Technical Analysis

Introduction to Technical Analysis

Contents ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

What’s Technical Analysis? ,[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Technical Analysis Does Not Look At…

Candlestick Charts ,[object Object],Up Down Opening Price Closing price Low Price of period High Price of period Opening Price Closing Price

Graph Time Resolutions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Trend – The Direction of Prices ,[object Object],Downtrend Uptrend Sideways Trend

Golden Rule of T. Analysis Trading ,[object Object],[object Object],[object Object],[object Object],[object Object],Trade With The Trend

Trend Characteristics - Price ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Trend Characteristics - Volume ,[object Object],[object Object],[object Object],[object Object],sideways uptrend uptrend growing sideways Small volumes Medium volumes growing

Trend Characteristics – Time Period ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Trendline ,[object Object],[object Object],[object Object],Intermediate term trendline Short term trendline

Support and Resistance Levels ,[object Object],[object Object],[object Object],[object Object],Support Level Resistance Level Breakout

Support and Resistance - 2 ,[object Object],Resistance line Support line Breakout Example: an uptrending security with parallel support and resistance lines ( price channel ) Note: support and resistance trendlines are not always parallel

Support and Resistance Role Reversal ,[object Object],[object Object],Breakout of support level turns it into a resistance level

Retracements ,[object Object],[object Object],[object Object],[object Object],[object Object]

The Risk of Retracements ,[object Object],[object Object],Example: in this downtrend there are two retracements. Buying the security at these times will result in loss.

Retracement Indicators- Price ,[object Object],[object Object],[object Object],38.2% 1. Price should retrace by no more than 66% of the size of the previous move Uptrend Retracement size 0 % Move size 50% 61.8% Retracement

Retracement Indicators - Other ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Summary - Med-Short Trends Example * Note how support and resistance level build at round numbers: 700, 800, 900… Strong down-trend Sideway Trend b/w 630-700 Uptrend Sideways Trend Retracement Starts at 700 and stops at 800 Retracement Uptrend stopped at 900 800 level induces a retracement 700 level breakout Small volumes Volume growth High Volumes 900 level broken Uptrend stopped at 1000 Up

How Should We Trade? Hold Buy long Sell Long Buy Short Hold short Sell Short

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Technical Analysis

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Technical Analysis