Putting It All Together
Lesson 8 of 87 min5 exercises
Learn · 1/4
Building Your Analysis Framework
Now that you understand the building blocks, let's combine them into a systematic approach. Good technical analysis isn't about finding one indicator - it's about confluence (multiple factors agreeing).
The SUTOK Analysis Checklist
Step 1: Identify the Trend
- Higher timeframe: What's the main trend?
- Is it uptrend, downtrend, or ranging?
- How strong? (Check ADX)
Step 2: Find Key Levels
- Where is support?
- Where is resistance?
- Any round numbers nearby?
Step 3: Look for Patterns
- Any reversal patterns forming?
- Any continuation patterns?
- What's the current candle telling us?
Step 4: Check Volume
- Is volume confirming the move?
- Any divergences?
- Relative volume high or low?
Step 5: Assess Risk/Reward
- Where would you enter?
- Where would your stop be?
- What's the target?
- Is it at least 2:1 reward:risk?
- Higher timeframe: What's the main trend?
- Is it uptrend, downtrend, or ranging?
- How strong? (Check ADX)
Step 2: Find Key Levels
- Where is support?
- Where is resistance?
- Any round numbers nearby?
Step 3: Look for Patterns
- Any reversal patterns forming?
- Any continuation patterns?
- What's the current candle telling us?
Step 4: Check Volume
- Is volume confirming the move?
- Any divergences?
- Relative volume high or low?
Step 5: Assess Risk/Reward
- Where would you enter?
- Where would your stop be?
- What's the target?
- Is it at least 2:1 reward:risk?
Tip
SUTOK does most of this analysis automatically! But understanding the "why" behind the signals makes you a better trader.
Learn · 2/4
Confluence is King
The best trades have multiple factors aligning:
High-Probability Long Setup:
- Price at support level ✓
- RSI oversold ✓
- Bullish candlestick pattern ✓
- Volume increasing on green candle ✓
- Main trend is up ✓
When 4-5 factors agree, your odds improve significantly.
High-Probability Long Setup:
- Price at support level ✓
- RSI oversold ✓
- Bullish candlestick pattern ✓
- Volume increasing on green candle ✓
- Main trend is up ✓
When 4-5 factors agree, your odds improve significantly.
Example
GME Analysis: - Daily trend: Uptrend ✓ - Price: At 20 SMA support ✓ - RSI: 35 (oversold) ✓ - Candle: Hammer ✓ - Volume: 1.5x average ✓ This is a high-confluence long opportunity!
5/5 factors aligned = Strong setup
Learn · 3/4
Reading SUTOK's Score
SUTOK calculates a cumulative score based on all indicators:
| Score | Bias |
|---|---|
| ≥ +6 | Strongly Bullish |
| +3 to +5 | Bullish |
| +1 to +2 | Slightly Bullish |
| -1 to +1 | Neutral |
| -2 to -3 | Slightly Bearish |
| -4 to -5 | Bearish |
| ≤ -6 | Strongly Bearish |
Watch out
Technical analysis improves your odds but doesn't guarantee success. Always manage your risk, use stop-losses, and never bet more than you can afford to lose.
Learn · 4/4
Key takeaways
- Use a systematic approach: trend → levels → patterns → volume → risk/reward
- Look for confluence - multiple factors agreeing
- SUTOK's score reflects the sum of all technical signals
- Always manage risk regardless of how good the setup looks
Next: 5 quick exercises. Miss one and it comes back at the end.