AAPL Apple Inc. is a buy on the weekly and daily charts but received a downgrade today.
This should make for two-way volatility because someone will be caught on the wrong side of the order flow.
AAPL Downgrade Game Plan plus 3 More Chart Lessons
$NKE bullish on the longer time frame with two inside weeks in a row. This is setting up a trend day for a day trader to the long side. Be patient for the breakout.
$CAT a bear flag below long-term resistance looks like a good sell-short here. This is a clean swing trade set up
$CVX had a good bullish trend day yesterday but long-term bearish trend. This is not a long, this scenario is a good scenario to make note of. It is a trade many inexperienced traders get long with no edge.
Put this one in your trading journal as a lesson for a trade to avoid.
It will be interesting to see how the AAPL downgrade plays out against bullish technical analysis on the charts.
An AAPL downgrade Versus a Technical Trade Setup
Which edge do you trade?
The answer should be found in within your strategy and trading plan.
Trading news is a different concept than trading the charts. New traders should not be trying to interpret the news. It is a skill that takes along time to learn and can wreak your confidence.
As you progress and become consistent, this means you have rules and are following them. Starting off with the charts makes sense. You can easily identify significant chart patterns and reference points for profit targets, entries and exits.
Trading a news catalyst along with the charts is a different story. The news catalyst would create an expectation of volatility, but not necessarily a directional bias.
A catalyst like this will help you find stocks-in-play while your charts would help you define the parameters for the trade.