What You Will Learn In Today’s Blog
- Basics on reading charts
- Learn what support and resistance is and how to use them to profit
- Learn what RSI is and how to use it when you trade
Before we get into this blog post I want to welcome you to my blog. If you are new to the blog, my name is Trav and I invest in stocks, gold, and cryptocurrency. I started this blog because I have been able to make anywhere from 5%-40% a day in profit. To put this in lame terms, I am making what the professionals make a year, every single week. I love helping people so I figured creating a financial blog and YouTube channel would help me to spread my knowledge to others in a super simple way. Sidenote: I write how I talk rather than writing grammatically correct in every instance so I can add more character to my posts and because writing and english are by far my weakest subjects…
Basics on Reading Charts
Okay guys so let’s hop straight into this. When it comes to reading chart, you are simply looking to see if you can “read” signs that tell you either buy or sell a stock. When it comes to reading charts, I typically use patterns to know when to trade but I always use these two indicators when trading so I figured we should start here. Welp, let’s get into it.
Trading with Resistance and Support
When it comes to reading charts, one of the most important things you can start with are support and resistance lines. These are simple to understand and help a ton when trading. They tell you what price a stock will most likely change direction at. So if a stock is valued at $100 and keeps increasing in price but you have a resistance line at $110, then once that stock goes to $110, it will probably start going back down. The support lines are the same thing but opposite. So if a stock is worth $100 and you have a resistance at $90, if the stock is going down, and it goes down to $90 it will then probably start to go up in price after that.
So why is that important? It’s important because if I buy a stock for $100, I am going to sell it at $110 and take my profit because the stock might crash after that. When it comes to resistance, if I see a stock falling in price I buy at the $90 price because it has a resistance there. Below is a video of a guy explaining the point I am trying to demonstrate. Eventually I will have my own videos but I am working on getting a nice set up right now so give me some time.
Trading with RSI
The RSI is another indicator, or sign, that indicates whether we should buy or sell a stock. When you use this along with the support and resistance lines, you will find yourself starting to have a good idea of when to buy or sell a stock. Wait until both are telling you to sell before you sell, and wait until they both tell you to buy before you buy. Below is a video explaining what the RSI is and how to use it. https://www.youtube.com/watch?v=a7nVrdpxYbY&t=91s
Wrapping it Up
Well guys these are two easy ways you can predict what’s going to happen next in the market. I hope you guys enjoyed this. If there is anything you do not understand you can look it up on youtube or send me a message on instagram @TheeDailyTrader, we currently have 35 followers as we are a new profile. I hope you guys are starting to see that when you pair the right things together trading can be simple. Not easy, but simple. See you in a next time.