eMini Bull Bear Trading StrategyBasics of Charting

Bar Charts (Open, High, Low, Close) How To Draw a Trend Line Moving Averages (5O MA & 200 MA) Moving Average Crossovers How To Determine the Trend How To Determine the Counter Trend Support & Resistance (Major and Minor)

An open-high-low-close chart (also OHLC chart, or simply bar chart) is a type of chart typically used to illustrate movements in the price of a financial instrument over time. Each vertical line on the chart shows the price range (the highest and lowest prices) over one unit of time, e.g. one day or one hour.

Tick Marks project from each side of the line indicating the opening price (e.g. for a daily bar chart this would be the starting price for that day) on the left, and the closing price for that time period on the right. The bars may be shown in different hues depending on whether prices rose or fell in that period.

A trend line is formed when you can draw a diagonal line between two or more price pivot points. They are commonly used to judge entry and exit investment timing when trading.

It can also be referred to as a dutch line as it was first used in Holland

Given a series of numbers and a fixed subset size, the moving average can be obtained by first taking the average of the first subset.

The fixed subset size is then shifted forward, creating a new subset of numbers, which is averaged.

This process is repeated over the entire data series. The plot line connecting all the (fixed) averages is the moving average.

Thus, a moving average is not a single number, but it is a set of numbers, each of which is the average of the corresponding subset of a larger set of data points.

A moving average may also use unequal weights for each data value in the subset to emphasize particular values in the subset.

In statistics of time series, a simple moving average (SMA) crossover results from plotting two moving averages each based on a different period.

The moving average formed by the shorter of the two periods is called the "fast" moving average, and the moving average formed by the longer period is the "slow" moving average.

As changes in price occur over time, the "fast" moving average reflects these changes by moving upward or downward with the price quicker than does the "Slow" moving average.

As a result these moving averages crossover each other. This crossover can be used to signal a change in trend and

can be used to trigger a trade.

When establishing trend lines it is important to choose a chart based on a price interval period that aligns with your trading strategy.

Short term traders tend to use charts based on interval periods, such as 1 minute.

Longer term traders using price charts based on hourly, daily, weekly and monthly interval periods.

A support level is a price level where the price tends to find support as it is going down.

This means the price is more likely to "bounce" off this level rather than break through it.

However, once the price has passed this level, by an amount exceeding some noise, it is likely to continue dropping until it finds another support level.

A resistance level is the opposite of a support level. It is where the price tends to find resistance as it is going up.

This means the price is more likely to "bounce" off this level rather than break through it.

However, once the price has passed this level, by an amount exceeding some noise, it is likely that it will continue rising until it finds another resistance level.