1
Support and resistance
Support is a price zone where buying has stepped in before; resistance is where selling has. Breaks through these levels on heavy volume matter more than quiet ones.
2
Trend and moving averages
The 50- and 200-day moving averages summarize the trend. Price above both is generally an uptrend.
3
Momentum indicators
RSI above 70 is often called overbought and below 30 oversold — but strong trends can stay there for a long time.
Common mistakes
- Using too many indicators that all say the same thing.
- Moving your stop because the chart "should" bounce.