 Hey, how's it going everybody? Welcome. Welcome. Welcome back to the channel Yeah Dedicated to financial literacy. That's the name of the channel Continue to hit the subscribe button Right and also, you know, give me a thumbs up if you like if you like the video Be sure to tell me about it and then in the notification bell and that will notify you when I have more content coming on the channel Okay, again, like I want to tell everybody I started this channel basically for my friends friends and church family and Family members, you know, people were asking me about the stock market and during the pandemic We couldn't really get together. So I said, you know what? Why don't I do a couple of videos on YouTube and you guys can just check them out in your own leisure? And that's kind of how it started and now with 30 some videos later I'm still doing them. And so Not trying to make any money on YouTube or anything like that. That's not my goal at all I just whoever wants to learn whoever wants to check it out You can you know and this channel is geared towards people that are new to investing And you're just trying to find out about the stock market whether it be trading or investing This video today and I'm gonna do a few of these I want us to do a little series I would say on technical analyzing now Technical analyzing is basically It's the study of historic price movement In order to make an accurate or semi accurate Decision on where the market is going. So I'm gonna say that again. It's the study of historic price movement Historic history in the past by looking at charts You can look at the past and make an educated guess or accurate decision on what the market is going to do in the future Well, that's very important if you can look at history and and and get a pretty good guess on what's gonna happen in the future Then you can anticipate, right? You can anticipate and Say, okay, I believe this stock this company is gonna do this based on what it's done in the past and These trends that it's made in the past tells me that there's a good chance It's a very good chance that it's gonna go up or it's gonna go down Well, if you you know if you can anticipate like that, then you can have a really successful trading career, right? So so that's kind of what we're gonna talk about We're gonna talk it about technical analyzing now I mostly fundamental analyzing is what I do which is basically the study of the company the business It goes more into the accounting of the business cash flow Profits What they call PE EPS And these are all things that I've spoken about in previous videos, so you can just go back I'd look at the the leadership of the company The executive team What kind of people are they you know and have they been successful in the past That's all fundamentals where you're studying the company itself and by looking at where this company is and where it's going and The success that it's having and another thing is do they have a competitive edge in the market? You know, do they have a competitive edge out one company? I'll give you that has a competitive edge. That's Amazon Whether the company you can think about it that does what Amazon does so they have what's called a moat They have a competitive edge. That's fundamentals this channel or this video is talking about technical analyzing and mostly technical analyst Analyzing is is used that tool is being used mostly by day traders Not just day traders, but particularly day traders rely a lot on technical analyzing now. I Have a little board up here. It's so I've got some some Some drawings and we're just gonna go over a few One of the things that I want to do is really try to keep the videos To a minimum and not too long. Okay, and so today what we're going to talk about is There's three types of charts. There's more but you did the basic three charts is the bar chart The candlestick chart and the line chart now candlestick takes a little bit more time to explain It's just a little bit more difficult. So I'm going to say that for another video and we're just going to work with the line chart It's just a singular line okay, and We're going to start and we're going to assume that this is Microsoft The ticker symbol for Microsoft is MS FT Microsoft okay now if You can if you look at this chart if you look at this chart What in your mind? What would you say if you had to guess is this chart heading up or heading down? Is the stock heading up or down? You're 100% right this is up and that is what's called an up trend So for you newbies out there new investors if you hear someone say You know if you hear somebody say it's it's trending up or it's an uptrend or a downtrend Well, what is a trend when I was younger a kid when I was a kid Levi's jeans were like very popular Okay, very popular at one point and everybody was buying them They were trending Because everybody I Mean all the kids my age wanted a pair of Levi's and then it was converse the canvas converse shoes back then You know the converse were about 11 bucks. They were about $11 in the late 70s Early mid 70s there late 70s. They were like a 11 to 13 bucks at the most $15 okay for a pair of converse and so They you're trending they were trending. So a trend is when You get a group of people moving in the same direction They're all the people are going in the same direction of the majority of people are going in a certain direction That's a trend whether it be up or down. Well, what on on this display here I when I want to show you is an uptrend and there's some things that I want to talk to you about concerning the trend And so let's take a look at it. Okay real quick, and I'm just gonna go over a few things with you Where's my marker because I may need to write on here too Now the first thing and I want you to know whenever you hear you're going to hear a term called higher high and lower high Whenever you hear about an uptrend Where the market or the stock is going up you're going to hear higher high and here's the higher high right here You see that that's a higher high. It's a higher high now here is another higher high Why is this called a higher high? Because it's higher than the previous high so the stock went up and Then what we want to call this when the stock goes up like that. We want to call it an impulse Impulse impulse and when it goes down we call it a pullback pullback Impulse pullback impulse pullback Here's another higher high You see that there's another higher high Meaning it's higher than the previous high so whenever you hear higher high that just means It's higher than the previous high So here we go. Here's a high here higher high higher high Now the market is going sideways here. It's not going higher. It's not going down or it's not going up or down It's not trending up or down. It's going sideways or what they call consolidation That's consolidation It's not going up or down. It's just going sideways, but then here we go Here's another higher high Now one of the things I haven't said is lower highs It has a higher high higher than the previous high, but it also has a higher low HL a Higher low So you can see here That it's a higher high higher than the previous high, but it also has a higher low So the low is higher than the previous low You see that the low is is is is higher than the previous low now Here's a indication on how you can see if if it's really truly an uptrend And that is this The higher low Has to be higher than the previous low That's an indication as long as that's happening You are still in an uptrend, but the moment this the the low This low Goes below the previous low You see that as long as the low is higher You're fine. We're still in an uptrend but if this actually came down here below The previous low There's a good chance you're looking for a reversal to a downtrend as Long as this low is above the previous low This low is above the previous low this low is above the previous low as long as that's happening You're in an uptrend For the most part now. I'm not saying that I'm not saying that it could it couldn't shoot down and go past and break past that previous low But I'm just trying to give you as far as well in an uptrend a true uptrend You got higher highs Look at these higher highs That's what higher high means. It's higher than the previous high and then you have higher lows Higher lows The lows are higher than the previous low. This low is higher than the previous low and As long as this now watch this say this came down here All right, and it goes below the previous low There's a good chance you're in a reversal going the other way the market is going down as long as the Preve as long as this higher low stays above the previous low You're in an uptrend Does that make sense to everybody and it's the very opposite in a downtrend It's a very opposite here is higher highs In a downtrend It's high. It's higher lows It's lower highs. I should say lower highs and Lower lows Okay, so this is a this is called an uptrend This is called an uptrend The market went up here. This is an impulse and then we had a pullback impulse pullback impulse Consolidation sideways market down Pullback Then we had an impulse the market went up down If it breaks past the previous low There's a good chance that you're having a reversal Alright, now we go back to a high Higher highs remember higher highs Then we have a pullback the higher low is Previous is it's higher than the previous low as long as those two things are happening. We're in an uptrend All right Okay So we'll get rid of that Now the very opposite with the downs with the downtrend And I'm just gonna go over this really quickly Time is running out I spent a lot of time on the uptrend, but it's the very opposite so So now What we're looking for in the downtrend Is lower highs See lower highs Lower highs The highs are lower than the than the next one You got it see so what's happening is this lower high This high right here is lower than the previous high and Then you have lower lows See that Lower lows Lower Lower lows This confirms a downtrend Lower highs Lower highs and lower lows what about a reversal if This let's go here Say this went up Above the lower high and Breaks that lower high. There's a chance that there's a reversal the lower high Begins to go up And this is the impulse here Remember, that's the impulse because this is the downtrend. This is the reversal. This is the pullback Okay, so if this goes up above the previous Above the previous high and Exceeds that lower high You're looking at it. You're looking at a you're looking at a reversal where we're going we could be going back to an uptrend All right But this is what you want to look for Lower high lower high lower high Lower high The high is lower than the previous high The high is lower than the previous high lower lows All right So I'm not gonna spend too much time on that now We're gonna say this is Google Google is the company name is Alphabet actually Google is Alphabet the ticker symbols GOOG What I want to show you real quickly here is resistance and support Support and you can do this in your charts you can draw lines Support here's here's the actual you can see the chart what it's doing Okay Now this is this you can clearly see this is a downtrend lower highs lower high the lower high lower high lower high lower lower low lower low lower low lower low lower low Okay, so Support Support this support what's called support? Meaning it's when the it's when the chart or the stock bounces off Bounces off a bottom and Begins to head up as We did here as you notice it comes down here and every time it gets to this support area This part of the the chart it bounces back up Comes down here bounces back up Comes down here and bounces back up. This is a support when you think of support think of a floor When you throw the ball off the floor it bounces up so think of support that way resistance is the very Opposite it's like the roof if you throw a ball off the roof it bounces down If you notice Here's what it's doing This stock Google Every time it comes here It bounces back Comes to this again this level bounces back bounces back bounces back bounces back and you can draw this line and Basically a resistance and support shows you a trend of what a stock is doing So we could we could say wow every time Google gets to this line It bounces down Why is that important? Well, if you know it's going to bounce down here you can sell before it goes down And then when it goes down here to support Now you know every time it comes down here it usually bounces up So now this is a buying opportunity. You buy it before it hits resistance. It gets there I mean before it hits support and then it bounces back up and then oh, I gotta sell it's gone It's it's approaching resistance. It's approaching the ceiling. I gotta sell It's about to hit the floor. I gotta buy Now that doesn't always happen that way. I'm just giving you an analogy an example. Okay, so Resistance and support I feel like I need to explain this even better So I'll I'll probably spend a little bit more time on that in a video Explaining resistance and support, but this is a downtrend but it has the lines drawn where you can draw these two lines a support line and resistance if at any time this line breaks Resistance that's usually mean it's establishing a new high or if it breaks support It's establishing a new low So that's why these support and resistance lines are a lot of times very important because if they break this line if this one goes here It's broken the support So guess what? This actually becomes the new resistance. It becomes the new ceiling Because you've just broken the support. So the support actually becomes resistance And now you establish a new floor Same thing if it goes above resistance if if this line goes above Resistance and the stock begins to go above resistance This becomes support and now you're establishing a New resistance You see how that worked it went past resistance so it established a new high Now there's a new high being established. So because it's a new high being established Now you got to make this your support line Anyway, I'm gonna leave it at that if you have any questions, please put them in the comment section So that I can break it down even further. I hope I did that was the basics We're gonna talk about candlesticks on the next video. Okay. Thank you and have a wonderful wonderful day everybody