • Charts are fractals
  • The 4 basic questions
  • Placement of stop orders
  • Determination of profits target
  • Risk management rules
  • Exchange traded fund (ETF)
  • Effect of market on stock prices
  • Day & swing trading algorithms
  • Set up of a breakout trade
  • Set up of a reversal trade
  • High probability trading set ups
  • Stock screeners
  • Ascending-descending-symmetrical triangles
  • Head & shoulders pattern
  • Cup and handle pattern
  • Ascending & descending channels
  • Moving averages
  • Oscillators
  • Negative & positive divergence
  • Relative strength index (RSI)
  • Bollinger bands

Charts are fractals

Fractals in mathematics and physics are structures that look alike in every scale. A snowflake is a hexagon. This hexagon is consisted of little hexagons, so if we look through a microscope we will see the same thing as looking with our naked eyes.

Price charts are like fractals because they look almost alike in every time frame (5 minutes, half hour, daily etc.). Every pattern someone can see in a half hour chart can be seen in a daily chart also.  Support, resistance, trend, breakouts, reversals and other formations are applied in every time frame. The properties of every formation are amplified as the time frame becomes bigger. A support in a daily chart is more powerful than in a 5 minutes chart. If price makes a reversal in a daily support it can be counted in dollars, whereas in a 5 minutes chart it can be counted, most of the times, in cents. Also we can have a breakout or a reversal in a 1 hour chart and simultaneously having a breakout or a reversal in the 15 minutes chart or in the 5 minutes chart. 

Breakout in JCP 5 minutes chart

 

Breakout in JCP daily chart

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Recent posts

  • Possible breakdown in Greek stock exchange
  • Application of a simple strategy in EUR/USD
  • S&P 500 runs out of fuel
  • Short term downtrend in Greek stock exchange
  • Possible upward movement in S&P 500

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  • Day/swing trades
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  • Trading signals
  • Trading strategies

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