Technical Analysis for Traders - Concise guide to picking direction.
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The document discusses two main forms of analyzing price movements - technical analysis and fundamental analysis. Technical analysis looks at historical price data, trends, and patterns to analyze future price movements, while fundamental analysis considers underlying company financials and market forces. The document focuses on technical analysis and how traders use charts like candlestick charts to identify support and resistance levels and interpret trends to systematically pick the direction of an asset's price movement.
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Technical Analysis for Traders - Concise guide to picking direction.
- 1. An introduction to PICKING DIRECTION TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders traders circle circle
- 2. Most trading decisions are made by understanding the direction of the underlying asset. TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 3. There are two main forms of price movement analysis… TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 4. Technical Analysis TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 Fundamental Analysis traders circle
- 5. In a nutshell, technical looks at price and fundamental looks at value.
- 6. Technical Analysis considers: Current price Price Historical price Price trends & patterns TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 7. Technical analysis is looking at the price, without taking into consideration what the company is and does. TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 8. Fundamental Analysis considers: Company results Value Industry reports Product/service demand TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 9. Traders tend to use technical analysis to make decisions. Why? TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 10. Technical analysts believe past price movements and sentiment can give insight into future movements. TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 11. We analyse the price by using charts. Lorem Ipsum Dolor
- 12. Charts visually represent the price movement of a stock. TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 13. These movements can allow traders to interpret direction through patterns and formations. TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 14. To interpret a chart, traders first determine where support & resistance are... TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 15. Support is the lowest price traders are willing to sell before the buyers come in and start buying the stock. Support TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 16. Resistance is the highest price traders are willing to buy before the sellers come in and start selling the stock. Resistance TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 17. The trend is the overall direction of the stock over a longer period of time. Trend TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 18. Sometimes a stock moves neither up nor down, but channels between its support and resistance. Channel TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 19. Technical analysts look at different charts depending on what they need to know. TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 20. Open High Low Close Chart The daily OHLC price bar represents one day of trading. TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 21. A closer look at the OHLC price bar... Highest Price Close (Current Price) Open Price Lowest Price TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 22. Candlesticks Charts show the same information as OHLC, but highlight the relationship between opening and closing prices. TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 23. They show a clearer picture of who is in control of the stock, and reveal patterns that other charts don’t show. TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 24. A closer look at candlesticks... Highest price Closing price Highest price Opening price Opening price Lowest price Closing price Lowest price TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 25. Line charts are a simple way of viewing price movement, and are helpful to identify support, resistance and the overall trend. TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 26. By using technical analysis, you can look at price movement objectively... TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 27. And develop a systematic and methodical approach to picking direction. TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 28. But ensure that you understand and practise it before using real money. TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 29. Would you like to learn how a professional trader uses Technical Analysis to pick direction? TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 30. Learn the step-by-step approach a professional trader uses to pick direction... Register your details to learn more about our trading courses. TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 31. Warnings and important information. Any advice contained in this communication is general only and does not consider your objectives, financial situation or needs, and you should consider whether it’s appropriate for you. If you are thinking about acquiring a financial product, you should consider our Financial Services Guide (FSG) at www.traderscircle.com.au and the relevant Product Disclosure Statement (if there is one available) first. Trading options is not suitable for everyone. There is a risk that you can lose more than the value of a trade or its underlying assets. You should only act on our recommendations if you are confident that you fully understand what you are doing. Past returns do not reflect future returns, and it is also possible to make significant losses. We employ expert traders and use strategies that maximise returns and minimise risk. However, there is always a risk of loss when trading and investing. This is general information, and is not prepared for your specific investment objectives, financial situation or needs. Consult a licensed investment adviser before making investment decisions. TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041. TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle
- 32. Learn the step-by-step approach a professional trader uses to pick direction... Register your details to learn more about our trading courses. TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 traders circle