Shares of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) are trading down sharply on Friday. The move lower was triggered by news of insider selling.
The stock teaches an important technical analysis lesson. This is why it is our Stock of the Day.
One of the most interesting and misunderstood dynamics of technical analysis is its fractal nature. This means the same patterns can be seen on charts of different timeframes.
In the stock market, there tends to be support at price levels that had been support previously. This is because of psychology. It is due to remorseful sellers.
These are people who sold shares while the stock was at support that regretted doing so when the price rallied soon after. Many of them decide to buy their shares back if they can get them at the same price they were sold for.
As a result, when the price drops back to the level that was support, they place buy orders. If there are enough of these buy orders it will form support at the level again.
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As you can see on the 4-month chart, there has been support around the $345.00 level for CrowdStrike. This is a graphical illustration of the sellers' remorse of swing traders. These traders typically have time horizons of a few weeks or months.
4-month chart
One-Day Chart
The same type of action can be seen on a one-day chart. The $350.00 has been support. This is a graphical illustration of sellers' remorse of traders that have short-term time horizons. This support was created by day traders.
1-day chartTechnical analysis has a dubious reputation on Wall Street. This shouldn't be surprising. Many analysts don't understand some of the basic principles.
If understood and applied correctly, technical analysis is the study of investor and trader psychology. Charts are graphical illustrations of this psychology.
Regardless of the timeframe of a strategy that is being traded, the people who are doing the trading experience the same emotions. These are what appear on charts. This is why the same patterns appear of charts that have different time horizons.
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Image: Shutterstock
CrowdStrike Holdings, Inc.（納斯達克：CRWD）的股票週五大幅下跌。此次下跌是由於內部人士出售股票的資訊觸發的。
這隻股票傳授了一個重要的技術面分析課程。這就是它成爲我們今日股票的原因。
技術面分析中最有趣且最令人誤解的動態之一是其分形特性。這意味着在不同時間框架的圖表上可以看到相同的模式。
在股票市場中，之前被視爲支持的價格水平通常會再次形成支持。這是由於心理因素，是因爲感到後悔的賣家。
這些人是在股票處於支持位時出售股票的人，但是當價格隨後上漲時感到後悔。許多人決定如果可以以他們出售時的價格重新買回股票就會這樣做。
因此，當價格回落到曾經的支持位時，他們會下買單。如果這些買單足夠多，它將在該水平再次形成支持。
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正如您在4個月的圖表上看到的，CrowdStrike周圍的$345.00水平存在支持。這是擺動交易者感到後悔的圖示。這些交易者通常的時間範圍爲幾周或幾個月。
4個月圖
1天圖
在一日圖上也可以看到相同類型的行動。$350.00 一直是壓力位。這是對短期持倉交易者賣方悔意的圖形展示。這個壓力位是由日內交易者創建的。
1天圖 技術面分析在華爾街的聲譽模糊不清。這不應該令人驚訝。很多分析師不理解一些基本原則。
如果理解並正確應用，技術面分析是對投資者和交易者心理的研究。圖表是這種心理的圖形展示。
無論交易的策略時間框架如何，進行交易的人都會經歷相同的情感。這些情感會在圖表上顯現。這就是爲什麼在不同時間範圍的圖表上會出現相同的模式。
圖片：Shutterstock
