Sourced via: Pinterest

The biggest misconception in trading is that professionals have access to better indicators. They don’t. They simply know what questions to ask.

🧠 The Indicator Trap

Almost every trader starts in the same place.

You open TradingView, click on “Indicators,” and discover thousands of options: RSI, MACD, Bollinger Bands, Supertrend, VWAP, ATR…the list goes on.

The natural assumption is that somewhere in that library is the indicator that consistently predicts where price will go next.

So you start experimenting.

One indicator becomes two. Two become five. Before long, your chart resembles the cockpit of an airplane—full of colorful lines, oscillators, and buy/sell signals that rarely seem to agree.

I know because I went through the exact same process.

Eventually, I realized something that completely changed how I approached markets:

Indicators don’t create an edge. They organize information.

Once I understood that distinction, I stopped searching for the “perfect indicator” and started building a trading framework instead.

📊 What an Indicator Actually Is

At its core, an indicator is simply a mathematical calculation built from market data.

Most technical indicators are derived from price, while others incorporate volume, time, or a combination of inputs. The important point is that indicators don’t possess hidden information, they organize data the market has already produced.

Think of driving a car.

Your speedometer tells you how fast you’re traveling right now. It doesn’t tell you whether you’ll hit traffic five miles down the road.

Indicators work much the same way.

They describe current or historical market conditions. They don’t predict what price must do next.

That distinction is one of the most important concepts a trader can learn.

❓ Every Indicator Answers a Question

Today, I rarely ask:

“Should I add RSI?”

Instead, I ask:

“What information am I missing?”

Every indicator is designed to reduce uncertainty around a specific aspect of the market. Before adding one to your chart, ask yourself what question you’re trying to answer.

If you’re wondering:

• Is the market trending, or just moving sideways? Moving averages can help identify the broader trend.

• Is momentum strengthening or fading? Indicators like RSI or MACD can help gauge whether momentum is accelerating or slowing.

• Is today’s move backed by conviction? Volume can show whether buyers and sellers are participating in meaningful size.

• Where has the average participant transacted today? VWAP provides a reference point that many institutional traders watch during the trading session.

• Is my stop loss realistic for today’s market? ATR helps estimate the asset’s typical trading range so you can set stops and profit targets that better reflect current conditions.

None of these indicators tell you what will happen next.

They simply provide another piece of information to help you make a more informed decision.

⚠️ Why More Indicators Usually Make Trading Harder

One of the biggest mistakes I see beginners make is stacking multiple indicators that measure nearly the same thing.

For example:

• RSI

• Stochastic RSI

• MACD

• Momentum

Although they look different, they’re all measuring some aspect of momentum.

If all four agree, that doesn’t necessarily mean you’ve found four independent confirmations.

More often, you’ve found one confirmation repeated four different ways.

Adding indicators can create the illusion of certainty without actually improving your decision-making.

🧩 My Framework

Personally, I think of trading as a pyramid.

Level 1 — Market Structure & Price Action

Everything begins with price.

Where are buyers likely to step in?

Where are sellers likely to become active?

Is the market trending, ranging, or transitioning?

More importantly, how is price reacting once it reaches those areas?

Price action tells me whether buyers or sellers are actually taking control. Without understanding structure and price action, every indicator becomes far less useful.

Price action is simply the study of how price behaves over time. Rather than relying on indicators alone, traders watch how candles form, how quickly price moves, where it stalls, and whether buyers or sellers appear to be taking control.

Read more

*Photo sourced from Pinterest & reformatted

If you’re new here, this article is part of a larger series Trading Foundations: Your Starting Point, a series I put together to help you build a real framework for reading markets. Start there if you want the full picture.

🧭 Why This Matters

Most beginners enter trades after the move has already happened.

Chart patterns help you:

• Recognize when price is building pressure

• Anticipate where it’s likely to move next

• Position before the breakout instead of chasing it

This is how trading becomes proactive, not reactive.

🧱 What Are Chart Patterns?

Chart patterns are simply repeating structures in price.

They show:

• Where buyers and sellers are in balance

• When that balance is starting to shift

You’re not predicting the future, you’re recognizing when a move is setting up.

🔍 The Price Structures That Actually Matter

Keep this simple. Focus on three:

1. Consolidation (Range)

• Price moves sideways between support and resistance

• Signals indecision → often leads to expansion

2. Higher Lows Into Resistance (Ascending Pressure)

• Buyers are stepping in earlier each time

• Pressure builds beneath resistance

3. Lower Highs Into Support (Descending Pressure)

• Sellers are stepping in sooner

• Pressure builds above support

⚡ What Is A Breakout?

A breakout is when price:

• Moves through a key level

• With momentum and participation

Not all breaks are equal.

A valid breakout typically:

• Moves quickly

• Holds above (or below) the level

• Does not immediately reverse

❗ Most Common Mistake

Entering after the breakout candle.

This is where:

• Risk is highest

• Reward is lowest

The goal is to identify the level before price breaks through it, not scramble to enter after it already moved.

Instead of “oh no, it broke, and now I feel FOMO so maybe I’ll enter here”, you want to be thinking “this looks like it’s building toward a break above x level. Let me figure out my plan for when that happens.”

🧩 How To Actually Trade This

Step 1: Identify the Pattern

• Is price consolidating?

• Are highs getting tighter?

• Are lows getting higher?

Step 2: Mark The Key Level

• Resistance for upside breakout

• Support for downside breakout

Step 3: Wait For The Break Or Retest

• Break → momentum entry

• Retest → more conservative entry

Step 4: Define Risk

• If price falls back into the range, the setup is invalid

📍 What You Should Be Watching

When a pattern forms:

• Volume (is participation increasing?)

• Speed (is price accelerating?)

• Structure (is it holding above/below the level?)

These tell you if the breakout is real or weak.

🔑 Simple Rule

The tighter the range, the stronger the breakout tends to be. Think of it like a coiled spring. The more compressed, the more explosive the release.

🧵 Where This Fits Into The Bigger Picture

Chart patterns build on everything before this:

• Support & resistance → defines the levels

• Patterns → show pressure building at those levels

• Breakouts → show when that pressure releases

This is how you start seeing setups instead of random price movement.

🪞 Closing Thought

Good traders don’t chase moves.

They recognize when a move is about to happen, position before the crowd reacts, and stick to their gameplan.

Always in your corner.

— Sunny

Disclaimer

This content is for educational and informational purposes only. Nothing shared should be considered financial advice. Always do your own research and speak with a licensed financial professional before making investment decisions. Trading and investing involve risk, and you should never risk more than you can afford to lose.

*Image sourced from Ayzen (Pinterest) and remixed

If you’re new here, this article is part of a larger series Trading Foundations: Your Starting Point, a series I put together to help you build a real framework for reading markets. Start there if you want the full picture.

🧱 What Are Support & Resistance?

• Support = a price area where buyers tend to step in

• Resistance = a price area where sellers tend to step in

Think of it as:

• Support → price finds a floor

• Resistance → price hits a ceiling

But more importantly: these levels represent psychology + positioning, not just price.

🧠 Why Price Respects These Levels

There are 3 main forces behind this:

Memory

• Price tends to react at areas where it previously reversed

• Retail traders remember these levels

But more importantly:

• Institutions target these same areas because they contain liquidity, orders, and positioning

These are why reactions repeat. Not just because of memory, but because these are the areas where large players can actually enter and exit positions.

Positions

• Traders who entered at a level often react when price returns to it

• Buyers may buy again or hold their positions when price revisits their entry

• Sellers may short again or add to their positions at the same level

This often creates repeated buying or selling pressure in the same areas, which is why price often reacts there again

Liquidity

• Large players cannot enter or exit positions anywhere. They need enough volume to fill their orders

• These key levels (highs, lows, support, resistance) are where the most orders are concentrated

This is why institutions focus on these areas because it’s where they can actually execute large positions without moving the market too much.

For example, if they want to sell 2,000 shares, there needs to be enough buyers on the other side to take that trade.

📍 Support & Resistance Are Zones, Not Lines

One of the biggest beginner mistakes is treating levels like exact numbers.

In reality:

• Price rarely turns to a perfect line

• It reacts within a range / zone

So instead of drawing a single thin line, think in terms of a small area where reactions occur. This shift alone improves accuracy significantly.

🔍 How To Identify Key Levels

Start simple. You don’t need anything complex.

Here’s exactly what to do:

Step 1: Mark Obvious Turning Points

• Go to your chart

• Look for areas where price clearly reversed (sharp move up or down)

• Draw a zone around that area (not a thin line)

Step 2: Identify Prior Highs & Lows

• Mark the most recent swing high (where price stopped going up)

• Mark the most recent swing low (where price stopped going down)

These are your first levels.

Step 3: Find Consolidation Before Big Moves

• Look for areas where price moved sideways, then made a strong move

• Mark the base of that move

This is often where institutions entered.

Step 4: Turn Lines Into Zones

• Don’t mark exact prices

• Expand your level slightly into a range

Price reacts in areas, not perfect lines.

Step 5: Ask This One Question

“Where did price move aggressively from?”

That’s your level.

What You Should See

When you do this correctly:

• Price will often bounce from your support zones

• Price will often reject from your resistance zones

• Broken levels will often get retested

If you have to “force” a level, it’s not a level. The best ones are obvious, and you should be able to see them in a few seconds.

🎯 What This Actually Means For You

Support & resistance are not signals to blindly buy or sell.

They are:

• Decision zones

• Areas where you wait for confirmation

• Places where risk can be defined more clearly

Instead of chasing price, you start thinking:

• “If price comes here, what will I do?”

• “Is this a bounce or a break?”

This is how trading becomes intentional instead of reactive.

🧩 A Simple Framework To Follow

When price approaches a level:

1. Pause - don’t enter immediately

2. Observe reaction - is price rejecting or pushing through?

3. Wait for confirmation - structure, momentum, or continuation

4. Then act - not before

🧵 Where This Fits Into The Bigger Picture

Support & resistance alone are not enough, but they are the foundation for everything else:

• Trends

• Breakouts

• Supply & demand

• Entries & exits

If you can’t identify where price is likely to react, nothing else will feel consistent. Start with support and resistance.

🪞 Closing Thought

Trading is not about predicting, it’s about recognizing where decisions are likely to happen, and positioning yourself accordingly based on your risk tolerance.

Support and resistance are where those decisions live.

Tools For Trading

📊 Trading View — My go-to platform for clean and intuitive charting and analyzing the market. It’s where I mark key levels, track price action across timeframes, and build my trade ideas.

✨ Alpha Futures — A prop firm I use to access additional capital and trade funded accounts. Provides a structured way to scale your trading without risking all of your own capital, but comes with strict drawdown rules and tight risk limits. I only recommend this if you already have a defined strategy and can manage risk consistently.

Unlock More Market Insights

📖 Trading Foundations: If you’re newer, start here. It’s a clear breakdown of how I think about markets, risk, and building consistency.

📈 ES Intraday Trading Framework — A simple breakdown of how I identify levels, structure trades, and think through execution.

📚 Free Options Swing Trading Guide — Your roadmap to smarter swing trades.

🤝 1:1 Strategy & Thinking Sessions — For those who want personalized guidance on:

• Trading

• Investing

• Portfolio structuring

• Building a life aligned with this path

Email: sunnywu915@gmail.com

Always in your corner.

— Sunny

Disclaimer

This content is for educational and informational purposes only. Nothing shared should be considered financial advice. Always do your own research and speak with a licensed financial professional before making investment decisions. Trading and investing involve risk, and you should never risk more than you can afford to lose.

If you've ever looked at a chart and felt like you were trying to read a language you hadn't quite learned yet, you're not alone. Understanding the "flow" of the market isn't about memorizing every pattern, it's about knowing how price reacts to structure and what that tells you about the psychology behind every move. I’ll break down everything that I know on trend below.

🔄 What is a Trend?

A trend is simply the market moving in a general direction over time. But knowing the definition isn’t enough — you need to be able to spot one on a chart instantly.

• Uptrend: Higher highs and higher lows.

  • Each rally goes a little further than the last, and each pullback holds above the previous low. The market is essentially “stair-stepping” upward.

• Downtrend: Lower highs and lower lows

  • Each bounce gets rejected before the previous peak, and each drop undercuts the previous low

• Sideways/Range-bound: No clear direction, price oscillates within a band.

  • Aka price bounces between a ceiling (resistance) and a floor (support) without making meaningful progress either way.

You want to trade with the trend when possible, not against it. The trend is your guide to knowing when to be aggressive and when to be patient.

Tip: Zoom out to the weekly or daily chart and ask yourself — is this thing going up, down, or nowhere (choppy)? If you can’t tell immediately, it’s probably choppy. And choppy markets are where beginners get chopped up and lose money.

🔻 Spotting a Healthy Pullback

A healthy pullback is when price temporarily moves against the trend, but doesn’t break it. Think of it as the market catching its breath before continuing in the same direction.

This is actually where the best swing trade entries live. You don’t want to chase a move after it’s already gone parabolic. You want to wait for it to pull back to a key level and show you it still has legs.

• In an uptrend, you want the pullback to hold at a prior resistance level that’s now flipped to support. This is a level where price previously struggled, but once it broke through, that same level should now act as a floor. If buyers show up there again, that’s your signal.

• In a downtrend, you want rallies to get rejected at a key resistance level. This could be a prior support that’s flipped, a prior swing high, or simply a level where sellers have shown up before. The point is you’re looking for the rally to stall and reverse, confirming the downtrend is still intact.

What does a healthy pullback look like in practice? Imagine SPY (S&P 500) has been trending up for three weeks — higher highs, higher lows. It pulls back to a level where it bounced two weeks ago. Volume starts drying up on the down days. Then one morning you get a strong green candle with volume picking back up.

That’s your moment to start looking for an entry. Price has returned to a key level, sellers are losing steam, and buyers are stepping back in. You’d wait for that strong candle to close, confirm your stop below the level, and enter the trade.

What does an unhealthy pullback look like? Price crashes through your level with force, volume spikes on the way down, and it keeps going. That’s not a pullback — that’s a potential reversal.

Swing traders: I often wait for 1-hour, 2-hour, or 4-hour pullbacks to align with the trend before entering. Those are sweet spots for catching momentum while managing risk.

⚡️ Momentum: When the Market Pushes

Momentum is what happens when price breaks away from a level with conviction. Instead of a slow grind, it’s a decisive move that tells you one side is clearly in control.

Read more

When I first started trading, chart types and timeframes were one of the many things that felt overwhelming. I knew they mattered, but I just didn’t know how much or what I was supposed to focus on. It felt like yet another layer of complexity on top of everything else I was trying to learn.

But once I started understanding the basics, it got a lot simpler. Just like any type of analysis, the chart type and timeframe you choose are really just the lens you’re looking through, and choosing the right lens makes it way easier to see what’s actually happening with price.

📊 Chart Types

1️⃣ Candlestick Charts

• The most popular chart type for active traders (and what I use 99% of the time).

• Each “candle” shows:

  • Open

  • Close

  • High

  • Low

Read more

*Left: Warren Buffett. Right: George Soros.

Welcome to Module 1, Part 3 of Trading Foundations: Your Starting Point, a 4 part accelerator series to help you understand how to read price, trends, and momentum.

Most people start trading by asking:

What’s the best setup? What’s the best strategy? What stock should I trade?

But a more useful first question might be:

What kind of trader do I even want to be?

There’s no single “right” way to trade. And what works for someone else, whether it’s a full-time trader with $250K or a part-time side hustler with $2K, may not work for you. Your ideal trading style should fit your personality, your schedule, and your finances.

It should also fit your tax situation and your energy bandwidth. Some styles require you to be glued to the screen all day. Others don’t. Some styles are more capital-intensive. Some rack up more short-term taxes.

This post walks through the four most common types of traders, and ends with something most people skip over: how to choose your starting point in a way that sets you up to succeed.

🧠 1. Scalping

• Timeframe: Seconds to minutes

• Capital needed: ~$2,000–$25,000+ depending on market (see below)

• Tax impact: 100% short-term capital gains

• Best fit for: Process-driven, fast thinkers with high discipline

Scalping is the fastest and most intense trading style. You’re entering and exiting quickly, sometimes in seconds, trying to capitalize on tiny price movements. It’s all about speed, precision, and repetition.

This style demands full concentration and emotional detachment. You’re making fast decisions under pressure, often without time to second-guess.

Personality fit: Scalping suits people who are highly focused, decisive, emotionally steady, and comfortable under pressure. If you’re easily distracted or tend to overthink, this probably isn’t your style.

Capital Needed:

• Stocks: $25K+ to avoid PDT rule; under $25K = very limited

• Options: $2K–$10K (but spreads and slippage are risky)

• Futures: $500–$2K+ using micro contracts (MES, MNQ) or prop firms like TopStep (this is highly recommended to get practice in before risking your own capital)

Most traders are better off building skills on slower timeframes before attempting scalping. This is a style you grow into, not one you start with.

⚡ 2. Day Trading

• Timeframe: Minutes to a few hours

• Capital needed: ~$5K+ recommended (more for options or PDT flexibility)

• Tax impact: Short-term gains

• Best fit for: Focused, analytical people with flexible schedules

Day trading is slightly slower than scalping, but still requires you to be fully present during market hours. Trades are opened and closed the same day, avoiding overnight risk.

Personality fit: Suits those who enjoy analyzing patterns, reacting to price action, and want the structure of daily trading with a defined “clock-out” time.

Capital Needed:

• Stocks: Ideally $25K+ (to avoid PDT limitations)

• Options: $3K–$10K for flexibility with spreads and scaling

• Futures: $1K+ if trading micros; higher for full-size contracts

Day trading offers clean start then end sessions, but it does require capital to manage risk well. Stocks and options accounts under $25K are subject to the Pattern Day Trader rule, which limits active trading unless you’re using a cash account.

One way around PDT: trading futures (like ES, MES, NQ), which aren’t subject to PDT restrictions. That makes them popular for day traders looking for more flexibility with smaller accounts.

⏳ 3. Swing Trading

• Timeframe: Days to weeks

• Capital needed: Flexible (can start with <$1K)

• Tax impact: Short-term gains unless held >1 year

• Best fit for: People who want flexibility without daily screen time

Swing trading is one of the most accessible styles for newer traders. You’re holding positions across several days or weeks, aiming to catch trend-based moves.

It’s great if you want to trade part time, still focus on quality setups, and give your trades room to develop without constant monitoring.

Personality fit: Suits thoughtful, patient people who prefer planning over reacting—and want to avoid burnout or overtrading.

Capital needed:

• Stocks: Can start with as little as $500–$1K using fractional shares

• Options: $2K–$5K recommended

• LEAPs & premium strategies: $5K+ ideal

🔭 4. Position Trading / Long-Term Investing

• Timeframe: Weeks to years

• Capital needed: Flexible, though more helps with option-selling strategies

• Tax impact: Eligible for long-term capital gains (lower tax rate after 1 year)

This style is rooted in conviction and longer-term thinking. You’re holding positions based on fundamentals, macro trends, or valuation, and possibly layering in LEAPs, covered calls, or cash-secured puts if you have the capital.

It’s lower maintenance, but still requires clarity and commitment. You’ll experience drawdowns, market volatility, and narrative shifts, and need to hold steady through all of it.

Long-term positions offer the most tax efficiency, and the most psychological resilience.

Best for you if: You prefer zoomed out thinking, want to reduce screen time, and care more about wealth building than market timing.

Capital needed:

• Buy-and-hold stocks: Any amount (even <$100 with fractional shares)

• Cash-secured puts or covered calls: $5K–$50K+ depending on ticker

• Tax impact: Long-term capital gains eligible after 1 year (lower tax rate)

• Best fit for: Strategic thinkers focused on wealth-building over time

Long-term strategies don’t require a big account to get started—but the more capital you have, the more tools you can use (like selling options for income).

🔁 The Strategy: Start Slow, Then Scale Into Speed

There’s a lot of hype around fast paced styles like scalping and day trading. They feel exciting, and the potential for quick wins can be tempting. But for most people, that speed is also where mistakes compound.

What I’ve found for myself and many others is that it’s much easier to build confidence and consistency when you start slower and more structured.

That’s exactly how I approached it.

I started with long term investing, then layered in swing trading once I understood price action and risk management. Because I focused on higher timeframes first, I was able to become consistently profitable early on without getting overwhelmed by the pressure of rapid decisions or overtrading.

Only now am I exploring day trading methods with a stronger foundation already in place.

POV: If you can’t manage a trade over 3 days, it’s unlikely you’ll manage one that lasts 3 minutes.

Here’s a progression that tends to work well:

1. Start with long-term or swing trading

   You’ll build core skills like chart reading, patience, and emotional control without constant noise.

2. Add in day trading when your process feels consistent

   By then, you’ll have the structure to make faster decisions without rushing.

3. Explore scalping only if it truly fits your style

   Scalping isn’t just fast, it’s incredibly unforgiving. It’s not the starting point. It’s an advanced rhythm that only works if everything else is already dialed in.

Start slow. Grow your edge. Let consistency come before speed.

💸 One Last Note on Finances

Some strategies sound great in theory, but don’t make sense for where you are right now.

For example:

• Selling a cash-secured put on SPY requires ~$45K in capital.

• Day trading with under $25K in a U.S. margin account may trigger the PDT rule.

• Making 300 trades a year? That’s 300 short-term gains taxed at your ordinary income rate.

The best trading style isn’t the one that looks the most advanced. It’s the one that’s sustainable.

Pick the one that fits you, not just your goals, but your reality.

Always in your corner.

xx, Sunny

Disclaimer

This content is for educational and informational purposes only. Nothing shared should be considered financial advice. Always do your own research and speak with a licensed financial professional before making investment decisions. Trading and investing involve risk, and you should never risk more than you can afford to lose.

Welcome to Module 1, Part 2 of Trading Foundations: Your Starting Point, a 4 part accelerator series to help you understand how to read price, trends, and momentum.

There’s a lot of lingo, and it’s easy to feel behind when you hear things like “BOS,” “RR,” “pullback entry,” or “the candles are wicky.” Most of the time, people don’t slow down to explain what they actually mean.

This post is meant to change that.

Below is a modern glossary focused on the terms you’ll hear most often as a new trader. Note that this is not a full dictionary. Just the words that matter when you’re trying to understand setups, read charts, and build confidence in how you think and speak about the market.

🧠 Chart Basics

Candle / Candlestick

A visual representation of price movement for a given time period. Shows where price opened, closed, and the highs/lows within that time.

Why it matters: Candlesticks help you visually understand market behavior without needing indicators.

Wick

The thin line above or below the body of a candle. Shows how far price moved before being rejected.

Why it matters: Wicks can signal hesitation or reversal, especially near key levels.

Support

A price level where buying interest tends to come in and prevent the price from falling lower.

Why it matters: Support zones help you spot where buyers may step in—useful for timing entries.

Resistance

A price level where selling interest tends to come in and prevent the price from moving higher.

Why it matters: Resistance levels help you avoid chasing moves into areas where price may reverse.

Trend

The general direction the market is moving: uptrend (higher highs/lows), downtrend (lower highs/lows), or sideways (chop).

Why it matters: Understanding trend helps you stay on the right side of the market instead of fighting it.

• Detailed explanation on price, trends, and momentum could be found here

🎯 Trade Setups

Read more

Welcome to Module 1, Part 1 of Trading Foundations: Your Starting Point, a 4 part accelerator series to help you understand how to read price, trends, and momentum.

When I first got curious about trading, I remember feeling two things at the same time: excited by the potential, and completely overwhelmed by how much noise was out there.

Everyone made it seem like you either had to gamble or go all-in with complicated strategies you barely understood.

But here’s what I’ve learned since then: trading is simply a skill. One you can learn over time, just like anything else.

It’s not a guaranteed way to make money. It’s not something that clicks overnight. It definitely isn’t what you usually see on social media. And to be honest, the people who are good at it usually just keep to themselves (though I know a few who want to give back to the community by teaching at this point in their career).

It’s more like learning to read the market’s behavior. And that starts with understanding three simple things:

• Price — how it moves

• Trends — the bigger direction it’s moving in

• Momentum — how strong (or weak) that move is

These are the building blocks I keep coming back to, no matter how the market changes.

I’ll be breaking these down in the next few posts in a way that’s easy to follow, even if you’re brand new to all of this. My goal is to help you build a foundation you actually feel good about, not one that leaves you second guessing or chasing random plays you don’t understand.

📝 How to Read Price

So before we talk about strategy or setups, let’s start with the most important part—reading price. It’s the foundation everything else is built on.

I’d say most people overcomplicate this part. They load up their charts with fancy indicators, colorful lines, and complex tools—thinking that’s what makes them a real trader. But here’s the thing… the most important information is already right in front of you.

It’s price.

Price tells you everything you need to know about how buyers and sellers are showing up. Every candle, every movement—it’s all just a record of what people are willing to pay and not willing to pay in that moment.

When you start seeing price this way, the chart stops looking random. You start noticing little clues about who’s in control—buyers or sellers—and where price keeps getting rejected or supported.

Here are a few simple things to start paying attention to on any chart:

1. Where price keeps turning around (Support & Resistance)

Support and resistance are key zones where price tends to stall, bounce, or reverse. These areas tell you where buyers or sellers have shown up strongly in the past.

• Support is a price level where buyers have consistently stepped in to prevent the price from falling lower.

  • When price comes back to this level again, you might expect buyers to show up again.

  • It doesn’t mean price has to bounce—but it’s a spot worth watching to see if buyers defend it.

• Resistance is the opposite. It’s a price level where sellers have stepped in to stop the price from going higher.

  • When price revisits this area, you might expect sellers to push back again.

These levels don’t guarantee a bounce or reversal, but they give you clear places to watch for reactions—which helps you avoid random trades in the middle of nowhere.

Read more

Hi! I’m Sunny :)

I get a ton of questions on TikTok about how to start trading and building the right foundation, so I finally dedicated some time to properly walk through the most commonly asked questions properly.

If you’ve ever opened a chart and thought, “what in the world am I even looking at…?”, “I’m already overwhelmed,” or “maybe I’ll just stay at my job lol” — this series is for you.

I created this as a grounded, beginner-friendly space to learn the basics of technical analysis, without the pressure to memorize strategies you’re not ready for, or the confusion that usually comes with charting tutorials.

Please keep this in mind as you read. Learning this takes time. It’s a steep curve at first, and that’s okay. Take breaks, revisit posts, and give yourself grace.

Just a heads up: this isn’t a trading strategy or course. It’s the foundation I wish I had when I started. It’s explained in a way that makes sense for my brain, and hopefully for yours as well. At the end of the day, trading is so personal to each individual. Think of this as an accelerator to help you understand price, market structure, and momentum, so you can eventually build your own approach with confidence, clarity, and patience.

📚 Table of Contents

This is everything that will be included in this accelerator so far to get you started. It’s likely that more topics will be added as I continue to receive feedback from you all.

Each one is its own post — click any to jump in!

Module 1: Foundations & Frameworks

🧭 What You’re Getting Into — A grounded intro to the trading world

📚 Trading Terminology — A modern glossary for new traders

🔎 Types of Traders — Which style fits your personality and lifestyle?

Module 2: Market Mechanics

🕯️ Candlesticks & Price Action — The language of the market

🕰️ Chart Types & Timeframes — The lens you choose matters

📈 Trends, Pullbacks & Momentum — How to read the market’s “flow”

📊 Support & Resistance — The invisible lines that guide price

🔍 Chart Patterns & Breakouts — Spotting setups before they move

📎 Indicators — When and how to use them thoughtfully

Module 3: Risk, Execution & Strategy

💰 Capital Allocation & Risk — The real edge in trading (Soon to come!)

⚖️ Sizing & Scaling — How to build positions with intention (Soon to come!)

🎯 Stops, Targets & ATR — How to exit trades like a pro (Soon to come!)

Module 4: Mental Frameworks

🧾 Your Trading Account Is a Business — Here’s How to Run It Like One

🧠 Trader Psychology — Why most traders lose (and how not to be one of them) (Soon to come!)

Have questions? Always feel free to message me directly on here, TikTok, or Instagram! I’m all ears on what you guys are struggling with.

Always in your corner.

xx, Sunny

Disclaimer

This content is for educational and informational purposes only. Nothing shared should be considered financial advice. Always do your own research and speak with a licensed financial professional before making investment decisions. Trading and investing involve risk, and you should never risk more than you can afford to lose.

If you’ve ever opened a trading chart and thought, “what in the world am I even looking at…?” — you’re not alone. Candlestick charts can seem intimidating at first, but once you understand how they work, they become a powerful tool for spotting price momentum, trend shifts, and market sentiment.

I’ll try to break it all down in the simplest way possible.

Just incase you’re more of a visual learner, here’s a Youtube video explaining candlestick patterns in depth

🔍 What Are Candlestick Charts?

Each candlestick shows how a stock or asset moved during a certain time period — like a day, hour, or even a minute. It tells you four key things:

• Open: Where the price started

• Close: Where the price ended

• High: The highest price reached

• Low: The lowest price reached

The body (the thick part of the candle) shows the range between the open and close. The wicks (lines above and below the body) show how high and low price moved during that time.

Read more

*Image sourced via: Brevinkast83

Most people treat trading like a slot machine — emotional, impulsive, and based on vibes. But the traders who last treat it like a business. Because that’s exactly what it is: a high-performance, decision-driven operation where you’re the CEO, CFO, and every department in between. In this piece, we’ll break down 12 ways trading mirrors running a business — from profit and loss to scaling sustainably — so you can stop winging it and start building real consistency.

📊 Profit & Loss (P&L) = Income Statement

1. In business: your P&L (profit & loss) statement tracks your revenue, costs, and net income over time.

2. In trading: your P&L is the heartbeat of your trading business. It tells you —

   1. What your average profit/loss per trade is.

   2. How much you’re making after costs like commissions, platform fees, and taxes.

   3. Whether you’re trending toward profitability or just having random wins.

Why it matters: you wouldn’t run a business without knowing whether you’re making or losing money — same goes for trading. Monitoring P&L helps you make data-driven decisions.

💸 Capital Allocation = Resource Management

1. In business: you budget for different departments (marketing, R&D, logistics, etc.).

2. In trading: you allocate capital across strategies (high probability setups ofc), setups, tickers, and asset classes.

3. You decide how much to risk per trade — just like a business wouldn’t put 100% of its funds into a single product launch.

4. Good capital allocation helps prevent drawdowns from wiping you out. Think of this as keeping the lights on while waiting for a high-conviction / probability opportunity.

Why it matters: smart businesses don’t overextend themselves — and neither should traders. You want capital to be used intentionally, not emotionally.

📦 Inventory = Trade Selection

1. In business: inventory is chosen based on customer demand and profit margin.

2. In trading: you “stock your shelves” with trades that have a high probability of success and good risk/reward.

3. Bad trades = dead inventory — tying up capital without return.

   1. Trade = Product. Not every product is worth selling. Not every trade is worth taking.

   2. Constantly refining your “inventory strategy” improves your performance.

Why it matters: your job isn’t to take every trade — it’s to only take the ones that meet your criteria. Poor trade selection = poor business choices.

🔍 Market Research = Edge Development

1. In business: companies study customer needs, trends, competitors.

2. In trading: you research technical setups, macroeconomic trends, earnings, sector rotation, etc.

3. Edge = Competitive Advantage. Without one, you’re competing in a saturated market with no differentiation.

Why it matters: If a business can’t explain why someone should buy from them , it’ll fail. If you can’t explain your edge, you’re not trading — you’re guessing.

🧯 Risk Management = Business Contingency Planning

1. In business: there are contingency plans, insurance, and diversification.

2. In trading: your tools are —

   1. Position sizing

   2. Diversification across tickers/sectors

   3. Avoiding overexposure

   4. Knowing when to sit out

Why it matters: great businesses don’t go under from one bad quarter. Great traders don’t blow up from one bad trade. Risk management is what keeps you in the game.

🏦 Cash Flow = Liquidity Management

1. In business: healthy cash flow = the ability to pay bills, invest, survive downturns.

2. In trading: cash allows you to —

   1. Buy when prices base or dip

   2. Stay calm during drawdowns

   3. Avoid over-leveraging

Why it matters: many profitable businesses fail due to poor cash flow — and so do traders. You must manage not just returns, but your ability to act when the market gives you opportunity.

📈 Performance Analytics = Key Business Metrics

1. In business: CEOs track revenue growth, churn, margins, etc.

2. In trading: you track —

   1. Win rate

   2. Risk/reward ratio

   3. Average holding time

   4. Drawdown periods

   5. Profitability by setup, sector, or time of day

Why it matters: without reviewing performance data, you’re flying blind. The more data you track, the more you can optimize what’s working — and cut what isn’t.

🧘🏻‍♀️ Emotional Mastery = CEO Mindset

1. In business: founder and CEOs must stay composed during tough quarters or investor pressure

2. In trading: you’re the CEO of your trading business. You must —

   1. Stay focused through wins and losses

   2. Avoid FOMO and revenge trades

   3. Remain grounded in process over outcomes

Why it matters: businesses don’t grow on emotion, and neither do trading accounts. You win by sticking to your edge, not chasing dopamine or wishful outcomes

Operating Costs = Overhead Expenses

1. In business: rent, payroll, software, legal, etc.

2. In trading: brokerage fees, data subscriptions, charting platforms, taxes, internet, education

Why it matters: you don’t get to keep 100% of your gains. True profitability = profits after expenses. Knowing your break-even and margins helps you trade like a real business owner.

🧠 Trading Plan = Business Model

1. In business: you have a business model — how you serve, what you offer, and how you profit

2. In trading: your plan defines —

   1. What you trade (stocks, options, futures)

   2. When you trade (timeframes, market conditions)

   3. How you manage risk

   4. What defines your edge

Why it matters: no serious business succeeds without a clear strategy. Your trading business needs that same clarity or it’ll operate chaotically.

🗓️ Quarterly Reviews = Earnings Reports

1. In business: companies issue quarterly earnings to analyze performance

2. In trading: you should do daily, weekly, monthly, and quarterly reviews —

   1. Am I growing my account?

   2. Are my setups still working?

   3. What’s draining my P&L?

   4. How did I perform emotionally?

Why it matters: this is where real growth happens. Treat yourself like a company — review, assess, and evolve regularly.

🚀 Scaling = Sustainable Growth

1. In business: you scale once the foundation is solid — not before

2. In trading: you scale position sizes and strategies only after proven consistency

Why it matters: premature scaling (aka going big too fast) can kill a profitable system. Just like startups that try to expand before they’re ready, traders can implode from too much too soon.

🧾 Summary

Trading’s not gambling. Neither is it guessing or saying “I feel like it’s going to….” Trading is entrepreneurship. You’re the CEO, CFO, and CMO of your trading business. The more you treat it like one, the more consistent your results will be.

xx, Sunny