Charts and charting are one of the ways the market talks to you. The first time you look at a chart it is pretty much meaningless. But as you learn to use the many studies that are applied to a chart it becomes easier to understand what that chart is telling you.
The most important aspect of reading a chart is determining support and resistance. So what the heck are support and resistance and what makes them so important.
FYI. I removed six simple moving average lines and the Keltnor Channel from this chart to make it easier to read.
When a stock is falling support is a prior areathat the stock found willing buyers at when it was falling and it reversed direction and started to recover from its fall. Conversely, resistance is where a stock finds more sellers than buyers and starts to fall.
In the chart above there are four different panels with different studies in each of them. The upper panel with labeled support and resistance lines are all I will address here. The lowest labeled support line would be consider very strong support by me. To find the support structure for $409.83 go back to 1-21-2015. NFLX is currently at $633.00 as I write this. Even on horrible news it would get a $25 to $30 bounce off this level just because it had fallen by a third and there are willing buyers waiting at this level.
From the $409.83 level there are two small reversal candles that are also support levels, but they are very small and only a pause in direction and thus very weak support. If the fall in a stock is overdone the stock COULD(not likely but possible) reverse on one of these.