How to analyze a stock

 In Trading Thoughts
Daily chart
First of all, start looking at levels on a daily chart. Trace lines for support and resistance. This will give you the main trend. TSLA is short and been downtrending on heavy selling
Hourly chart
Second, take a 1hr or 30m chart and look for multiday support and resistance levels. Look for gap up and gap down, look for patterns as consolidation / distribution or candlestick patterns.
For this I suggest you study candlesticks.
Intraday chart
I would suggest you use a 3 or 5m chart. Here you can start seeing deep the micro support and micro resistance of the actual day and the prior days. You will notice when you have trendline breakdowns or breakouts.
In the example of TSLA we can see how in a downtrending stock, after several days on congestion we have a breakdown, followed by a huge amount of selling and increasing red selling volume candles. Each support was broken, then subsequently we saw consolidation and more breakdown on the last day.
For everyone that wants to learn day trading and swing trading join Smallcaproom, the best place where to learn real trading and follow me in live trading commentary every day through screen share.
Recent Posts

Leave a Comment

Start typing and press Enter to search