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Learning on-LineLearning on-Line
Fundamentals of
Technical Analysis…
Using CompleteTrader
ToolsTools… and…… and…T - IndicatorsT - Indicators
Learning on-LineLearning on-Line
Learn on-LineLearn on-Line
AboutAbout
Rules For Drawing Trend LinesRules For Drawing Trend Lines
Beginner… Beginner… SessionSession……
Learning on-LineLearning on-Line
When The AnimationsWhen The Animations
StopStop
Just Click Your…Just Click Your…
Left Mouse ButtonLeft Mouse Button
To… Continue…To… Continue… Click Click Now!Now!
Learning on-LineLearning on-Line
Trend Lines are Powerful Tools That Will Help You Trend Lines are Powerful Tools That Will Help You
Identify When A Stock Is Changing Trend Direction!Identify When A Stock Is Changing Trend Direction! Trend Lines Will Spot Break Out Points!Trend Lines Will Spot Break Out Points!Trend Lines Will Keep You On The Right Side Of The Trend Lines Will Keep You On The Right Side Of The
Market!Market!
CompleteTrader Has Specific Rules To Help You CompleteTrader Has Specific Rules To Help You
Draw Valid And Reliable Trend Lines!Draw Valid And Reliable Trend Lines!
Trend Line Basics!Trend Line Basics!
ClickClick
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Trend Line Rules!Trend Line Rules!
Trend Lines Are Drawn On What We Call…
Points!Points!High Point
1-Days Trading Range
Low Point
Close For The Day… Point
Not A… Point… At This End
All… Points… Occur on the Vertical Price Bar
ClickClickClickClickClickClickClickClickClickClick
11…… You will notice that you need a MinimumMinimum of… ThreeThree Trading Days… Trading Days… to start a trend line.
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How To Use How To Use PointsPoints To Draw Down Trend Lines! To Draw Down Trend Lines!
DownDown…… Trend Lines…Trend Lines… Are Drawn On…
The Stock’s Highest Price (Point)…(Point)… for the Day…
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Let’s See How Using… Points…Points… Creates Trend Lines!
2 -Points2 -Points11 22
33
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ThreeThree Trading Trading DaysDays
(A(A= aggressive)… aggressive)… DownDown Trend Trend LineLine
2…2… a MinimumMinimum of TwoTwo Points… Points… on the trend line.
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3…3… and… 1- Penetration…1- Penetration… Above…Above… the trend line… that is not a… Closing Price… Closing Price… to make the trend line… Valid… Valid…
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4…4… If you can’t get a… Penetration…Penetration… Above…Above… the down trend line… you will need a MinimumMinimum of… Three Points… Three Points… on the trend line to make it… Valid…Valid…
5…5… You will also notice that not all Points fall on the trend line… this Point is this Point is BelowBelow the Trend Line… the Trend Line… You could have any number of points below the trend line… and still have a… Valid…Valid… down trend line.
11…… You will notice that you need a MinimumMinimum of… ThreeThree Trading Days… Trading Days… to start a trend line.
2…2… you need a MinimumMinimum of TwoTwo Points… Points… on the trend line.
3…3… and… 1- Penetration…1- Penetration… Below…Below… the trend line… that is not a… Closing Price… Closing Price… to make the trend line… Valid… Valid…
4…4… If you can’t get a… Penetration…Penetration… Below…Below… the up trend line… you will need a MinimumMinimum of… Three Points… Three Points… on the trend line to make it… Valid…Valid…
5…5… You will also notice that not all Points fall on the trend line… this Point is this Point is AboveAbove the Trend Line… the Trend Line… You could have any number of points above the trend line… and still have a… Valid…Valid… up trend line.
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How To Use How To Use PointsPoints To Draw… To Draw… UpUp… Trend Lines!… Trend Lines!
UPUP…… Trend Lines…Trend Lines… Are Drawn On…
The Stock’s Lowest Price (Points)… for the Day…
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2 -Points2 -Points
11 22 33
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ThreeThree Trading Trading DaysDays
EW- AEW- A = ( (EEarly arly WWarning arning A=A=aggressive) aggressive) UpUp -Trend Line-Trend Line
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To Look For… To Look For…
Points On Price Highs…Points On Price Highs…
To Draw… To Draw… DownDown …Trend Lines …Trend Lines
To Look For…To Look For…
Points On Price Lows…Points On Price Lows…
To Draw… To Draw… UpUp …Trend Lines …Trend Lines
Three Trading Days…Three Trading Days…
To Start A Trend LineTo Start A Trend Line
Two Points And…Two Points And…
One-Penetration…One-Penetration…
To Draw A… To Draw A… ValidValid …Trend Line… or… …Trend Line… or…
Three Points And…Three Points And…
No-Penetration…No-Penetration…
To Draw A… To Draw A… ValidValid …Trend Line… …Trend Line…
This New Tool… This New Tool… Because…Because…
Turbo-1…Turbo-1… andand ……Turbo-3Turbo-3
Tells Us Where To Draw Trend LinesTells Us Where To Draw Trend Lines
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Let’s Now Draw Trend Lines On Stock Charts!Let’s Now Draw Trend Lines On Stock Charts!
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But, First, But, First, We Need To Master One More…We Need To Master One More… Priceless ToolPriceless Tool!!
Remember:Remember: We Just Learned That… We Need… We Just Learned That… We Need…
ClickClickClickClickClickClickClickClickClickClick
Let’s See How This Works!Let’s See How This Works!
Correct Trend Lines… Correct Trend Lines… Pinpoint Important Trend Reversals!Pinpoint Important Trend Reversals!
Learning… Learning… How To Find Reversals Points In Trend Direction…How To Find Reversals Points In Trend Direction…Is A Profit Opportunity!Is A Profit Opportunity!
Trend Lines… Trend Lines… Are Invaluable Tools That Locate…Are Invaluable Tools That Locate…Trend Reversal Points… Trend Reversal Points… If Drawn Correct!If Drawn Correct!
Stocks Move In Patterns Called…Trends!Stocks Move In Patterns Called…Trends!
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Stocks Move In Patterns Called…Trends!Stocks Move In Patterns Called…Trends!
Three Basic Trends…
UP…UP…DOWN…DOWN…
Side-Ways…Side-Ways…
Take A MomentTake A Moment…… To See If You To See If You Can Locate a Place On This Can Locate a Place On This Chart Chart To Draw… To Draw… A Down Trend LineA Down Trend Line!!
Its So Easy To Draw Trend Lines That Are… Its So Easy To Draw Trend Lines That Are… Deceiving!Deceiving!
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ClickClick
Let’s Start With A…Let’s Start With A… Down Trend Line! Down Trend Line!
Trend Lines Trend Lines Are…Are… Straight Lines Straight Lines
Look ForLook For Two Points And A Two Points And A
PenetrationPenetrationTo Draw A Trend Line On!To Draw A Trend Line On!
They Connect Two Points They Connect Two Points And Have…And Have…
One Penetration!One Penetration!
.
Penetration1
2
.
2
(A)
.
Break Out
Close AboveClose Above…… A Trend A Trend Line Is Called A…Line Is Called A… Break Break
Out!Out!
This Was Not A…This Was Not A…Trend Changing Break Trend Changing Break
Out!Out!
Because The Stock… Because The Stock… Did Did Not GoNot Go UP… UP… After The After The
Break-Out!Break-Out!
Remember:Remember: Not All Not All Break Break Outs… Outs… Are Trend Are Trend
Changing!Changing!
Some Are…Some Are… False Break Outs!False Break Outs!
This Is Not…This Is Not… What We Are Looking For!What We Are Looking For! We Want A… We Want A… Break Out…Break Out… And The Stock And The Stock
Goes… Goes… UP!UP!
Let’s Draw Another… Let’s Draw Another… Down Trend Line!Down Trend Line!Another…Another…Break Out!Break Out!
This… This… Break Out IsBreak Out Is Bigger…Bigger… And And
Looks… Looks… Stronger!Stronger!
Is This The… Is This The… Break Out…Break Out… We Are Looking For?We Are Looking For?
ClickClickClickClickClickClickClickClickClickClickClickClickClickClickClickClickClickClickClickClickClickClickClickClickClickClickClickClickClickClickClickClickClickClickClickClick
As You Can See…This Was Not TheThis Was Not The Break Break
Out…Out… We Were Looking For…Either!Either!
It Took 5…5… FalseFalse Break Break Outs…Outs… Before We Got
The… One…One… We Were We Were Looking For!Looking For!
We Need A… DependableDependable ToolTool To Overcome All These… FalseFalse
Break Outs!…Break Outs!…
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If you have used trend lines to help locate entry points, no If you have used trend lines to help locate entry points, no doubt you have jumped on many… doubt you have jumped on many… False Break-Outs!False Break-Outs!
Market makers, Specialist and Professional Investors know Market makers, Specialist and Professional Investors know that after a number of days that a stock has been going that after a number of days that a stock has been going down… Traders and Investors will look at a strong up-move as down… Traders and Investors will look at a strong up-move as a… a… NewNew Break Out… Break Out… and these uninformed or bargain hunting and these uninformed or bargain hunting investors will reason they should get on this new break out, investors will reason they should get on this new break out, before it moves too far away from them. But, these break before it moves too far away from them. But, these break outs are not trend changing moves… outs are not trend changing moves… They Are Traps… that They Are Traps… that the uninformed fall into.the uninformed fall into.
If you have ever fallen into these…If you have ever fallen into these…False Break-Out Traps…False Break-Out Traps… you know how devastating they can be to your… you know how devastating they can be to your… Bottom Line.Bottom Line.
In the next session on drawing trend lines, we will introduce In the next session on drawing trend lines, we will introduce you to a… you to a… New ToolNew Tool…… that will tell you if a strong up move is that will tell you if a strong up move is
one of these… one of these… False Break-Out Traps… or… the Break-Out you False Break-Out Traps… or… the Break-Out you should be on!should be on! ClickClickClickClickClickClickClickClick
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This EndsThis Ends
This SessionThis Session
OnOn
Beginner… Beginner… Session!Session!
Rules For Draw Trend LinesRules For Draw Trend Lines
