Technical Analysis

By Ross KlostermanCommon Cents Investment Group

Agenda

• What is TA?• How do we utilize TA?• Sample indicators• Interactive exercise• Conclusion

What is Technical Analysis?

Forecasting of future financial price movements

Based on an examination of past price movements

Not absolute predictions about the future.

Can help investors anticipate what is "likely" to happen to prices over time

How is Technical Analysis used?

Utilize various charts

Understand different chart indicators

Some examples:

Charts

Charts

Sample Indicators

RSI- momentum oscillator that measures the speed and change of price movements

Moving Average Convergence/Divergence (MACD) – one of the simplest and most reliable indicators

Bollinger Bands – allows users to compare volatility and relative price levels over a period of time.

Sample Indicators

Support – price level at which demand is thought to be strong enough to prevent the price from declining further

Resistance – price level at which selling is thought to be strong enough to prevent the price from rising further

ALL charts at ANY point in time have BOTH a support and resistance

Just to see… I utilize every

indicator on this chart

Conclusion

– TA is NOT the end-all-be-all– Combine with FA can be a deadly combo–www.stockcharts.com–What are your questions? Would you

like me to give you my opinion on any stock?