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Technical Analysis for Beginners
Learn how to read charts using Support & Resistance, 3EMA, 1SMA, Stoch RSI, and MACD — the beginner-friendly way.

Hey there, chart-watching investors👋
You’ve mastered the “what to buy” part with Fundamental Analysis (FA) — solid, profitable companies that pass your 4S test.
But here’s the truth: even the best company’s stock price doesn’t move in a straight line.
So the next question is... when to buy (and when to chill)? 😅
That’s where Technical Analysis (TA) comes in.
If fundamentals tell you the story of a business, technicals tell you the mood of the market — are traders greedy, fearful, or about to flip direction?
Let’s break this down with the 5 chart tools in www.tradingview.com
🧱 1️⃣ Support & Resistance — Your Market GPS
Think of support as the floor (where price tends to bounce up) and resistance as the ceiling (where price tends to fall back down).

Support (Floor) & Resistance (Ceiling)
📉 When the price hits support, buyers usually step in.
📈 When the price nears resistance, sellers often take profit.
💡 Beginner tip:
Draw these lines on TradingView by connecting recent swing highs (resistance) and swing lows (support).
Buy near support, sell near resistance.
Simple, but powerful.
📊 2️⃣ Moving Averages — The Trend Compass
We use Exponential Moving Averages (EMAs) and Simple Moving Average (SMA) to see where the market’s heading.
👉 In your TradingView chart, set up:
3 EMAs: 21, 50, 100, 200
1 SMA: 200

Exponential & Simple Moving Averages
These act like speed indicators of price movement.
💬 How to read them:
If the price is above all EMAs & SMA, the trend is bullish — momentum is strong.
If the price is below, trend is bearish — momentum is weak.
If shorter EMAs (like 20 or 50) cross above longer ones (like 100 or 200 SMA), that’s a Golden Cross — a bullish signal.
When they cross below, that’s a Death Cross — bearish alert! ⚰️
📈 Use these to confirm trend direction before entering or exiting a trade.
🎯 3️⃣ Stochastic RSI (3,3,14,14) — Catching Overbought & Oversold Zones
The Stochastic RSI helps you spot short-term turning points — when prices are too hot or too cold.
Here’s how beginners can use it effectively:

Overbought & Oversold Zones
The indicator moves between 0 and 100.
Above 80 = Overbought Zone (price may soon pull back)
Below 20 = Oversold Zone (price may soon bounce)
💡 When to act:
If the blue line crosses below 80, it may be time to take the profit.
If it crosses above 20, it may be time to look for an entry.
Think of it as the mood swing detector of the market — when it’s overexcited (80+), expect a cooldown; when it’s too depressed (20-), expect a rebound. 😎
🔵 4️⃣ MACD (12, 26) — The Momentum Meter
The MACD (Moving Average Convergence Divergence) tells you if the market’s momentum is gaining or fading.
It has two lines and a histogram:

The Momentum Meter
Blue Line (MACD Line) = Short-term momentum
Red Line (Signal Line) = Slower, confirming momentum
Histogram Bars (Green / Red / Pink) = Strength of the trend
💬 How to read it:
When the blue line crosses above the red line, it’s a bullish crossover — momentum shifting up.
When the blue line crosses below the red, it’s a bearish crossover — momentum turning down.
Green histogram bars = bullish strength
Red histogram bars = bearish pressure
Pink bars = fading momentum — trend may reverse soon.
📈 Combine MACD with Stochastic RSI for stronger confirmation:
If both show bullish signs (RSI below 20 and MACD cross up), that’s your green light!

Spotting Bullish Signs in TradingView
🧠 The SM Cafe “CUP” Formula for Technical Beginners
Here’s a simple way to remember it all — just think CUP (because everything tastes better at SM Cafe ☕):
✅ C – Check the Chart zones (Support & Resistance)
✅ U – Understand the Underlying trend (EMA & SMA)
✅ P – Pinpoint entry/exit with Price momentum tools (Stoch RSI & MACD)
Once you master this, you’ll stop guessing when to buy — and start timing your trades with confidence.
🌟 Final Sip of Wisdom
Technical analysis isn’t about predicting the future — it’s about reading the present.
Just like a barista learns to “read the pour,” a good trader learns to read the chart.
☕ When fundamentals tell you what to buy,
📈 technicals tell you when to buy (and when to take profits).
So brew both together, and you’ll get a perfect blend of logic and timing — the recipe for consistent results.
📬 Join the SM Cafe Community!
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☕ SM Cafe: Where finance meets flavor — and clarity meets confidence.