mirror of
https://github.com/verymeticulous/wikAPEdia.git
synced 2025-06-08 10:57:51 -05:00
Create GME-Technical-Analysis-Reading-Price-Action.md
This commit is contained in:
verymeticulous
parent
f6ac825809
commit
a3c8427fec
@ -0,0 +1,98 @@
|
|||||||
|
GME Technical Analysis - Reading the Price Action
|
||||||
|
=================================================
|
||||||
|
|
||||||
|
| Author | Source |
|
||||||
|
| :----: | :----: |
|
||||||
|
| [u/squidja](https://www.reddit.com/user/squidja/) | [Reddit](https://www.reddit.com/r/Superstonk/comments/mvvk47/gme_technical_analysis_reading_the_price_action/) |
|
||||||
|
|
||||||
|
---
|
||||||
|
|
||||||
|
[DD 👨🔬](https://www.reddit.com/r/Superstonk/search?q=flair_name%3A%22DD%20%F0%9F%91%A8%E2%80%8D%F0%9F%94%AC%22&restrict_sr=1)
|
||||||
|
|
||||||
|
I am new to trading, just getting started on January 27th during the first event, so definitely don't take any of this as financial advice.
|
||||||
|
|
||||||
|
Although I love watching/reading GME news it's mostly for entertainment purposes and isn't a factor in why I HODL. I HODL because I agree with the DD.
|
||||||
|
|
||||||
|
In swing trading I look for reversal patterns and trend lines using technical indicators to give me a complete picture of the price movement.
|
||||||
|
|
||||||
|
GME is a heavily manipulated stock but I believe there are still insights we can gather from analyzing the chart.
|
||||||
|
|
||||||
|
There are essentially three types of trading:
|
||||||
|
|
||||||
|
Day Trading / Intraday Scalping - Short term trading where trades are placed during the same day often times buying and selling within minutes or seconds.
|
||||||
|
|
||||||
|
Swing Trading - Medium term trading where trades take place over several days or weeks. (This is the system I use)
|
||||||
|
|
||||||
|
Investing - Long term that spans years.
|
||||||
|
|
||||||
|
I look at 1 Year, 1 Day charts every day and use technical indicators to *attempt* to predict the price. No system is 100% perfect because no one can predict the future. (btw, by this point you're probably thinking, "Is this guy day trading GME?" Absolutely not, that would create more liquidity.)
|
||||||
|
|
||||||
|
The first indicator I use are Candle Sticks. They basically give me a quick summary of the days price action.
|
||||||
|
|
||||||
|
Candle Sticks take the day's price action,
|
||||||
|
|
||||||
|
[](https://preview.redd.it/gmn0e5kjsmu61.png?width=2256&format=png&auto=webp&s=c31341bf0e7e236250b644887903b69fb1f918ea)
|
||||||
|
|
||||||
|
GME Wednesday, April 21st.
|
||||||
|
|
||||||
|
and condense it down to this to summarize the days movement (I'm a Creative Director so I have really good crayons.)
|
||||||
|
|
||||||
|
[](https://preview.redd.it/xcv9epmy1nu61.jpg?width=8001&format=pjpg&auto=webp&s=f9e239984e2d4aed51a1ca9c70622669aaf59fe4)
|
||||||
|
|
||||||
|
If the price went down for the day it's a red candle stick, if it went up it's a green candle.
|
||||||
|
|
||||||
|
When I zoom out and add my indicators (I'll cover those shortly) I can see the trend line over the last few months.
|
||||||
|
|
||||||
|
Moving Averages I use:
|
||||||
|
|
||||||
|
18-Day: Exponential Moving Average (more weight towards most recent candles)
|
||||||
|
|
||||||
|
40-Day: Exponential Moving Average
|
||||||
|
|
||||||
|
50-Day: Simple Moving Average
|
||||||
|
|
||||||
|
100-Day: Simple Moving Average
|
||||||
|
|
||||||
|
150-Day: Simple Moving Average
|
||||||
|
|
||||||
|
200-Day: Simple Moving Average
|
||||||
|
|
||||||
|
[](https://preview.redd.it/2s6vhg50tmu61.jpg?width=8001&format=pjpg&auto=webp&s=0604e9838561e30891b13bb8e0f39c9d9d500b25)
|
||||||
|
|
||||||
|
GME has been on a clear uptrend with strong support levels that have recently been tested and proven strong.
|
||||||
|
|
||||||
|
[](https://preview.redd.it/ufta29u06nu61.jpg?width=8000&format=pjpg&auto=webp&s=68022a3ae76c970624a983f182fd707f1149d15b)
|
||||||
|
|
||||||
|
So we know GME is on a clear uptrend and has strong support levels. This should continue as long as ape hold banana.
|
||||||
|
|
||||||
|
GME is currently low volume, sideways trading:
|
||||||
|
|
||||||
|
We're currently stuck in low volume low price movement, boring days. But look what happens at the end of those boring periods. The price goes *BRRRRRRRRRRRRRRR!*
|
||||||
|
|
||||||
|
[](https://preview.redd.it/z6ubg4viumu61.jpg?width=8000&format=pjpg&auto=webp&s=a6a3300503665b97494ef2d7a1e374f3c1522104)
|
||||||
|
|
||||||
|
Each time it looks like there's more force behind it.
|
||||||
|
|
||||||
|
Moving Average Convergence Divergence (MACD)
|
||||||
|
|
||||||
|
This is an indicator I use to show me when a price trend *should* reverse. The bullish or bearish trend will reverse and the price will move in a new direction.
|
||||||
|
|
||||||
|
[](https://preview.redd.it/schhxzk0xmu61.jpg?width=8000&format=pjpg&auto=webp&s=ab3ec05fc9a90592680b776e2ba38ef17c0c8588)
|
||||||
|
|
||||||
|
Here's a closer look at the MACD Line (Black) converging the Signal line (Red)
|
||||||
|
|
||||||
|
[](https://preview.redd.it/fzbkwzqzxmu61.jpg?width=8001&format=pjpg&auto=webp&s=5d7d4c3f5b7f7c7a5c205421703ae75356dfa87f)
|
||||||
|
|
||||||
|
GME appears to be approaching a divergence point!
|
||||||
|
|
||||||
|
Parabolic Stop and Reverse (ParabolicSAR)
|
||||||
|
|
||||||
|
This indicator puts a dot above or below the candles and will flip to a new side in a reversal. We just flipped to bullish 3 days ago!
|
||||||
|
|
||||||
|
[](https://preview.redd.it/y92eymdhymu61.jpg?width=8001&format=pjpg&auto=webp&s=5dcca3129632f68cde44f41e0140bae8c1de8cc0)
|
||||||
|
|
||||||
|
All of my indicators are telling me it's time for the price to reverse and go up. Here's the coolest part in my opinion, when I actually zoom all the way out to a year the force behind the price movement appears to be incredibly strong.
|
||||||
|
|
||||||
|
[](https://preview.redd.it/pkjunk790nu61.png?width=3104&format=png&auto=webp&s=c22b7eed87f1bed3c234134a6a3ed50924261c51)
|
||||||
|
|
||||||
|
I actually believe the price can go to $10,000,000 as long as enough retail HODL!
|
||||||
Loading…
x
Reference in New Issue
Block a user