Upload
mrinal-sandbhor
View
227
Download
0
Embed Size (px)
Citation preview
8/8/2019 Demystify Techncial Analysis Sesssion 1
1/23
1
Technical AnalysisTechnical Analysis
Demystify Technical Analysis
2 Technical Analysis
Agenda
Orientation Introduction to the course. Rules and Regulations. Expectation etc.
Introduction to Technical Analysis. What is Fundamental Analysis. What is Technical Analysis, Comparison between Technical and Fundamental Analysis.
Some Basic Concepts. Line Chart BarChart Candlestick Chart
Trends Up Trend Down Trend Side Ways Trend
Trend lines and Properties. What is Valid Trend lines and Properties
Trading Technique forTrend lines.
8/8/2019 Demystify Techncial Analysis Sesssion 1
2/23
2
3 Technical Analysis
Human Emotions
4 Technical Analysis
Your forecasting toolkit
Fundamental analysis
Technicalanalysis
A method of forecasting basedon basic economic, political and
environmental factors
A method of predicting pricemovements and future markettrends by studying charts of
past market action, price,volumes and open interest.
8/8/2019 Demystify Techncial Analysis Sesssion 1
3/23
3
5 Technical Analysis
Fundamentally Strong Company Technically Strong Company.
6 Technical Analysis
Fundamentally Strong Company Technically Strong Company.
8/8/2019 Demystify Techncial Analysis Sesssion 1
4/234
7 Technical Analysis
Basics
A good graphics package with gooddata behind it.
Set aside some time every day to flick through thecharts of what you trade.
Dont get fixatedon day-to-day, look at theweekly, monthly and yearly charts.
Dont get so focusedon the near-term action thatyou lose sight of the bigger picture.
8 Technical Analysis
Principles of Technical analysis
The current pricediscounts everything
Patterns exist
History repeats itself
8/8/2019 Demystify Techncial Analysis Sesssion 1
5/23
5
9 Technical Analysis
The current price discounts everything
10 Technical Analysis
History repeats itself
8/8/2019 Demystify Techncial Analysis Sesssion 1
6/23
6
11 Technical Analysis
History repeats itself
12 Technical Analysis
Strengths
Can be usedon almost anyinstrument
Can be used to analyse data over awide range of time periods
There are many charting tools andtechniques
The basic principle of charting iseasy tounderstand
8/8/2019 Demystify Techncial Analysis Sesssion 1
7/23
7
13 Technical Analysis
Technical Analysis would work almost on all Instruments
14 Technical Analysis
Weaknesses
It is subjective ie. open toindividual interpretation
The past does not necessarilyrepeat itself
It is basedon probability notcertainty
The data used must be timely andaccurate
8/8/2019 Demystify Techncial Analysis Sesssion 1
8/23
8
15 Technical Analysis
Trends
16 Technical Analysis
Basic Concepts of Trend
There are three trendsUPDOWNSIDEWAYS
There are three decisionsGO LONGGO SHORTSTAY OUT OF THE MARKET
8/8/2019 Demystify Techncial Analysis Sesssion 1
9/23
9
17 Technical Analysis
Dont buck the trend, because the trend is your friend
18 Technical Analysis
Up Trend
8/8/2019 Demystify Techncial Analysis Sesssion 1
10/23
10
19 Technical Analysis
Up Trend
20 Technical Analysis
UPTREND
8/8/2019 Demystify Techncial Analysis Sesssion 1
11/23
11
21 Technical Analysis
Down Trend
22 Technical Analysis
Down Trend
8/8/2019 Demystify Techncial Analysis Sesssion 1
12/23
12
23 Technical Analysis
Sideways Market
24 Technical Analysis
Sideways Market
8/8/2019 Demystify Techncial Analysis Sesssion 1
13/23
13
25 Technical Analysis
Short-term and Longer-term trends
A trend has three classificationsMAJORINTERMEDIATENEAR-TERM
Broadly three time horizonsLONGER THAN A YEARONE TO THREE MONTHSONE WEEK TO ONE MONTH
26 Technical Analysis
Short-term and Longer-term trends
8/8/2019 Demystify Techncial Analysis Sesssion 1
14/23
14
27 Technical Analysis
Three Stages of a Trend
Accumulation
Big Move
Excess
Distribution
Big Move
Despair
Bull Market Bear Market
28 Technical Analysis
Basic typesof charts
8/8/2019 Demystify Techncial Analysis Sesssion 1
15/23
15
29 Technical Analysis
Chart types
Line
Bar
Candlestick
30 Technical Analysis
Line charts
The line chart is the simplest form of chart joining a series of points forinstrument data on the vertical axis (Y-axis) and a timescale on thehorizontal axis (X-axis).
Line charts are not frequently used today.
Typically Bid, Ask, High, Low or Close prices are used for the vertical axisand timescales used can vary from tick (every price plotted consecutively)to hourly, daily and weekly.
8/8/2019 Demystify Techncial Analysis Sesssion 1
16/23
16
31 Technical Analysis
BarCharts
Open
Close
High
Low
32 Technical Analysis
Candlestick
8/8/2019 Demystify Techncial Analysis Sesssion 1
17/23
17
33 Technical Analysis
Very simple signals
Uptend Downtrend
34 Technical Analysis
Reversal days
8/8/2019 Demystify Techncial Analysis Sesssion 1
18/23
18
35 Technical Analysis
The two-day reversal
36 Technical Analysis
Properties of Trend Line
The greater the numberof touches the more
important the trend line becomes.
The angle of Trendline
Extension of Trend line.
Trendline with Chart patterns
Spacing of the two points
8/8/2019 Demystify Techncial Analysis Sesssion 1
19/23
19
37 Technical Analysis
Numberof Touches
38 Technical Analysis
Extension of Trendline
8/8/2019 Demystify Techncial Analysis Sesssion 1
20/23
20
39 Technical Analysis
Incorrect Angle
40 Technical Analysis
Trendline with Chart Patterns
8/8/2019 Demystify Techncial Analysis Sesssion 1
21/23
21
41 Technical Analysis
Spacing between 2 points
42 Technical Analysis
Trading Trendlines
8/8/2019 Demystify Techncial Analysis Sesssion 1
22/23
22
43 Technical Analysis
Trading the Trendline
44 Technical Analysis
End of Session 1
8/8/2019 Demystify Techncial Analysis Sesssion 1
23/23
23
45 Technical Analysis
Session 2
Identifying good Support and Resistance Level What is good Support ? What is good Resistance ? Properties of good Suppo rt and Resistance .
Fibonacci Numberand Ratio. Fibonacci Numbers and Ratio Retracement Extension
Identifying Chart Patterns. Double Top Double Bottom Tripple Top Tripple Bottom Head and Shoulder and Inverted Head and ShoulderPattern. Triangles (Ascending , Descending Symmetrical Triangles) Cup and Handle Pattern Wedges and Flags and Pennants
Candelstick Patterns Doji Bullish and Bearish Engulfing Hanging Man , Hammer Morning Starevening star The Dark Cloud Cover Island Reversal The Kicker