If you’re new to trading, one of the first tools you’ll hear about is TradingView. It’s the charting platform almost everyone uses—from beginners learning their first candlestick to professionals running complex strategies. Most modern trading education, including the lessons you’ll see here, uses TradingView as the visual foundation for examples, screenshots, and demonstrations. Learning how to navigate it early will make everything that follows far more intuitive.
TradingView is a charting platform that lets you analyze price action for stocks, crypto, forex, and futures. The charts are fast, customizable, and packed with tools. You can draw trendlines, mark support and resistance, add indicators, and replay price history to practice your strategy. It also comes with a social component: traders publish ideas, scripts, and setups that you can study to understand how others approach the market.
The real strength of TradingView is how easy it is to use. You can drag stop loss levels, zoom in and out smoothly, switch timeframes instantly, and organize your charts into watchlists. Whether you’re learning breakouts, trailing stops, supply and demand zones, or anything in between, TradingView gives you the clean visual environment you need to see the concepts in action.
Because of that, every lesson in this series relies on TradingView for demonstrations. If you’re not comfortable with it yet, the examples might feel abstract or confusing. Once you understand the basics—drawing tools, candles, timeframes, chart settings, and how to enter simulated trades—the concepts will click much faster.
So before you go deeper into strategy, take a little time to learn the platform. Spend an afternoon exploring its tools, watching a few beginner tutorials, and practicing simple chart markup. The better you know TradingView, the more value you’ll get from every trading lesson that follows.
Candlestick patterns help traders quickly understand who is in control of a stock during any time period. Each candle shows the open, high, low, and close. A green candle means buyers pushed the price up, while a red candle shows sellers pushed it down. The body shows where price stayed, and the wicks show where price only passed through.
When several candles form a pattern, they reveal momentum and possible turning points. Many have fun names but none of them are decisive signals. Bullish patterns like hammers and engulfing candles suggest buyers are stepping in. Bearish patterns like shooting stars and bearish engulfing candles hint that sellers are gaining strength. Some candles show indecision, such as doji and spinning tops.
Candlestick patterns are not perfect signals, but they give valuable insight into pressure, emotion, and trend direction. With practice, you can use them to confirm entries, improve timing, and understand market behavior more clearly.
When buying stocks, there are two main positions you can take: long and short. They’re called positions because you are taking a specific stance in the market; you are choosing to either benefit from prices going up or from prices going down.
Long
A long position means you buy shares because you expect the price to rise and plan to sell later at a profit.
Example
You buy 10 shares at $50 each (go long).
The price rises to $60.
You sell and make $10 per share profit.
So “going long” = a normal buy trade. It’s the opposite of shorting, where you profit if the price falls.
Short
A short position means you borrow shares and sell them right away because you expect the price to drop, then buy them back later at a lower price to return them.
Here’s how it works
You borrow shares from your broker and sell them at the current price.
Later, you buy them back (called “covering”) at a lower price.
You return the shares to the broker and keep the difference as profit.
Example
You short 10 shares at $100 → you get $1,000.
The stock drops to $80.
You buy them back for $800.
You return the shares and keep $200 profit.
If the stock price rises instead, you lose money — and losses can be unlimited, since prices can rise indefinitely.
A Fair Value Gap (FVG) is an imbalance in price movement that shows where buying and selling weren’t equal — often caused by strong momentum from institutions.
In a candlestick chart, it’s a gap between candles where price moved too fast and skipped over levels with few or no trades.
Example
Candle A’s high is lower than Candle C’s low (with Candle B in between).
That leaves a gap between A’s high and C’s low.
It suggests inefficient price movement — price might later retrace into that gap before continuing upward.
Why traders care Price often returns to fill part or all of the FVG before resuming its trend, making it a popular entry or retracement zone for smart money traders.
Support and Resistance are key price levels where a stock tends to pause or reverse its movement.
Support: The price level where buying pressure is strong enough to stop the price from falling further. → Think of it as a floor where buyers step in. Example: A stock keeps bouncing up near $50 — that’s support.
Resistance: The price level where selling pressure stops the price from rising higher. → Think of it as a ceiling where sellers take profits. Example: A stock keeps falling back down near $70 — that’s resistance.
When price breaks through one of these levels, it often becomes the opposite:
Old resistance can become new support.
Old support can become new resistance.
Traders use these zones to plan entries, exits, and stop losses.
The First 30 Minutes Rule
The first 30 minutes of the trading day often create strong support and resistance levels because this period contains a surge of volume and institutional activity, reflecting the market’s initial reaction to overnight news and establishing where major buyers and sellers are willing to transact.
Notice how stocks tend to “ping-pong” off the first 30 minute box?
These opening-range highs and lows represent the earliest and most meaningful price extremes of the session, formed during heightened volatility and heavy order flow; as the day progresses and volatility typically contracts, traders widely reference these well-known levels, reinforcing them psychologically and mechanically as key areas where price frequently pauses, reverses, or breaks with significance.
A good example of Support and Resistance is the First 30 Minutes High/Low Box which can be automatically drawn on your charts by utilizing the following script written in PineScript:
First 30 Minutes High/Low Box
//@version=6
indicator("First 30 Minutes High/Low Box", overlay = true)
range_minutes = input.int(30, "Range length (minutes)", minval = 1, maxval = 120)
extend_today = input.bool(true, "Extend today's 15m box across day")
fill_transp = input.int(95, "Box transparency", minval = 0, maxval = 100)
box_color = color.green
var int first_bar_index = na
var int window_end_ts = na
var float rng_hi = na
var float rng_lo = na
var box rng_box = na
new_day = ta.change(time("D")) != 0
if (new_day)
// New day starts: clear old box and start a new 15m window
if not na(rng_box)
box.delete(rng_box)
rng_box := na
first_bar_index := bar_index
rng_hi := high
rng_lo := low
window_end_ts := time + range_minutes * 60 * 1000
else
// While still inside the first 15 minutes, keep updating the range
in_window = not na(window_end_ts) and time <= window_end_ts
if in_window
rng_hi := na(rng_hi) ? high : math.max(rng_hi, high)
rng_lo := na(rng_lo) ? low : math.min(rng_lo, low)
if na(rng_box)
rng_box := box.new(left = first_bar_index, top = rng_hi, right = bar_index, bottom = rng_lo, xloc = xloc.bar_index, border_color = box_color, bgcolor = color.new(box_color, fill_transp))
else
box.set_top(rng_box, rng_hi)
box.set_bottom(rng_box, rng_lo)
box.set_right(rng_box, bar_index)
// After the window ends, just extend the box to the right if desired
if extend_today and not na(rng_box) and not in_window
box.set_right(rng_box, bar_index)
The first 30 minutes after the market opens often set the tone for the day. Traders mark the high and low of this period to form the 30-minute box, a simple range that shows the first real battle between buyers and sellers. The top of the box acts as resistance and the bottom acts as support. Many intraday trends begin the moment price finally leaves this range.
A breakout happens when price moves outside the box. What matters most is not the wick, but the candle body closes outside the box. A close above the 30-minute high signals that buyers were strong enough to hold price beyond resistance, and sellers could not push it back inside. This shift often triggers momentum and opens the door for a trend to develop.
Once a candle closes above the top of the box, the old resistance commonly becomes new support. This is the classic support-resistance flip. Traders who shorted at resistance get trapped and are forced to buy back. Breakout traders add positions. Dip buyers step in on the retest. Together, this creates fresh demand at the breakout level, causing price to bounce when it pulls back.
Most traders approach this setup in one of two ways: entering on the candle close above the box, or waiting for the retest of the breakout level and entering when it holds as support. Either way, the logic is the same. The first 30-minute range shows the early balance of power, and the breakout marks the moment the market picks a side.
You can protect yourself against losing money, this is called risk management. You do this by specifying a “stop loss” and/or “take profit” when placing your order.
Stop Loss
A stop loss automatically buys back (covers) your short position if the stock rises to a certain price, limiting your losses.
Example:
You short at $100, expecting it to fall.
You set a stop loss at $110.
If the price rises to $110, your broker automatically closes the trade.
You lose $10 per share, but you avoid unlimited losses if the price keeps rising.
Using a stop loss is the main way to protect yourself when shorting
Take Profit
A take profit automatically closes your position when the stock reaches a target price, locking in gains before the market can reverse.
Example
You short at $100, expecting it to fall.
You set a take profit at $90.
If the price drops to $90, your broker automatically buys back the shares and closes the trade.
You make $10 per share, and you avoid the risk of the price bouncing back up and erasing your profit.
Using a take profit is the main way to secure gains without having to watch the chart constantly.
MACD (Moving Average Convergence Divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of a stock’s price.
How it works:
It calculates the difference between a fast (short-term) and a slow (long-term) Exponential Moving Average (EMA).
Common settings: 12-period (fast) and 26-period (slow).
A signal line (usually a 9-period EMA of the MACD) is plotted to show buy/sell signals.
Interpretation:
MACD line crosses above signal line → possible buy signal.
MACD line crosses below signal line → possible sell signal.
Histogram bars show the distance between MACD and signal line — larger bars mean stronger momentum.
In short: MACD helps traders see trend direction, momentum strength, and potential reversals.
RSI (Relative Strength Index) Divergence is a momentum indicator that measures how fast and how much a price has moved recently to show whether a stock is overbought or oversold.
It ranges from 0 to 100. Above 70 usually means overbought (price may pull back). Below 30 usually means oversold (price may bounce).
50 is neutral — balance between buying and selling pressure.
Traders use RSI to spot trend strength and possible reversal points. For example:
RSI rising from 30 → 50 → 70 = momentum building up.
RSI falling from 70 → 50 → 30 = momentum fading, possible downturn.
A “gapper” is a stock that has experienced a significant price gap, meaning its opening price is much higher or lower than the previous day’s closing price, with little or no trading in between. These movements are often driven by news, such as earnings reports, and are watched by traders for potential opportunities, but they also carry higher risk due to volatility.
Entry
Buy the first serious pullback after the initial blast.
Confirm with:
MACD still rising
RSI still strong
Volume still heavy
Price holding above VWAP
Exit
You do not wait for “confirmation.” You exit on the first sign of momentum failure:
A trailing stop loss is one of the simplest ways to protect gains without constantly babysitting your chart. Instead of keeping a fixed stop at a single price, a trailing stop moves up automatically as your trade becomes profitable. This lets you lock in gains while still giving the trade room to breathe.
What many traders don’t realize is that in TradingView you can manually drag your stop loss above your entry price, turning it into a guaranteed-profit stop. Once the stop is above your buy price, you no longer risk losing money on the trade. If the market reverses and hits that stop, you exit with profit instead of a loss.
This is powerful, but it comes with a catch. If you drag your stop too close to the current price action, the market might tag it during a normal pullback and sell your position. You take profit but you’re out of the game. The chart continues in your direction, and you’re left watching the trade run without you. It’s an easy mistake that newer traders make when they try to “lock in every penny” instead of letting the trend develop.
When adjusting a trailing stop, think in terms of structure, not emotion. Place your stop below meaningful swing lows or support levels—the areas where the trend would actually be invalidated. This gives the trade enough space to fluctuate without shaking you out. Only bump the stop up when the chart makes a new structural higher low (uptrend) or lower high (downtrend).
TradingView’s draggable stop loss tool makes this process simple: click your stop line, drag it above your entry, and confirm the new price. Just remember that the goal is to protect profit, not to choke the trade. A trailing stop works best when it follows the market at a respectful distance, letting winners grow while removing the stress of watching every candle tick.
Used wisely, trailing stops keep you in strong moves longer, secure your gains, and remove a lot of emotional decision-making. Used too tightly, they cut great trades short. Balance is everything.
Psychological patterns shape market behavior more than most traders admit. One of the strongest patterns is the human tendency to anchor decisions around crisp, round numbers. These levels become magnets for price action and often act as resistance or support.
The Brain Prefers Simplicity
Round numbers are easier to process. In a fast environment full of noise and risk, traders naturally choose simple targets like 50 or 100 instead of odd numbers. This reduces mental effort and feels more comfortable.
Round Numbers Create Crowd Behavior
Because so many traders think this way, whole numbers attract clusters of orders. Stops, limits, and take profits pile up around clean levels. This concentration of activity creates visible hesitation, sharp bounces, or sudden breakouts.
Algorithms Exploit This Bias
Modern trading systems monitor these psychological hotspots. They know stops are stacked near whole numbers and often trigger fast sweeps through these levels before price settles.
How Traders Can Use This
Expect stalls or fakeouts near clean levels
Place stops slightly above or below obvious round numbers
Treat crisp levels as planning markers, not fixed rules
Round numbers are not magical. They simply reflect how people think. Once you understand that pattern, you start seeing the market with clearer eyes.
This lesson is gonna be a major bummer, but it’s better to find out now rather than the hard way (like I did). Essentially when you first start trading you can’t just buy and sell stocks all day long. Your broker will only allow you to do that three times in a work week before they “punish you” with the dreaded Pattern Day Trader Rule(PDT Rule).
TL;DR
To day trade a lot, you must change your account into a margin account.
You must put 25,000 dollars or more into the account.
You must keep your total money and stocks above 25,000 dollars so you do not get blocked.
A margin account lets you borrow up to half of what you own.
When you short a stock, you are borrowing it, and that uses up part of that borrowing limit.
Rules No One Told You
If you trade stocks actively, you will run into a rule that stops a lot of beginners in their tracks: the Pattern Day Trader Rule(PDT Rule). Most people do not learn about it until it freezes their account and forces them to sit out for days. This was my first encounter with the rule:
What the PDT Rule Actually Is
The Pattern Day Trader Rule comes from FINRA. It says that if you make four or more round-trip day trades in a rolling five day period while using a margin account, you will be flagged as a Pattern Day Trader.
A day trade is a buy and a sell of the same stock on the same day.
Once flagged, your broker must require your account to maintain at least twenty five thousand dollars in equity at all times. Drop below that level and your broker can restrict your trading to only closing positions. This rule was designed to protect inexperienced traders from blowing up, but in practice it limits small accounts far more than it protects them.
Why the Number Is Twenty Five Thousand
Brokers do not pick this number. It is built into the rule. FINRA requires a minimum of $25,000 in a margin account if you want unlimited day trades. Think of it as a barrier to entry. If your account sits at twelve thousand, for example, you only get three day trades per rolling five day window. After the third, your account is locked until the window resets. Many new traders run into this because they do not realize each quick buy and sell counts as a day trade.
Reg T Explained
Regulation T, often called Reg T, is a Federal Reserve rule that governs how margin (shorting stocks, generally) works. It sets two things:
Initial Margin You can borrow up to 50 percent of a stock’s price when you open a position. If a stock costs one hundred dollars, you can open the position with fifty dollars of your own money and borrow the rest.
Settlement and Buying Power Reg T also controls how much buying power you have in a margin account and how long trades must settle before your cash becomes usable again.
Most beginners do not know that using margin, even accidentally, can trigger PDT classification. Many brokers default accounts to margin by default unless you change them.
Margin Maintenance
Once you open a margin position, you need to maintain a certain level of equity or your broker can issue a margin call. This is called Maintenance Margin. If the value of your position drops and your equity falls below the required percentage, you must deposit more cash or close positions. This means your broker just starts selling off your stock without you even knowing it!
I logged on one day and someone had sold 20x shares of NVDA for $180. I had bought it for $200; violating this rule, that I had never heard of, cost me $400!
This affects new traders who overextend. They buy too much size, the stock pulls back, equity drops, and suddenly they owe money or lose their position without intending to.
How New Traders Get Burned
Most beginners fall into one of these traps:
They use a margin account without realizing it, triggering PDT limits.
They take more than three day trades in five days and get restricted.
They overuse borrowed buying power and get a margin call.
They assume cash settles instantly and run into “good faith violations.”
No broker sits you down and explains this. The warnings are usually buried in legal text during account creation.
How to Avoid These Pitfalls
Here is the simple way to protect yourself:
1. Use a Cash Account if Your Account Is Under 25,000 A cash account is the easiest way to avoid PDT. You can day trade as much as you want as long as the cash has settled. Stocks settle in two days. Options settle next day. No PDT rule applies to cash accounts.
2. If You Use a Margin Account, Track Your Day Trades Many platforms show a counter so you do not accidentally hit four in five days. Use it.
3. Avoid Overusing Margin Borrowed buying power feels great until the market moves against you. Start small.
4. Know Your Settlement Times Plan your trades around when your cash becomes available again. This avoids good faith violations.
5. Keep a Buffer Above Twenty Five Thousand If you are close to the threshold and the market pulls back, you can fall under the minimum and get restricted even if you did nothing wrong. People often keep a two thousand dollar buffer.
6. Read Your Broker’s Settings Many brokers, including IBKR, open new accounts as margin by default. Change it if you want to avoid PDT.
The Bottom Line
The trading world has rules that can stop you cold if you do not know they exist. The twenty five thousand dollar barrier to entry is one of the biggest shockers for new traders. Understanding PDT, Reg T, and Maintenance Margin keeps you from stepping on the same landmines that catch thousands of beginners every year. Once you know the rules, you can work within them, build your account, and avoid unnecessary restrictions while you learn.
