I discuss five indications that traders need caution on QQQ (and market generally) instead of expecting an immediate directional move.
This video demonstrates how to use chart analysis to form context for placing trades. By understanding the daily chart, traders can then look for good trade entries on smaller timeframes. I also created this video to counter all the directional predictions on Twitter. When developing a trade idea, consider how long it may take for the price move to happen.
While channel lines and RSI may seem basic, these are some essential indicators that tell a story of what is happening. Successful traders may find this dry or unhelpful. I have recorded this for newer traders, and really for anyone who still needs to master chart analysis. If you are still copying trades without seeing your own confident setups, then watch this video.
Great educational video. One question though, Why do you plot the orange and green lines based on the lowest intra-day price in previous days instead of their closing prices?
OptionsRising
⋅
@huangyuxiang0822, Both lines are valid, depending on your chart focus. If you use line charts then your trend lines will connect closing prices. On candle charts you can use either; connecting intraday highs/lows (the wicks) will capture full price action. I prefer this method to identify places to buy/sell options. Price may not open or close at these lines but at some point it will touch; this is especially useful in more volatile stocks. Sometimes I use both to help my analysis. Here is an example:
OptionsRising
⋅
@huangyuxiang0822, One more note - price may touch the lines and reverse, creating a good place for a trade entry. If price then closes above/below the line I can look for a direction change or continuation move.