Technical Analysis: Session 2 @ alphatrader.in

1. Private & Confidential
- 1 -
Suzlon Energy
CA Capital presentation for future funding alternatives
November 18, 2012
Ajusal Sugathan 1111077
Session 2: Technical Charts
presents
Technical Analysis

2. Private & Confidential
- 2 -
Summer Internship
2013
Technical Analysis
2Session 2: Technical Charts
Charts are the working tools of technical analysts. They are used to plot price and volume
movements over specific time frames.
Why Charts?
X-Axis: Typically represents time
Y-Axis: Typically represents price or volume
 Volumes represent the number of
stocks that are actually trade hands
in a particular price range
 Price movements are more
significant when the volumes are
above average
Price
chart
Volume
Chart

3. Private & Confidential
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Summer Internship
2013
Technical Analysis
3Session 2: Technical Charts
Charts: Time Scale
Charts are drawn
with the X-axis as a
time scale, hence
generating a time
series plot
Daily Chart Weekly Chart
Time Scale Details
Intraday Chart drawn for a time period within a day (minutes/hours etc)
Daily Chart drawn using only end of day data (high/low/close)
Weekly Chart drawn using weekly high/low/close data
Monthly Chart drawn using monthly high/low/close data

4. Private & Confidential
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Summer Internship
2013
Technical Analysis
4Session 2: Technical Charts
Types of Charts
Types of Technical Charts
Line Charts CandlesticksBar Charts

5. Private & Confidential
- 5 -
Summer Internship
2013
Technical Analysis
5Session 2: Technical Charts
Line Charts
Line charts are formed by connecting the closing prices of a stock/market over a period
 Easy to visualize the trend of stock/market
 Very simple and easy to understand
Advantages

6. Private & Confidential
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Summer Internship
2013
Technical Analysis
6Session 2: Technical Charts
Bar Charts
Most popular chart used to measure price action in a stock over a period of time
 Very useful for short time periods to gauge
price movements
 Very useful in quickly spotting trends and
patterns
Advantages
Open: The left side tick shows the opening price
High: The top most point of the chart shows the high price
Low: The lowest point of the chart shows the low price
Close: The right side tick shows the closing price

7. Private & Confidential
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Summer Internship
2013
Technical Analysis
7Session 2: Technical Charts
Candlesticks
Candlestick charts provide visual insight into current market psychology
 Very easy to visualize the relationship
between open and close
 Traders consider candlestick charts more
visually appealing and easier to interpret
Advantages
Black or Green Bar: Close < Open => Price has gone down
White or Red Bar: Close > Open => Price has gone up
High: The top most point of the chart shows the high price
Low: The lowest point of the chart shows the low price
Open: Upper/ower point of the body based on filled/unfilled
Close: Lower/upper point of the body based on filled/unfilled

8. Private & Confidential
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8
Summer Internship
2013
Technical Analysis
AJUSAL SUGATHAN
Author Profile
Ajusal Sugathan is the author and founder of Alpha Trader. He currently serves as managing director
of Hedge Quants, a quant hedge fund based in India. He holds a PGDM in finance from the Indian
Institute of Management (IIM), Bangalore and a BE (Hons.) from the Birla Institute of Technology &
Science (BITS). He has worked with Avendus Capital and Mercedes-Benz R&D in the past. He
currently develops quantitative trading strategies and algorithms for trading financial instruments.
E-mail: ajusal@alphatrader.in
Linkedin: in.linkedin.com/in/ajusal
Alpha Trader
230/B, AJC Bose Road,
2nd Floor, Opp Minto Park,
Kolkata – 700020
E-mail: info@alphatrader.in
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