The above is a simple chart that gives you a directional range based on a simple and familiar pattern called a „bull flag” (channel) and previous pivot points, as well as the famous and followed 20EMA, which is the key. indicator for technical analysis. Both are described below. Bull Flags in Technical Analysis: The bull flag channel chart pattern often continues to push the stock higher. It is characterized by a consolidation followed by a rapid increase. When the stock price rises strongly and sustainably, it forms a channel or flag-like pattern on the chart. This horizontal channel is bounded by horizontal trend lines. The upper trend line represents resistance, the lower trend line represents support. During consolidation, the stock price may move within the channel, but within a narrow range. Traders and investors wait to see which direction the stock price will move next during the consolidation period. The stock price breaks out of the channel and rises, indicating an uptrend. Others may wait for a pullback or retest the breakout before placing a trade. Approximate 20-Day Exponential Moving Average (20EMA): EMAs are used to smooth price data and spot patterns. It is like a simple moving average (SMA), but with more weight given to recent price data. The 20-day exponential moving average (EMA) is a technical indicator that takes the average stock price of the last 20 days, but gives more weight to the last few days. To calculate the 20-day EMA, first calculate the weighting factor, which is 22/(N 1) (20 in this case). Once you have the weighting coefficient, you can calculate the 20-day EMA. EMA = (Today’s Price * Weighting Factor) (Yesterday’s EMA * (1-Weighting Factor)). Repeat this method for each day of the period starting from the previous day’s EMA. The smoothed line on the chart helps filter out noise and volatility in the price data.