Stage three – Portfolio Management: The Key to Success:
Common Shark Language that is used on the Shark Investing Website.
This term represents a stock that has the following characteristics: stock is in an uptrend, is seeing good accumulation, and is above its 50dma.
This term represents a stock that has the following characteristics: Stock is in a downtrend, seeing a negative reaction to good news, its chart is seeing distribution, and the stock is below its 50dma.
A fancy word for ‘selling pressure'. When a stock's volume pattern is selling heavy selling pressure and the buying interest is low.
Volume is one of the most important aspects that we use while trading. It revolves around supply and demand. When heavy volume is coming into a stock it usually signifies that a fund is looking to pick up shares, and that a possible change in character for the stock is occurring.
Support levels tend to be areas in a stock that seem to get constant buying when the level is touched more than a couple of times. As the price touches this level it's more likely to catch itself than break through it. These are key levels to look for, as many prudent entry points can be found near support.
Resistance is an area where a stock has trouble getting through a particular price level. With that being said, these levels are important to watch, because when they are taken out with volume, the price usually will move higher.
When a stock has built a trading range and has defined a support level.
When a stock is a creating base in between support and resistance levels.
When a stock makes a big run and fades lower on lighter volume.
Trades that normal occur in a short period of time lasting from a day or two to a couple of weeks.
A stock that begins to stabilize is one that has faltered in the past, and has attempted to stop going down in price. This process usually occurs as the stock's price begins to create a tight trading range.