Original subtitles

Let's continue to lay down some of these key foundational concepts.

Now, if you've got a good handle on it, you understand how to reach those kind of things and you just

want to jump ahead to a certain section, feel free.

That's OK.

That's no problem at all.

But let's talk about some more of the real key foundational things.

And I like to think about that.

There's these different tools and things that you can use.

And a lot of Murphree out there, too, are these platforms you can you can actually use for free.

And through we demonstrate through the course, everything I'm using is something that you can do and

replicate yourself for free, by the way.

But if we think about it, you can almost think of like like an artist, for example, like the Shah

of the canvas that they paint on.

Well, that's a chart, right?

That's where you're looking at the prices and some of the charts and things we saw.

So that's the overall chart.

And then how you interpret or read that chart is where you use tools, just like an artist might, you

know, paint with a paintbrush to kind of, in effect, make it come alive.

We use tools like that and technical analysis, price bars, candlesticks, lines and trendlines, indicators

like moving averages, volatility indicators, momentum indicators, all sorts of different types of

things we're going to learn about in the course.

But think of it that way of like I've got my canvas and then I'm going to apply my tools and that's

going to help me decide what to do.

So let's start by looking at the chart and understanding what a chart is.

Think of it as that blank canvas and you pull up a security and then fills in your chart and now you

can start interpreting, but you have to be able to read a chart, too.

So let's walk through, you know, how to read a chart again.

If you're familiar with how to read a chart, skip ahead.

But it's I think it's a good foundational exercise.

So let's look at a chart here.

This happens before a company called Xcel Energy, but it could be a chart for Bitcoin or anything.

It could be any kind of chart.

But I have to use this one for demonstration purposes.

Now, first, you might look at this and say I might scream and say that's a lot of information.

I have no idea what's going on.

Seems pretty complex to me.

Don't worry about it.

We're going to walk right through all the different components and as we go through the course and give

you lots and lots of examples, and you'll say to yourself at the end of the course, boy, I am an

expert at reading charts and so many different ways, so no worries, you'll be able to understand.

So let's walk through the different parts of a chart here so you can kind of get a feel for, you know,

for how that works and the different parts.

So first off, if you see at the top here, you know, that's just the name of the symbol.

Again, it could be a stock.

It could be the currency, it could be Bitcoin, Ethereum, whatever.

You know, it's basically the name of the security that you're looking at.

You know, it's like a shortened form.

But if you put in the full thing, the program will automatically pull up.

If I put an Excel energy, you would have likely pull up.

I would have to memorize the symbol, but it does that, too.

And then the period, you know, this is looking at daily prices.

So when you look down, the chart is give me daily and you can see there's a little bit of information,

but Excel with an open price was once high, was that kind of stuff.

So that's the kind of basics to get it started on them.

If you look down at the chart itself, you know, I put some letters around as we walk through these

different areas.

So we you'll see on a chart is on the right hand side, sometimes on the left, but typically on the

right hand side, you're going to see where the letter either you're going to see the price.

Right.

So this represents a range of prices that this security has ranged over over this period of time.

And, you know, some highs and lows above that, too, as well.

But you can look across horizontally and look at a certain price point and see, you know, well how

much, you know, when was it trading at this price point.

So that's the right hand side or the vertical axis would be the price on the bottom, on the horizontal.

And you can see the letter B there to the left would be the time frame and time ago from left to right.

So farther back in time would be like to the left and more near time would be to the right.

So I'm not sure how many days this was, but let's say it's, you know, 50 days, 50 days back would

be to the far left and yesterday would be to the bar to the most recent far right there.

So it gives you an idea of time as far as when the Intersect, you know, as far as time and price,

what the security was trading for at that particular time.

So if you look at, let's say, letter C, you can see that's like around the range, somewhere around

the sixty six sixty seven dollar mark there.

You can see we'll learn about Candlestick, but it represents the high priced and low price of the day.

But that individual bar there, that's the long kind of empty bar there with the white in it.

That's a price bar that would show you the price for the day.

You can probably see to the right there were some of the bars are turning red.

That just means that those prices are at those levels.

But they were they were down.

They were going down from there.

They're opening.

They opened higher and then they closed lower.

Don't worry.

We'll learn all about that.

But the idea is each of those little individual bars represent price.

And then if you look at, let's say, a letter D, you can see this is basically representing the whole

chart, but basically you can see from left to right how prices move up and down over this period.

Right.

Let's think of the whole chart as a whole, you know, looking at it from left to right and you see

all the ups and downs, peaks and valleys.

If you look at letter E, what that will usually represent on the bottom, there is volume.

How much are people trading?

How many active people are trading the stock buying and selling?

It tells you some days they're trading more frequently than others.

You'd look to the right, for example, of these little bars.

You see where they're taller in some cases towards the right.

That means there's more trading volume than on other days where the bars are shorter.

As technical analysis go, that actually tells us things that when there's a lot of volume that that

means something's happening.

And we'll talk about that as we go through the course.

But that's something to note as far as with volume.

And you'll see that on a chart.

A lot of times on the chart you'll see, like with the letter F, you'll see things that are overlaid

over it.

Typically, you would just see the price bar, the price peaks and valleys, but you can overlay things

over the top of that.

To give you an idea of something like in this case, we've overlaid these lines that represent a 50

day moving average is the blue one or kind of purplish and the pink one or reddish is the 200 day moving

average.

Got a whole section of moving averages is a great indicator.

But basically you're looking at what's the price been averaging over the last 50 days or the last two

hundred days.

That's where the lines have different looks to them.

And when a price bar crosses over the line, crosses over your individual prices, that can tell you

something, whether to buy or sell or if the two bars or the tuzman, the two lines cross each other,

that can tell you something to.

For now, all you need to know is that there are things that you can overlay over your chart that you

going to learn all about that you can use to help as far as deciding whether to buy or sell.

And then, gee, is kind of like a where you can add things on the top or bottom of charts depending

on your software or platform you use.

This one just happens to be an RSI or relative strength indicator.

Have a lesson on that.

No worries.

And it just tells you gives you some additional level of vindication whether you should buy or sell

you.

You look to the left there of the kind of long plane line there.

You might see where peaks above the 70 number.

That's not the price, by the way.

That's a different kind of representation that we'll learn about.

But you can see where peaks above that 70 number, and it's kind of great in there.

That's where it's telling us that this might be a time to sell.

And if we look down straight down from that, like the great part, we can see it really our prices

started to really peak there, Redbrick, kind of where the letter D is there and then started to turn

and go down.

Right.

So if we look to use this relative strength indicator, we could kind of confirm or look and say, you

know what, we've had a nice run up in prices all the way from the left to the right, getting a little

high.

Now, this relative strength in the Keter, which is an indicator we can use that's based on math and

technical analysis, is telling us, hey, we might want to watch this, we might even want to sell

because we could be running out of steam and time to sell.

And you could see how they kind of match up together and they actually went down.

In fact, if you keep going down further, you see that little spike in volume there.

That can be an indicator saying a lot of people are thinking the same thing and maybe looking to start

thinking about getting out of this particular security.

So this is where they can kind of all work together.

So the idea of a chart, you know, if you if it still seems a little confusing to you, no worries.

When we go through the course, I'm going to show you charts.

I'm going to show you things on a walk right through, and they'll become even more easy to understand

as we go through for kind of an extra credit or whatever we can say.

If you look at this example chart, what might it be telling you?

And let's just concentrate on the right hand side.

There were these big, long, red bars are more towards the right there.

What is the kind of you have a feel for what it might be telling you?

What's happening with the price?

Is that going down?

Is it going up?

Is it going up sharply?

Is there a period where you might be going down sharply?

And if you look closer to it as you learn to read about charts and don't worry if you don't get it,

yeah, no worries at all.

But just look at and say, OK, here, if I look at this period, boy, that really went down right.

It started OK, pretty high around seventy four and then went real steeply down those long red lines

and then went, kept going down, down, down.

Look at all those red days in a row, a lot of volume in the bottoms.

A lot of people are selling the, the kind of you know, went sideways a little bit and then kept going

down again.

Right.

So you can kind of learn from that as far as what's going on as well.

We'll learn about trends and things, but we'll learn why is that happening?

How can we dissipate and how can we, in fact, either avoid it or take advantage of it?

If we look to the right of where I've kind of highlighted there, you can kind of see where it's kind

of stayed in a narrow trading range.

We would call where it's not gone up a lot, not gone down a lot.

It just keeps bouncing up and down.

So the range looks to be around sixty four dollars and sixty six dollars and fifty cents.

And the current price there on the right that I'll highlight in black.

When you look at a price chart, by the way, you'll see sixty six 02 is the current trading price.

Now do you buy the ACEL, do you do nothing.

Well that's what we'll learn about in the.

But if you think about it, just kind of just kind of common sense wise, you could say, well, if

I'm in this trading range of sixty four dollars to sixty six fifty, and right now I'm at sixty six

point zero two, there's not a lot of room to go up.

In fact, there might be more downside risk than upside gain.

So that might be one way you can certainly look at it as well.

So reading charts or admiring the artist's canvas and you're the artist.

Not a hard thing.

And as we go through the course again, you'll learn that you'll be comfortable with it and you'll love

it because you're going to be looking at charts all the time and making great decisions using those

charts.

And the tools and indicators are going to learn throughout the course.