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Let's continue to lay down some of these key foundational concepts.
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Now, if you've got a good handle on it, you understand how to reach those kind of things and you just
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want to jump ahead to a certain section, feel free.
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That's OK.
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That's no problem at all.
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But let's talk about some more of the real key foundational things.
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And I like to think about that.
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There's these different tools and things that you can use.
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And a lot of Murphree out there, too, are these platforms you can you can actually use for free.
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And through we demonstrate through the course, everything I'm using is something that you can do and
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replicate yourself for free, by the way.
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But if we think about it, you can almost think of like like an artist, for example, like the Shah
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of the canvas that they paint on.
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Well, that's a chart, right?
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That's where you're looking at the prices and some of the charts and things we saw.
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So that's the overall chart.
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And then how you interpret or read that chart is where you use tools, just like an artist might, you
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know, paint with a paintbrush to kind of, in effect, make it come alive.
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We use tools like that and technical analysis, price bars, candlesticks, lines and trendlines, indicators
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like moving averages, volatility indicators, momentum indicators, all sorts of different types of
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things we're going to learn about in the course.
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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
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going to help me decide what to do.
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So let's start by looking at the chart and understanding what a chart is.
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Think of it as that blank canvas and you pull up a security and then fills in your chart and now you
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can start interpreting, but you have to be able to read a chart, too.
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So let's walk through, you know, how to read a chart again.
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If you're familiar with how to read a chart, skip ahead.
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But it's I think it's a good foundational exercise.
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So let's look at a chart here.
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This happens before a company called Xcel Energy, but it could be a chart for Bitcoin or anything.
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It could be any kind of chart.
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But I have to use this one for demonstration purposes.
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Now, first, you might look at this and say I might scream and say that's a lot of information.
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I have no idea what's going on.
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Seems pretty complex to me.
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Don't worry about it.
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We're going to walk right through all the different components and as we go through the course and give
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you lots and lots of examples, and you'll say to yourself at the end of the course, boy, I am an
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expert at reading charts and so many different ways, so no worries, you'll be able to understand.
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So let's walk through the different parts of a chart here so you can kind of get a feel for, you know,
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for how that works and the different parts.
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So first off, if you see at the top here, you know, that's just the name of the symbol.
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Again, it could be a stock.
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It could be the currency, it could be Bitcoin, Ethereum, whatever.
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You know, it's basically the name of the security that you're looking at.
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You know, it's like a shortened form.
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But if you put in the full thing, the program will automatically pull up.
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If I put an Excel energy, you would have likely pull up.
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I would have to memorize the symbol, but it does that, too.
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And then the period, you know, this is looking at daily prices.
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So when you look down, the chart is give me daily and you can see there's a little bit of information,
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but Excel with an open price was once high, was that kind of stuff.
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So that's the kind of basics to get it started on them.
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If you look down at the chart itself, you know, I put some letters around as we walk through these
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different areas.
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So we you'll see on a chart is on the right hand side, sometimes on the left, but typically on the
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right hand side, you're going to see where the letter either you're going to see the price.
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Right.
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So this represents a range of prices that this security has ranged over over this period of time.
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And, you know, some highs and lows above that, too, as well.
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But you can look across horizontally and look at a certain price point and see, you know, well how
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much, you know, when was it trading at this price point.
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So that's the right hand side or the vertical axis would be the price on the bottom, on the horizontal.
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And you can see the letter B there to the left would be the time frame and time ago from left to right.
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So farther back in time would be like to the left and more near time would be to the right.
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So I'm not sure how many days this was, but let's say it's, you know, 50 days, 50 days back would
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be to the far left and yesterday would be to the bar to the most recent far right there.
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So it gives you an idea of time as far as when the Intersect, you know, as far as time and price,
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what the security was trading for at that particular time.
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So if you look at, let's say, letter C, you can see that's like around the range, somewhere around
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the sixty six sixty seven dollar mark there.
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You can see we'll learn about Candlestick, but it represents the high priced and low price of the day.
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But that individual bar there, that's the long kind of empty bar there with the white in it.
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That's a price bar that would show you the price for the day.
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You can probably see to the right there were some of the bars are turning red.
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That just means that those prices are at those levels.
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But they were they were down.
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They were going down from there.
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They're opening.
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They opened higher and then they closed lower.
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Don't worry.
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We'll learn all about that.
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But the idea is each of those little individual bars represent price.
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And then if you look at, let's say, a letter D, you can see this is basically representing the whole
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chart, but basically you can see from left to right how prices move up and down over this period.
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Right.
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Let's think of the whole chart as a whole, you know, looking at it from left to right and you see
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all the ups and downs, peaks and valleys.
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If you look at letter E, what that will usually represent on the bottom, there is volume.
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How much are people trading?
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How many active people are trading the stock buying and selling?
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It tells you some days they're trading more frequently than others.
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You'd look to the right, for example, of these little bars.
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You see where they're taller in some cases towards the right.
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That means there's more trading volume than on other days where the bars are shorter.
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As technical analysis go, that actually tells us things that when there's a lot of volume that that
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means something's happening.
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And we'll talk about that as we go through the course.
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But that's something to note as far as with volume.
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And you'll see that on a chart.
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A lot of times on the chart you'll see, like with the letter F, you'll see things that are overlaid
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over it.
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Typically, you would just see the price bar, the price peaks and valleys, but you can overlay things
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over the top of that.
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To give you an idea of something like in this case, we've overlaid these lines that represent a 50
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day moving average is the blue one or kind of purplish and the pink one or reddish is the 200 day moving
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average.
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Got a whole section of moving averages is a great indicator.
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But basically you're looking at what's the price been averaging over the last 50 days or the last two
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hundred days.
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That's where the lines have different looks to them.
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And when a price bar crosses over the line, crosses over your individual prices, that can tell you
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something, whether to buy or sell or if the two bars or the tuzman, the two lines cross each other,
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that can tell you something to.
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For now, all you need to know is that there are things that you can overlay over your chart that you
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going to learn all about that you can use to help as far as deciding whether to buy or sell.
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And then, gee, is kind of like a where you can add things on the top or bottom of charts depending
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on your software or platform you use.
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This one just happens to be an RSI or relative strength indicator.
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Have a lesson on that.
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No worries.
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And it just tells you gives you some additional level of vindication whether you should buy or sell
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you.
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You look to the left there of the kind of long plane line there.
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You might see where peaks above the 70 number.
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That's not the price, by the way.
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That's a different kind of representation that we'll learn about.
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But you can see where peaks above that 70 number, and it's kind of great in there.
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That's where it's telling us that this might be a time to sell.
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And if we look down straight down from that, like the great part, we can see it really our prices
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started to really peak there, Redbrick, kind of where the letter D is there and then started to turn
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and go down.
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Right.
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So if we look to use this relative strength indicator, we could kind of confirm or look and say, you
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know what, we've had a nice run up in prices all the way from the left to the right, getting a little
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high.
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Now, this relative strength in the Keter, which is an indicator we can use that's based on math and
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technical analysis, is telling us, hey, we might want to watch this, we might even want to sell
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because we could be running out of steam and time to sell.
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And you could see how they kind of match up together and they actually went down.
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In fact, if you keep going down further, you see that little spike in volume there.
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That can be an indicator saying a lot of people are thinking the same thing and maybe looking to start
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thinking about getting out of this particular security.
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So this is where they can kind of all work together.
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So the idea of a chart, you know, if you if it still seems a little confusing to you, no worries.
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When we go through the course, I'm going to show you charts.
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I'm going to show you things on a walk right through, and they'll become even more easy to understand
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as we go through for kind of an extra credit or whatever we can say.
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If you look at this example chart, what might it be telling you?
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And let's just concentrate on the right hand side.
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There were these big, long, red bars are more towards the right there.
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What is the kind of you have a feel for what it might be telling you?
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What's happening with the price?
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Is that going down?
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Is it going up?
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Is it going up sharply?
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Is there a period where you might be going down sharply?
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And if you look closer to it as you learn to read about charts and don't worry if you don't get it,
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yeah, no worries at all.
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But just look at and say, OK, here, if I look at this period, boy, that really went down right.
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It started OK, pretty high around seventy four and then went real steeply down those long red lines
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and then went, kept going down, down, down.
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Look at all those red days in a row, a lot of volume in the bottoms.
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A lot of people are selling the, the kind of you know, went sideways a little bit and then kept going
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down again.
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Right.
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So you can kind of learn from that as far as what's going on as well.
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We'll learn about trends and things, but we'll learn why is that happening?
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How can we dissipate and how can we, in fact, either avoid it or take advantage of it?
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If we look to the right of where I've kind of highlighted there, you can kind of see where it's kind
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of stayed in a narrow trading range.
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We would call where it's not gone up a lot, not gone down a lot.
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It just keeps bouncing up and down.
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So the range looks to be around sixty four dollars and sixty six dollars and fifty cents.
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And the current price there on the right that I'll highlight in black.
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When you look at a price chart, by the way, you'll see sixty six 02 is the current trading price.
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Now do you buy the ACEL, do you do nothing.
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Well that's what we'll learn about in the.
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But if you think about it, just kind of just kind of common sense wise, you could say, well, if
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I'm in this trading range of sixty four dollars to sixty six fifty, and right now I'm at sixty six
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point zero two, there's not a lot of room to go up.
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In fact, there might be more downside risk than upside gain.
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So that might be one way you can certainly look at it as well.
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So reading charts or admiring the artist's canvas and you're the artist.
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Not a hard thing.
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And as we go through the course again, you'll learn that you'll be comfortable with it and you'll love
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it because you're going to be looking at charts all the time and making great decisions using those
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charts.
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And the tools and indicators are going to learn throughout the course.
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