How to Analyze Stock Charts with AAPL example

List of Criteria to Identify Best Stock Picks
Yesterday TechniTrader held the Open Forum Training Event as we do once a year. This is totally different than my webinar presentations to non-students. It was as always, a massive surprise to the attendees who were blown away by the training.
What I do is let a “By Invitation Only” group of registered website guests which are non-students see how I analyze stocks and the market. I do it live, using real charts. Attendees may submit a stock for analysis to see how I analyze their stock picks.  I had far more requests than could be analyzed in one hour, but it was an eye-opener for me.
I was struck by one compelling common denominator in that list of stocks. There was not a single good stock chart pattern for short-term trading among all of the stocks submitted for analysis by the attendees. This was a stunning revelation because it means that all of the attendees need what I consider “basic chart training,” and clearly none of them had been taught. The attendees ranged from brand new traders to veterans of 30 years. This means it was not about what you have learned thus far, but what you have not yet been taught. There was a gigantic gaping hole in their ability to select strong charts to trade.

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That is probably something really tough for veterans to accept but if a trader cannot read the trends and find the EASIEST and BEST stocks to trade, then they are just spending an enormous amount of time, money, and effort that does not result in good profits and monthly income.
If you are a “do it yourselfer” which the Securties and Exchange Commission SEC calls a “Hobby Trader” then it really does not matter if you make a profit or not, since you are trading for fun. I am not really the teacher for Hobby Traders as I work solely with Students who are serious about making consistent profits from trading stocks. So if you are just doing this for fun, then this lesson will not interest you.
AAPL is a very popular stock in retail chatrooms right now. Let’s use it as an example, see chart below.
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Use this chart to learn how to analyze stock charts with AAPL example in order to determine the following:
1. Where are the support levels in this chart?
2. Is there momentum potential action, and Is run gain potential down or up? 
3. Can you identify weaker versus stronger previous price candlestick patterns and trendline patterns in this chart?
4. Is this good stock for Day, Swing, Momentum, or Position Trading? 
5. What are the indicators telling you?   
6. Do you know where to put a PROPER stop loss? If you think stop losses do not work, then you are not placing them properly. 
7. What Trading Style would work best, and which strategy should you use for that trading style?
8. Which Market Participant Group is in control of price right now? 

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Print off the chart. Draw on it. Study the overall trend. Look at different time frames. Do not have so many indicators on the price chart that you cannot read the pure price action. You should not be using more than 5 indicators and most of those need to be quantity based indicators.  If you don’t have a good set of indicators, study the chart provided with this lesson.
Let’s see how you do. I will provide my analysis of the Price and Volume action for AAPL next week. The goal is for you to be able to pull up any stock chart and quickly decide if it is a good pick for your Trading Style, as well as knowing which strategy to use at the time based on current Market Conditions.
Your ultimate goal in understanding how to analyze stock charts with AAPL example should be to have the ability to know what style and which strategy for that style to use, the risk versus reward profit potential, the hold time, the run gain, and the stop loss placement. My goal in my retirement years is to teach Retail Traders to trade profitably all the time, not just once in a blue moon. If you do not learn how to do this kind analysis on your own, you will forever be dependent upon vendors, High Frequency Traders HFTs, and Professionals who will always take advantage of you. 
Next week’s article will be my analysis of the AAPL chart, which you can use to compare and check against what you have determined.
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Trade Wisely,
Martha Stokes CMT
TechniTrader technical analysis using a StockCharts chart, courtesy of

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Disclaimer: All statements are the opinions of TechniTrader, its instructors and/or employees, and are not to be construed as anything more than an opinion. TechniTrader is not a broker or an investment advisor; it is strictly an educational service. There is risk in trading financial assets and derivatives. Due diligence is required for any investment. It should not be assumed that the methods or techniques presented cannot result in losses. Examples presented are for educational purposes only.