Mesa Air Group, Inc. (fka MESAQ)

[Wheeeeee]

Chart reading is essential. There are patterns that get confirmed using technical indicators. Highs and Lows are callsed pivots. You should not look hard for em, they should be obvious. Then use trendlines and moving averages as your guide to future movement.
When certain levels are touched (like the top of a "wedge" or "ascending triangle") then you use all kinds of techincal indicators and volume to decide whether or not we will get a breakout of that resistance line or not. Intensity of price movement is imporant as well then. L2 will give alot of hints on the resistance.. will the current buying pressure take out all that resistance before the moving averages catch up with the price? If not and the volume is faily low then one can decide to sell HALF or so of the position.

All this logic works exactly to the oposite on the downside.

Why did we break up this morning? It all has to do with the moving averages. Look at the intraday moving averages yesterday they were all close. That means massive resistance.
This morning we saw a sharp spike down which basically spread out the moving averages *why would that be?* . So the price could take the moving averages one by one.

Volume analysis is important as well. Not only the trading volume, but also the types of owners of the float. Are the holders high quality holders or people that enjoy typing junk with the caps lock on. Is the main type of holder emotional or not.. if so play contrarian. BUT ALLWAYS BACK IT UP WITH A CHART!

And allways and I mean allways use multiple time frames.

Just for fun you should look at the weekly timeframe and open up a symbol of the SPY (index ticker for the SP500)... you will then see that all the news on tv is BS when they say that "investors sold off due to bad expectations in the market".. whatever, the chart tells you something else.

Charting is essential but not exclusively. So if you want to scalp out shares you should REALLY start with charting. And spend a good deal of time on it.

BTW another good way to support your suspicions is lookig at the rate of change on the stock. Does the price move fast or slow. Compare it with the movement of a Sine wave. (no im not saying that its a trading pattern). But notice how as the time moves from left to right that the distance traveled up or down slows down and speeds up. When the price movement slows down it will mean that the moving average will catch up with it.