Understanding Charts

Golden and Death Crosses

What is a Golden Cross? The Golden Cross chart pattern is a bullish technical setup. This pattern is relatively simplistic and easy to recognize but carries the power to indicate a major potential rally. The … read more Golden and Death Crosses

The Basics of Reading Wanderer’s Charts

The Basics of Understanding a Wanderer Chart The first time anyone glances at a stock’s chart their eyes glaze over. It’s a lot of information packed into a small package. And for many, the information … read more The Basics of Reading Wanderer’s Charts

Using the RSI

What is the Relative Strength Index? Do you want a technical definition, or do you just want to know how it can be useful? According to Investopedia, the relative strength index, (RSI) is a momentum … read more Using the RSI

Cup and Handle Chart Pattern

Definition The cup-and-handle chart pattern is a bullish technical setup. While there is some interpretation involved, it’s a nice pattern because of its simplicity, and its similarity to a straightforward breakout pattern. In the end, … read more Cup and Handle Chart Pattern

Stock Charting 9—Swing Highs and Lows

What is a Swing? No doubt by now you’ve heard us use the term “swing” as it relates to trading. Typically, we will mention that a stock or index printed a swing low, or we … read more Stock Charting 9—Swing Highs and Lows

Stock Charting 8—The 2B Indicator

The 2B is quite a simple indicator to spot, and indicates/confirms a price reversal is underway. A 2B is formed when a stock’s price approaches a previous high (low). The price exceeds the previous high … read more Stock Charting 8—The 2B Indicator

Stock Charting 7—Gaps

What is a Gap? A gap is simply an open space left on a chart between two candles, where no trading occurs in the middle. It is caused by a sharp move up or down … read more Stock Charting 7—Gaps

Stock Charting 6—Trendlines

Trendlines are an important, and easy way to see what a stock is doing, as well as where good entry and exit points might be. Like all indicators, trendlines give us another clue as to … read more Stock Charting 6—Trendlines

Stock Charting 5—Support and Resistance

Support and Resistance lines are such a basic part of traders lives that we sometimes forget new traders can, and do, struggle with drawing these on their charts. We look at a chart, draw it, … read more Stock Charting 5—Support and Resistance

Stock Charting 4—Understanding Candlesticks

Whether you are reading a book or scanning a stock chart, you first need to know the alphabet in order to understand the information that you are looking at. In the English language, we use … read more Stock Charting 4—Understanding Candlesticks