I learn stock options trading.
When I first started learning about trading, one book stood out as both unusual and deeply influential: You Can’t Lose Trading Commodities by Robert F. Wiest. The title sounds outrageous — of course you can lose — but inside this book was a systematic way of looking at markets that changed how I thought about … Read more
Volume Profile is a charting tool that displays the amount of trading volume at each price level over a specified period, appearing as a horizontal histogram on the side of the price chart as an upper indicator. Unlike traditional volume bars that show volume over time, Volume Profile reveals where the most trading activity occurred … Read more
Pivot points are calculated support and resistance levels based on the previous period’s high, low, and close prices, appearing as horizontal lines on the chart that act as upper indicators for the current trading period. Originally used by floor traders before computers to quickly identify key levels, pivot points provide objective, mathematically-derived price targets that … Read more
The Ichimoku Cloud is a comprehensive technical indicator system that displays support, resistance, trend direction, and momentum all in one view, appearing as multiple lines and a shaded “cloud” area on the price chart. Created by Japanese journalist Goichi Hosoda in the 1960s, this upper indicator provides a complete picture of market conditions at a … Read more
Fibonacci retracements are horizontal lines on a chart indicating potential support and resistance levels based on mathematical ratios derived from the Fibonacci sequence, appearing as upper indicators at key percentage levels of a price move. These ratios – particularly 23.6%, 38.2%, 50%, 61.8%, and 78.6% – appear throughout nature and financial markets, creating self-fulfilling prophecies … Read more
Price channels are parallel trend lines that contain price action between defined upper and lower boundaries, creating a visual “highway” that price travels within during trending markets. As upper indicators drawn directly on the chart, channels show both the trend direction and the range of movement, making them perfect for option traders who can sell … Read more
Trend lines are diagonal lines drawn on price charts connecting swing highs or swing lows to visually represent the direction and speed of price movement. As upper indicators drawn directly on price, trend lines provide dynamic support in uptrends and resistance in downtrends, adapting to the market’s changing pace unlike static horizontal levels. For option … Read more
Support and resistance lines are horizontal lines on a price chart marking levels where price has historically reversed or paused, representing areas where buying or selling pressure consistently emerges. These upper indicators form the foundation of technical analysis because they represent collective market psychology – support shows where buyers step in to prevent further declines, … Read more
Bollinger Bands are a volatility-based indicator consisting of three lines that create a dynamic envelope around price – a middle moving average and two outer bands set at standard deviations above and below. Created by John Bollinger, these upper indicator bands expand during volatile periods and contract during quiet consolidation, providing a visual representation of … Read more
Moving averages are trend-following indicators that smooth out price action by creating a constantly updated average price over a specific period, appearing as lines directly on the price chart as upper indicators. These versatile tools serve multiple purposes – identifying trend direction, providing dynamic support and resistance levels, and generating trading signals through crossovers. For … Read more