Candlestick Charts
Each candlestick shows four values for a time period: open, close, high and low. A green candle means the close was above the open; red means the opposite.
Candlestick patterns signal potential reversals or continuations. Key patterns: Doji (indecision), Hammer (potential bottom), Engulfing (potential reversal).
Support and Resistance
Support is a price level where buyers have historically stepped in and prevented further declines. Resistance is a level where sellers have repeatedly capped advances.
A break above resistance (with volume) is a bullish signal; a break below support is bearish. Old resistance often becomes new support after a breakout.
Key Indicators
Moving Averages (MA): 50-day and 200-day MAs identify the trend direction. A Golden Cross (50 MA crossing above 200 MA) is a classic buy signal.
RSI (Relative Strength Index): Ranges 0–100. Above 70 = overbought; below 30 = oversold. Strong trends can keep RSI extreme for extended periods.
MACD: Compares two EMAs and their signal line. A MACD line crossing above the signal line is a bullish signal; crossing below is bearish.