Strengths and weaknesses are something you'll often hear with charting. Tim Bohen is here to explain why you should look at one over the other.
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Let’s go over strong charts and weak charts. You want to look at daily charts, weekly charts, monthly charts.
When talking about support and resistance — strength and weakness — you basically boil it down to an up trending chart versus a down trending chart. And the reason you want to focus on this is, if you're looking to buy stocks that are breaking out, pushing new highs late day, that may gap up, that may look to be swing trades, that could continue for multiple days… we wanna see strength.
Remember, know your candle sticks. Look for strength… that higher low. Each opening candle is higher than the previous candle's low, than that higher high. So the closing of the candle is above the previous closing candle. That would be considered a strength.
Weakness is that lower lows and lower highs, a down trending chart. This is more if you're looking to short sell. If you've got a stock making lower highs, lower highs getting ready to break support, that's your short area. That's your weak chart.
It's a good thing to know these different patterns, this different terminology. It may seem basic, but these things can commonly be misunderstood. If you're long bias, focus on those strong charts. If you're short bias, focus on the weak charts. And if vice versa, if you're short bias, avoid shorting an up trending chart. You might get lucky sometimes, but you're more likely to get in trouble. Vice versa, if you're a long bias trader, avoid trying to bottom feed.
In momentum stock land, a lot of these stocks never come back so avoid those down trending charts.
#StocksToTrade #StockCharts #DayTrading
*Tim Bohen teaches skills others have used to make money. Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed may be exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable.
You can lose money trading stocks. Do not invest money you cannot afford to lose. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services.
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✅ Recommended video: https://youtu.be/1dGc4MIGmOw
✅ Recommended playlists:
Stock Trading 101: A Day Trader's Guide: https://www.youtube.com/watch?v=G_v3GMkKCjk&list=PLWWz2BSabm3bG64ohfJ-CnnVTjLCWwvei
Advanced Stock Trading Tips: https://www.youtube.com/watch?v=OXLs_-PgMUk&list=PLWWz2BSabm3YCZdk7ocrBXGJaLVXXFUYb
StocksToTrade Software Tips and Tricks: https://www.youtube.com/watch?v=jiTi-chHNyo&list=PLWWz2BSabm3ay_lvQC9JN_1niB78bI7ga
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Let’s go over strong charts and weak charts. You want to look at daily charts, weekly charts, monthly charts.
When talking about support and resistance — strength and weakness — you basically boil it down to an up trending chart versus a down trending chart. And the reason you want to focus on this is, if you're looking to buy stocks that are breaking out, pushing new highs late day, that may gap up, that may look to be swing trades, that could continue for multiple days… we wanna see strength.
Remember, know your candle sticks. Look for strength… that higher low. Each opening candle is higher than the previous candle's low, than that higher high. So the closing of the candle is above the previous closing candle. That would be considered a strength.
Weakness is that lower lows and lower highs, a down trending chart. This is more if you're looking to short sell. If you've got a stock making lower highs, lower highs getting ready to break support, that's your short area. That's your weak chart.
It's a good thing to know these different patterns, this different terminology. It may seem basic, but these things can commonly be misunderstood. If you're long bias, focus on those strong charts. If you're short bias, focus on the weak charts. And if vice versa, if you're short bias, avoid shorting an up trending chart. You might get lucky sometimes, but you're more likely to get in trouble. Vice versa, if you're a long bias trader, avoid trying to bottom feed.
In momentum stock land, a lot of these stocks never come back so avoid those down trending charts.
#StocksToTrade #StockCharts #DayTrading
*Tim Bohen teaches skills others have used to make money. Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed may be exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable.
You can lose money trading stocks. Do not invest money you cannot afford to lose. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services.
I want to get better at dip buying. A lot of the breakouts have been fakeouts (its always been a volume issue, but you don't know when its going to reverse on you), so I want to buy a strong long term chart with a weak intraday period.
Go long on strong charts. Great video. Always a pleasure. Thanks Tim.
Seck
I've been long biased so far, out of necessity. When my account has sufficiently expanded, I'm looking forward to experimenting with the shorts.
Strong and weak
Tim, Thanks for what you do! I just started learning trading about 2 months ago. When I'm scanning in the morning using STT many of the big % gainers that are under $10 have weak long term charts (6-12 months). Some end up getting huge volume a good price action on the day (I am long biased for sure). I know nothing is absolute in the stock market. My question is: Is it fairly common for stocks that have a long term weak chart (Tim Sykes refers to these charts as 'crows' slowly being pecked to death.) to make several last gasps before completely dissolving?
I've been trying to swing the bounce on the year time span when it's at the bottom of the range, I wait for a confirmation or two and set my stop at the last major low but it doesn't seem to be working out. Am I being dumb or is there a right way to play this?
Do you like to long or short strong charts?