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Don't be blindsided by something you should have known. Yes, even while you're learning to trade.
 
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Chart Checklist
Don't be blindsided by something you should have known.

stock trading
Looking For Long Stock Charts The more you have checked off,  the more
favorable the odds are. Of course, you can
add as much as you want to things you
would want to watch. This is a guideline.
Why is this important?

What is the Trend?
Trend is the only true friend you have in the market.

 

Uptrend, i.e., higher highs and higher  lows?
Are the 20 & 50 day Mov Avg both rising?
Is the 20MA above the 50MA?
Trend shows interest.  Pull up charts on the S&P-500 (SPX), the sector chart of the stock you're interested in and the stock chart all at the same time. Are they all going in the same up trend?

What are the Indicators telling you?

Is the Stochastic low & crossing upward, at or above 20?
Is the MACD low but rising, crossing above "0"
Is price hitting the upper or lower Bollinger band?
Are stop & reversal points (SAR) being hit?
Is the RSI crossing?
Is the Advance Decline line rising?
Is there an indicator divergence? 
Use the indicators to confirm the current trend. 

Add as many indicators as you want but be consistent in your usage of them.  Use the same settings for at least 60 to 90 days before deciding they must be changed.

Where is the Price? Is the price above a flat or rising 200-Day MA?
Is the price above a rising 50-day MA?
Is the price is above a rising 20-day MA?
Shows strength and increasing strength of the trend.
What is the chart Pattern?
Waaaaaay too important to be wrong here.
Is there a reversal or continuation pattern formed, i.e., ascending triangle, head & shoulders, cup & handle, etc.?
Is there a formed or forming setup like a long base or long pullback?
The presence of a bullish chart pattern adds to the odds of a renewed move to the upside.
What is the Volume telling you? Are the volume characteristics increasing on rallies and decreasing on pullbacks?
Is there evidence that traders are in the grip of fear, possibly signaling volume capitulation?
Volume is the sentiment of the traders in that stock.  When volume increases on rallies and breakouts, the dominant sentiment is usually bullish.
What is the appropriate ACTION in this trend?   Is there a SETUP?
Is this a bullish pullback setup?
A continuation or reversal pattern setup?
Differentiate, if possible, the candlestick reversal pattern from the longer term, more powerful continuation or reversal pattern.
stock trading You will still need a coach to sort it out. stock trading
Looking For Short Stock Charts Put the odds in your favor. Why is this important?

What is the Trend?

In a downtrend, i.e., lower highs and lower lows?
Are the 20 and 50 day Moving Averages both falling?
Is the 20MA below the 50MA?
Trend shows interest. Pull up charts on the S&P-500 (SPX), the sector chart of the stock you're interested in and the stock chart all at the same time.  Are they all going in the same down trend?
What are the Indicators telling you? Is the Stochastic high and crossing downward, near or towards 80?
MACD high but falling, crossing below "0"
Is price action hitting the upper or lower Bollinger band?
Are stop & reversal points (SAR) being hit?
Is the RSI crossing?
Is the Advance Decline line falling?
Is there an indicator divergence?  
Use the indicators to confirm the current trend.   

Add as many indicators as you want but be consistent in your usage of them.  Use the same settings for at least 60 to 90 days before deciding they must be changed.

Where is the Price? Is the price below a flat or falling 200-Day MA?
Is the price below a falling 50-day MA?
Is the price is below a falling 20-day MA?
Shows strength and increasing strength of the trend.
What is the chart Pattern? Is there a reversal or continuation pattern formed, i.e., descending triangle, head & shoulders, flag, etc.?
Is there a formed or forming setup like a short base or short rally?
The presence of a bearish chart pattern adds to the odds of a renewed move to the downside
What is the Volume telling you? Are the volume characteristics decreasing on rallies and increasing on pullbacks?
Is there evidence that traders are in the grip of greed, possibly signaling volume capitulation?
Volume is sentiment of traders in that stock.  When volume increases on breakdowns, the dominant sentiment is usually bearish.
What is the appropriate ACTION in this trend?

Is there a SETUP?
A continuation or reversal pattern setup?
A bearish rally short setup?

Differentiate, if possible, the candlestick reversal pattern from the longer term, more powerful continuation or reversal pattern.
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