Now i'm no expert in this and still learning myself, but in summary these are good metrics that traders will tend to monitor when looking for signals to buy into or exit certain trades.
Starting at the top you will see the chart using the 4hr chart. I tend to use the 4hr chart as 4hrs is a good amount of time to look at loner movements and patterns.
I have used the Fibonacci sequence where i have set at the top of the most recent high to indicate possible support and resistance lines. (Support lines are the ones below this point and resistant is above) You will often see the chart bounce between those. As you can see it bouncing off the red line.
Typically a bounce is good as it shows a good level of support but if it continues to test and with no upwards move then it's likely it will go down below this and test the below levels.
The line going through the chart is also the 50 day moving average, so you can see that it's crossed over the moving average within the last couple of hours.
Also you can see the red and green volume amounts as reference. (i don't tend to look at this much)
Moving onto the chart below the MACD, is a trend-following momentum indicator also know as the moving average. When the blue line crosses over and is above the orange then this signals the trend is signalling upwards and suggests an upward trend. This is typically when traders would look to enter a trade when looking to buy. The use this in conjunction with RSI.
RSI is intended to chart the current and historical strength or weakness of a stock, So anything going upwards is a good sign. Ideally you want this to be a constant slow growth and not a lot of jumping around. If it's constant this shows strong buying volumes and will go up.
Once the line goes out the purple section this can (not always) indicate that the market might be oversold. The RSI moves over time so if a stock stays high for a long period it will become the new normal.
Starting at the top you will see the chart using the 4hr chart. I tend to use the 4hr chart as 4hrs is a good amount of time to look at loner movements and patterns.
I have used the Fibonacci sequence where i have set at the top of the most recent high to indicate possible support and resistance lines. (Support lines are the ones below this point and resistant is above) You will often see the chart bounce between those. As you can see it bouncing off the red line.
Typically a bounce is good as it shows a good level of support but if it continues to test and with no upwards move then it's likely it will go down below this and test the below levels.
The line going through the chart is also the 50 day moving average, so you can see that it's crossed over the moving average within the last couple of hours.
Also you can see the red and green volume amounts as reference. (i don't tend to look at this much)
Moving onto the chart below the MACD, is a trend-following momentum indicator also know as the moving average. When the blue line crosses over and is above the orange then this signals the trend is signalling upwards and suggests an upward trend. This is typically when traders would look to enter a trade when looking to buy. The use this in conjunction with RSI.
RSI is intended to chart the current and historical strength or weakness of a stock, So anything going upwards is a good sign. Ideally you want this to be a constant slow growth and not a lot of jumping around. If it's constant this shows strong buying volumes and will go up.
Once the line goes out the purple section this can (not always) indicate that the market might be oversold. The RSI moves over time so if a stock stays high for a long period it will become the new normal.