Technical Analysis

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Trading channels can be established to show a range in which a stock is currently trading in. One that I use is the Standard Error Channel. This automatically gives buying and selling areas which is a useful tool that takes away price speculation. On the TOS app you can set up a standard error channel by setting one channel at 1 and the other at 2. Also, by making the upper channel red tells me it may be overbought and time to sell or short. By making the lower channel green it shows that it is in the oversold area and maybe time to buy or cover your short. Prices tend to stay in these channels 80% of the time. 

Visualizing and correctly interpreting a trend on a chart will help a trader know the possible and likely direction of a stock inside its trading channel. In this picture the trend is up so I would be looking to buy at the bottom on the channel if it went there as long as nothing fundamentally has changed in the stock. If the trend was down I would be looking to short at the top of the channel. The trend is your friend. 

The RSI (relative strength index)  is an indicator that is used to show the magnitude of recent price changes and if the current stock price is over bought, over sold, or somewhere in the middle. RSI is a great tool that when used in conjunction with other indicators, such as the MACD. I use it with the MACD Histogram. Using these two indicators together help me establish entry or exit points in a trade. Volume is also considered here as volume will generally fall or rise on trend reversals. In general, an RSI over 70 is considered over bought while an RSI under 30 is oversold although, many stocks go well beyond these parameters. It all depends on the volatility and strength of the trend.  

Volume is an indicator that shows the strength of price movement. Heavy volume when a stock is trending up shows buyers are stepping in while heavy volume when a stock is trending down shows the sellers are. Heavy volume is essential to trading with the trend as it would take a huge shift in the price actions sentiment to change it's direction. On the contrary, light volume can cause the price action to be easily manipulated and is unpredictable. Change of volume is a great way to find trend reversals such as in a strong uptrend if volume dies off, buyers are losing steam and leaving the door open for profit taking and short sellers.