Basic Technical Analysis

Transcription

1 Basic Technical Analysis

2 Disclaimer You may from time to time be provided with marketing material, investment & financial related information and reports, including but not limited to research reports and market or securities specific analysis. Please note that the information is provided for you by way of information only. All of the information, report and analysis were and should be taken as having been prepared for the purpose of general circulation and that none were made with regard to any specific investment objective, financial situation or the needs of any particular person who may receive the information, report or analysis (including yourself). Any recommendation or advice that may be expressed in or inferred from such information, reports or analysis therefore does not take into account and may not be suitable for your investment objectives, financial situation and particular needs. 2

3 Contents 1. Introduction to Technical Analysis 2. Understanding Market Trend 3. Chart Pattern 4. Candlesticks 5. Summary 3

4 1. TA Introduction 4

5 Introduction to Technical Analysis Technical Analysis Forecast of future price movement based past price action Technical analysts do not attempt to measure a security's value 5

6 Introduction to Technical Analysis Technical Analysis Technical Analysis deals with Probability Distributions. It is not an exact science. 6

7 Introduction to Technical Analysis 2 Factors Price Volume 7

8 Introduction to Technical Analysis 3 Core Theories Market movement considers everything The prices move with the trend The history repeats itself 8

9 Introduction to Technical Analysis Chart 9

10 Introduction to Technical Analysis Visuals Averages Oscillators TA Indicators Visuals Lines, Pattern, Candlestick, Fibonacci Averages MA, Bollinger Band Oscillators RSI, MACD, Stochastic, Williams %R 10

11 Introduction to Technical Analysis 3 Chart Types Line Chart Bar Chart Candlestick Chart 11

12 2. Understanding Market Trend 12

13 Understanding Market Trend THE TREND IS YOUR FRIEND 13

14 Understanding Market Trend Uptrend Downtrend Sideways Uptrend has a pattern of rising peaks and troughs Downtrend has a pattern of lower peaks and troughs Sideways has a pattern of horizontal peaks and troughs (Also known as Trendless) 14

15 Understanding Market Trend Support and Resistance 15

16 Understanding Market Trend Support and Resistance 16

17 Understanding Market Trend Support and Resistance 17

18 Understanding Market Trend Support and Resistance 18

19 Understanding Market Trend Trend Line l Uptrend 19

20 Understanding Market Trend Trend Line l Downtrend 20

21 Understanding Market Trend Trend l Sideways Sideways Neutral/Sideways has a pattern of horizontal peaks and troughs. 21

22 Understanding Market Trend Moving Average Trend Indicator 22

23 3. Chart Pattern 23

24 Chart Pattern Chart Pattern A distinct formation on a stock chart that creates a sign of future price movements 2 Category of Chart Patterns - Reversal Patterns - Continuation Patterns 24

25 Chart Pattern Bullish Reversal Pattern 25

26 Chart Pattern Bearish Reversal Pattern 26

27 Chart Pattern Bullish Continuation Pattern 27

28 Chart Pattern Bearish Continuation Pattern 28

29 Chart Pattern Continuation Patterns 29

30 4. Candlesticks 30

31 Candlesticks Candlesticks Charting Developed by Japanese Rice Farmers in 16 th Century Popularized by Steve Nison after his publication of Japanese Candlestick Charting Techniques in

32 Candlesticks 3 Types of Candlestick White Candle (Bullish) Closing > Opening Price Black Candle (Bearish) Closing < Opening Price Neutral Candle (Neutral) Closing = Opening Price 32

33 Candlesticks Candlesticks l Neutral Pattern/Candle A sign of possible trend reversal Requires further confirmation using the next candle after the neutral candle 33

34 Q&A