To The Moon

Speaker: K-Yong Kan, Investment Representative at Tiger Brokers, closes Trading 101 Part 2a with the charting tools on Tiger Trade and a real SPY example where the best decision was to wait.

[About the Speaker] K-Yong Kan is an Investment Representative at Tiger Brokers who built the Trading 101 series to help clients learn trading and investing step by step. This is the last of four recaps from Part 2a, Chart Patterns & Candlesticks.

[The Hook] After chart types, levels, patterns and timeframes, K-Yong walked the room through a real example from around late August or early September. The twist: the lesson was a trade he did not take.

[First, Learn to Draw It]

K-Yong's point: all the theory only helps if you can mark it on a chart. Drawing support and resistance and outlining patterns makes them easier to see and gives you more clarity when trading.

• On mobile (Tiger Trade): open the drawing tools on the chart, tap one point and then another to create a line, then drag to adjust it into a trendline. Use the horizontal line for support and resistance levels. Since the phone screen is small, you may need to nudge lines with your thumb.

• On desktop (Tiger Trade): there are more tools, including chart patterns and price ranges. K-Yong pointed out that the price range tool is handy for drawing support and resistance as a zone rather than a single line.

[The Setup: An Inverse Cup & Handle on SPY]

On the SPY 1-hour chart (SPY is the ETF that tracks the S&P 500), K-Yong spotted an inverse cup and handle, a pattern that may point to a downside scenario. The obvious idea: short it.

[Zoom Out Before You Pull the Trigger]

But a single timeframe isn't enough. On the 4-hour chart, price had just bounced off the previous descending trendline, which may have turned from resistance into support. The daily chart looked similar. With the timeframes pulling in different directions, K-Yong chose to pause and wait for more confirmation, because shorting now could mean getting caught on a bounce.

[The Conditional Plan]

Instead of acting, he wrote an if-then plan. A trader might consider entering a short if price fell back through the descending trendline, meaning the earlier break above had failed and price dropped back into the channel. The take-profit would be around the middle of the channel, with a maximum target at the bottom of the descending channel.

[Two Days Later...]

The upper trendline of the descending channel held as support. Price bounced and traded higher. A trader who had shorted without confirmation would likely have been on the wrong side of the move. K-Yong's summary: he was glad he waited. (This example is for education, not a recommendation to trade.)

[What's Next in Trading 101]

Charts show you price, but not how strong a trend is. K-Yong explained that when a trend is strong a continuation is more likely, and when it weakens a reversal is more likely. That is why the next session, Part 2b, covers commonly used indicators and oscillators. The series then moves on to Fundamental & Sentiment Analysis and Trading Psychology.

[Key Takeaways]

• Draw it so you can see it. Charting tools turn theory into something you can check.

• One timeframe is not a trade. Check the others for confluence before you act.

• Plan in if-then terms. Decide the confirmation, the target and the invalidation level in advance.

• Not trading is a decision too. Sometimes the best trade is the one you skip.

[Call to Action 🎯]

1. Pick an index ETF you follow and look at its 1-hour, 4-hour and daily charts. Note any pattern and the key levels you see.

2. Write one if-then plan: what confirmation would you wait for, and where would the idea be invalid?

3. Drop a comment: what confirmation would you wait for before acting?