Charts and candles

At the moment I am reading The Naked Trader by Robbie Burns. It's well written, humorous and free of technical jargon.

I also started reading A Beginner's Guide To Day Trading Online by Toni Turner. This book is full of charts and technical stuff. I have no intention in turning into a day trader but I am interested in her analyses to gain a better understanding of the technical side of trading.

Take the following 1 month daily interval candle chart for Ambarella (AMBA). The price exceeded $60 on a couple of days last week on high volume and has been moving between $50 and $60 for most of the month. This information is readily available in a candle chart. I'm hoping to sell at around $58, which will net me a decent profit thanks to the strong dollar.

This week I sold my 2 Netflix (NFLX) shares for $109. NFLX has continued rising since then but P/E is over 300, which seems very high even for a fast-growing company like Netflix.

I also bought 7 shares in PayPal (PYPL). The NASDAQ-100 Index (NDX) will add shares of PayPal before the market open on November 11 so I am hopeful the shares will rise, although they have lost value for the last three days. 

PayPal will replace Broadcom Corp. (BRCM). 

For more on this story, please see http://finance.yahoo.com/news/paypal-finds-another-etf-home-114528801.html.