Beyond single candles and simple support/resistance lines, certain multi-day price shapes repeat often enough across every liquid market that traders gave them names decades ago. None of them work because of some hidden mathematical law — they work (when they work at all) for the same reason the 200-period moving average matters: enough market participants…
Every piece of technical analysis starts with a chart, and every chart makes two choices before a single pattern gets drawn: what type of chart, and what timeframe. Getting these basics right isn’t exciting, but getting them wrong quietly undermines everything built on top. Candlestick, bar, and line charts drawn from the same price data….
Every single candlestick, on every timeframe, encodes exactly four pieces of information: the open, the high, the low, and the close of that period. A green (or hollow) candle closes above where it opened; a red (or filled) candle closes below where it opened. The thick part is the body, spanning open to close; the…
Support and resistance are the most basic and most durable concept in technical analysis: price levels where buying or selling pressure has historically been strong enough to stop or reverse a move. Resistance is a level where a stock has struggled to rise above; support is a level where it has struggled to fall below….
A gap forms when a stock opens at a price meaningfully different from where it closed the previous session — most often caused by news breaking while the market was closed: an earnings report, a clinical trial result, an FDA decision, a secondary offering. On a daily chart, a gap shows up as empty space…
Where single-candle shapes capture a snapshot of one period’s tug-of-war, multi-candle patterns describe a short sequence of candles that together tell a more complete story about momentum, exhaustion, or consolidation. A handful of these recur often enough across stocks and timeframes to be worth knowing by name. Two classic multi-candle patterns: bullish engulfing and morning…
Technical indicators are mathematical formulas applied to price and volume data, designed to add context to what a chart is already showing. None of them predict the future with certainty, and no combination of indicators has ever been shown to work all the time — they are supplementary tools, not a substitute for reading the…
Every concept covered so far in this course — chart types, candlesticks, support and resistance, gaps, patterns, indicators — comes together on the daily chart. Before looking at any intraday setup, experienced traders size up the daily chart first, because a weak daily chart caps the upside of even the cleanest intraday setup, and a…
This closing lesson doesn’t introduce new material — it’s a synthesis of everything covered across this course, organized into a practical sequence for reading any chart, on any timeframe, before forming a view on it. The six questions worth asking before trusting a technical read. A Repeatable Sequence Identify the chart type and timeframe. Confirm…