Basic Technical Analysis
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Contents 1. Introduction to Technical Analysis 2. Understanding Market Trend 3. Chart Pattern 4. Candlesticks 5. Summary 3
1. TA Introduction 4
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
Introduction to Technical Analysis Technical Analysis Technical Analysis deals with Probability Distributions. It is not an exact science. 6
Introduction to Technical Analysis 2 Factors Price Volume 7
Introduction to Technical Analysis 3 Core Theories Market movement considers everything The prices move with the trend The history repeats itself 8
Introduction to Technical Analysis Chart 9
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
Introduction to Technical Analysis 3 Chart Types Line Chart Bar Chart Candlestick Chart 11
2. Understanding Market Trend 12
Understanding Market Trend THE TREND IS YOUR FRIEND 13
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
Understanding Market Trend Support and Resistance 15
Understanding Market Trend Support and Resistance 16
Understanding Market Trend Support and Resistance 17
Understanding Market Trend Support and Resistance 18
Understanding Market Trend Trend Line l Uptrend 19
Understanding Market Trend Trend Line l Downtrend 20
Understanding Market Trend Trend l Sideways Sideways Neutral/Sideways has a pattern of horizontal peaks and troughs. 21
Understanding Market Trend Moving Average Trend Indicator 22
3. Chart Pattern 23
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
Chart Pattern Bullish Reversal Pattern 25
Chart Pattern Bearish Reversal Pattern 26
Chart Pattern Bullish Continuation Pattern 27
Chart Pattern Bearish Continuation Pattern 28
Chart Pattern Continuation Patterns 29
4. Candlesticks 30
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 1991. 31
Candlesticks 3 Types of Candlestick White Candle (Bullish) Closing > Opening Price Black Candle (Bearish) Closing < Opening Price Neutral Candle (Neutral) Closing = Opening Price 32
Candlesticks Candlesticks l Neutral Pattern/Candle A sign of possible trend reversal Requires further confirmation using the next candle after the neutral candle 33
Q&A