Beginners: Swing Trading Basics
The key to the basics of swing trading is understanding how the market and stocks move. One of those ways is to follow recognizable patterns that occur over and over.- How to Identify Market Movements
- Why Trade Trending Stocks
- How to Draw Trendlines
- When does the Trend Change
One of the tools we can use in assessing trend is moving averages
The most basic concept in reading a price chart is support and resistance and how these "self fulfilling" price levels can offer low risk entry points.
The importance of understanding why a stock may move has to do with the volume and who might be responsible for that interested "buying" or "selling"
By Far the most important aspect of the price chart is the price action. Understanding price action is very important when it comes to understanding the point of entry.
- Candlestick Charts
- Common Bullish Candlestick Reversal Patterns
- Common Bearish Candlestick Reversal Patterns
- How to read a doji candlestick
Some traders think that indicators offer some insight that price won't tell them, and offers them an "inside advantage" that's not true! Indicators are helpful in confirming a pattern, but they are based on price. But there are a couple of indicators I like to look at after I look at the price pattern.
Now that you have finished this section on the basics you can move on to the Intermediate Strategy section.
Move on to the Swing Trading Strategy section
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