NVIDIA Corporation
教育

How to Chart a Stock for Options/Short-Term Trading

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How to Chart a Stock for Options/Short-Term Trading

1. Start on the Weekly Timeframe

  • Zoom out first to identify key levels — areas where price has repeatedly rotated, rejected, or found support
  • Mark horizontal lines at significant pivot points (prior resistance, support zones, areas of major reversals)
  • Box in any range-like behavior where price consolidates between two levels


2. Move to the Daily Timeframe

  • Use your weekly levels as a foundation, then refine their exact placement based on daily candle structure
  • Look for whether the stock is in an uptrend and identify distinct legs (leg 1 up → pullback → leg 2 up → potential leg 3)
  • Note the 20 EMA (or 10 EMA, depending on the stock) as a key dynamic level — stocks often test it during pullbacks, sometimes undercutting briefly before resuming
  • Draw rectangles to capture zones rather than forcing a single price line when price clusters in a small range


3. Drop to the Hourly Timeframe
  • This is where you wait for your actual entry setup
  • Look for a "shelf" — a period of sideways, micro range-bound price action that holds a support level
  • Signs the pullback may be ending: price slowing down, beginning to interact with the 10 or 20 EMA, a small pop of buyers followed by a controlled retest
  • Ideal entries are on the first or second pullback after a base breakout on the hourly — the later you enter, the less runway may remain


General Principles

  • Trade in the direction of the broader trend — filter out counter-trend setups
  • Think in scenarios: where does it go if it holds here vs. flushes lower?
  • You don't need certainty — you need probability and a defined stop level
  • The hourly setup only matters if the weekly and daily give you the green light first — they are your pre-filters

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