This document provides an overview of basic technical analysis. It discusses different types of charts used in technical analysis like line charts, bar charts, and candlestick charts. It also covers common technical analysis techniques like trend lines, support and resistance levels, moving averages, and chart patterns. The goal of technical analysis is to analyze historical price movements and volume data to identify patterns that can suggest future price behavior.

1. Basic Technical Analysis
www.yourinvestmentcoach.com.au

2. Disclaimer
This Disclaimer is made for the purposes of the Corporations Act 2001 as amended by the Financial Services Reform Act 2001
("the Acts").
Your Investment Coach Pty Ltd
Your Investment Coach ABN 71 161 417 241 (“YIC") is coaching organisation that aims to provide investing education and
coaching solutions. In In furthering its aims YIC offers general information through its workshops and presentations.
YIC has no Australian Financial Services Licence (“AFSL”) under Part 7 of the Corporations Act 2001 as amended.
Does not contravene the Acts
YIC, its officers, agents, representatives, and employees do not hold an AFSL and does not purport to give advice or operate in any
way in contravention of the Acts. YIC, its officers, agents, representatives, and employees exclude all liability whatsoever, in
negligence or otherwise, for any loss or damage relating to this publication to the full extent permitted by law.
Provides Information only
This workshop/presentation has been prepared for information purposes without consideration of any reader's specific
investment objectives, personal financial situations or needs. Because of this, no reader should rely upon the information
and/or recommendations presented. Readers should, before acting on any information contained herein, consider the
appropriateness of the information, having regard to their objectives, financial situation and needs.
YIC believes that the material contained in this workshop/presentation is based on the information from sources that are
considered reliable and is accurate when issued. However, YIC does not warrant its accuracy or reliability. All views and
information expressed by YIC, its officers, agents, representatives, and employees are for the purposes of discussion only.
If this workshop/presentation, or any information, relates to the acquisition, or possible acquisition, of a particular financial
product, participants should obtain a product disclosure statement relating to the product and consider that statement, and
should consult a licence person before making any decision about whether to acquire the product.
The opinions expressed in this presentation are those of the authors and do not necessarily reflect the views of the ASA.
www.yourinvestmentcoach.com.au

3. Workshop Purpose
• Basic theory
• Share experiences with fundamental and
technical analysis
• ASA members collectively have a large pool
of knowledge
• Draw on experience from the group
• Focus on interactive sessions
www.yourinvestmentcoach.com.au

4. Fundamental or Technical?
Two main approaches to analysing markets
Fundamental analysis
• Financial and economic theory
• Company financial performance
Technical Analysis
• Examines current and past price action
• Looks for high probability patterns
www.yourinvestmentcoach.com.au

5. Fundamental or Technical?
Should your analysis use fundamental or
technical?
There is not one right answer!
• Personal preference
• Whatever feels best for you
• Learn them both and try them out
Possible Solution: FA to select
companies & TA to time the entry
and exit
www.yourinvestmentcoach.com.au

6. What is Technical Analysis
– Technical analysis is the study of the price and volume
movements of a stock or market.
– It is based on the belief that everything that is known about
a stock is reflected in the share price and the volume of
shares traded.
– Technical analysis tells investors when to buy or sell by
providing insights into market sentiment and emotion
– Can be used on all timeframes – daily, weekly, monthly
– Covers many techniques. We are able to cover only a few
…
www.yourinvestmentcoach.com.au

7. What’s involved?
– Dow Theory
– Price Charts
– Chart Patterns
– Candlestick Patterns
– Indicators
– Fibonacci
– Elliot Wave
– W.D Gann Theory
– Cycles
– ...... Plus a whole lot more!
www.yourinvestmentcoach.com.au

8. Introduction
1. Different types of charts
2. Classical methods
3. Pattern recognition
4. Software for technical analysis
www.yourinvestmentcoach.com.au

9. Chart Types
Technical analysis uses data based on
price open, low, high, close and volume.
The data are presented as charts. There are
many different types of charts – we will
consider three…
www.yourinvestmentcoach.com.au

10. Line Chart
www.yourinvestmentcoach.com.au

11. Bar Chart
www.yourinvestmentcoach.com.au

12. Candle Chart
www.yourinvestmentcoach.com.au

13. Candlestick
www.yourinvestmentcoach.com.au

14. Candle Patterns
• Bullish
• Bearish
• Doji
• Shooting Star
• Hammer
• Harami
• Engulfing
• Piercing
• Hanging Man
• Evening Star
www.yourinvestmentcoach.com.au

15. Candle Patterns
www.yourinvestmentcoach.com.au

16. Dojis
www.yourinvestmentcoach.com.au

17. Harami
www.yourinvestmentcoach.com.au

18. Candle Patterns
www.yourinvestmentcoach.com.au

19. Candlestick Summary
Learning to read candle patterns which are a
visual representation of market psychology
and emotion can be very useful
• Candle basics – open, high, low, close
• Length of body – long or short?
• Length of tails – or absence of tails
• Can suggest a possible change in trend
• With other ‘western’ techniques
www.yourinvestmentcoach.com.au

20. Dow Theory
• Proposes that markets are cyclical
• That markets go through bull and bear cycles
• Within each cycle different phases can be recognized
• These different phases represent different risk situations
Consider the different phases of the S&P500...
www.yourinvestmentcoach.com.au

21. S&P 500
www.yourinvestmentcoach.com.au

22. Trend Lines
Perhaps the simplest form of technical analysis
Markets are not random they often move in trends…
www.yourinvestmentcoach.com.au

23. Counter Trends
www.yourinvestmentcoach.com.au

24. Support
A support level is the price at which buyers are
expected to enter the market in sufficient
numbers to take control from sellers.
Can be horizontal or sloping upward
www.yourinvestmentcoach.com.au

25. Resistance
A resistance level is the price level at which sellers
are expected to enter the market in sufficient
numbers to take control from buyers.
Can be horizontal or sloping downward
www.yourinvestmentcoach.com.au

26. Support & Resistance
www.yourinvestmentcoach.com.au

27. Moving Averages
‒ Moving averages are a way of coping with the
problem of random information.
‒ Moving Averages are lagging indicators and
are the basis of many other indicators
‒ Takes data points and plots them as an
average making it easier to discern trends
www.yourinvestmentcoach.com.au

28. Plotted Moving Average
www.yourinvestmentcoach.com.au

29. Multiple Moving Averages
www.yourinvestmentcoach.com.au

30. Chart Patterns
Chart patterns reflect human behaviour in a market.
The following chart patterns offer a high probability of future
market movement and can be used to select stocks or to
time entries into stocks.
(a) Continuation patterns
• The triangle
• The flag
(b) Reversal patterns
• Double tops
• Head and shoulders
www.yourinvestmentcoach.com.au

31. Reversal or Continuation
www.yourinvestmentcoach.com.au

32. Ascending Triangle
www.yourinvestmentcoach.com.au

33. Flag
www.yourinvestmentcoach.com.au

34. Double Top
www.yourinvestmentcoach.com.au

35. Head and Shoulders
www.yourinvestmentcoach.com.au

36. Bottom Reversal Patterns
www.yourinvestmentcoach.com.au

37. Summary
Technical Analysis does not provide a forecast.
It provides tools to gauge the probability that a
future event may occur.
Always be aware of the time frame – look at the
longest time frame charts first to get the big
picture.
Generally signals in longer time frames are more
reliable than those in shorter time frames.
www.yourinvestmentcoach.com.au