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Chart Analysis - Support and Resistance

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  Support  is the price level where “greedy” buyers enter the market to prevent prices from declining further. Support can develop at a specific price or, more commonly, in a price zone. Areas of support can exist for many months at a time. After breaking support, traders who bought in the zone of support are now holding losses and, in order to break even, want to sell as soon as prices approach their original purchase prices  The  Volume by Price  overlay (volume traded in incremental price ranges) in the following SharpChart of Dover Corp. illustrates how strong support at 24 later became significant resistance as greed turned into fear. If resistance is broken, market psychology causes the previous area of price resistance to turn into support. The diagram above illustrates this market behavior. Stock holders who sold in the zone of resistance are now regretting selling and want to buy as soon as prices approach the level they sold at earlier. Prices that see...
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PDT Rule - Pattern Day Trading Rule And How to Avoid Breaking It

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  Here’s what you need to know. It is in regard to MARGIN ACCOUNTS ONLY - if you trade in the limit of your own money - you will be fine  If you execute 4 or more  intraday  round trips  within 5 rolling business days and  your account value is less than $25,000 - your account is flagged.  Keep in mind that you don’t have to borrow on margin to violate the pattern day trader rule What Are the Consequences? For first-time offenders, the consequences might not be so bad.  Y ou will be flagged as a pattern day trader (in the violator sense) just so your broker can watch your activities for any consistent or repeat offenses. You may subject to a minimum equity call, a minimum account value of $25,000 (even if you don’t intend to day trade on a regular basis).  Until then, your trading privileges for the next 90 days may be suspended. You could be limited to closing out your positions only. And your margin  buying power  may be sus...
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Graphs - Go beyond the default. OHLC - bar graphs

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OHLC + LINEAR chart is an  Open-High-Low-Close   Chart   A five-month price SharpChart on   line format  of Apple, Inc. (AAPL) An OHLC chart is a type of bar chart that shows prices for each period. Bar and candlestick charts are widely used by technical analysts because the open, high, low, and close data gives a quick overview of the day’s market psychology and trading activity. KEY TAKEAWAYS An OHLC chart shows the open, high, low, and close price for a given period. It can be applied to any timeframe. The vertical line represents the high and low for the period, while the line to the left marks the open price and the line to the right marks the closing price. This entire structure is called a bar. When the close is above the open, the bar is often colored black. When the close is below the open the bar is often colored red. Add caption   When the right line will be above the left ,- the price rises over a perio...
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