This document provides an overview of technical analysis approaches for understanding the market. It discusses the philosophy and assumptions behind technical analysis, including that prices move in trends and history repeats itself. It defines key concepts like trends, support and resistance, and different charting styles. It also covers reversal and continuation patterns, the principle of confirmation and divergence, and introduces MetaTrader 4 platform and indicators. The document is the first part of an outline on technical analysis and previews topics to be covered in more depth in part two.
This document provides an introduction to technical analysis tools and techniques. It begins by explaining different types of stock price charts, including line charts, bar charts, and candlestick charts. It then discusses moving averages and how they can be used to identify trends. Support and resistance levels are explained as important trend lines. The document also covers envelopes, Bollinger Bands, and Parabolic SAR as additional technical indicators. It emphasizes that these tools should be used together to analyze trends and identify entry and exit points for trades.
An overview of technical analysis and its common techniques (Candlestick , MACD, Parabolic SAR, RSI, Bolinger Bands etc) - given to brokers and managers of Nepal Derivative Exchange (NDEX) by Mr. Sohan Khatri (Resource person - Management Association of Nepal, Adjunct Faculty - Ace Institute of Management, Kathmandu College of Management)
Would you like to learn secrets of price action trading which is used in every day trading by a 15 years trader? Continue reading on to learn real examples of how price action trading works on Forex, stock futures and gold charts!
This document provides an overview of market trending in forex trading. It discusses the three types of market trends - uptrend, downtrend, and sideways. An uptrend is identified when the price breaks above the high of the previous candlestick, while a downtrend is identified when the price breaks below the low. Sideways trends occur when there is little price movement and candles form dojis. It also describes how to identify a weakening trend through indicators like shadow length, decreasing volume, and stochastic signals. The best entries are at support and resistance levels on smaller time frames once the trend is confirmed on larger time frames.
The document provides an introduction to technical analysis (TA), covering some of its basic concepts and techniques. It discusses TA basics like price charts and trends. It then explains common basic formations like trend lines, channels, and reversal patterns. The document also introduces Japanese candlestick patterns and popular technical indicators like moving averages and the MACD. It emphasizes that TA analyzes past price and volume data to identify patterns that may forecast future price movements.
Stop Trading Support And Resistance The Wrong WayNetpicksTrading
Stop Trading Support And Resistance The Wrong Way
- See more at: http://www.netpicks.com/support-resistance/
Support and resistance trading is a popular technical analysis method of trading. The bad part is that many traders enter trades blindly at these levels without a firm understanding of what they mean.
Learn about trading support and resistance and see if your trading results improve.
- See more at: http://www.netpicks.com/support-resistance/
- Visit our website: http://www.netpicks.com/
- Download the free indicator blueprint: http://www.netpicks.com/blueprint/
- Options Hot List PLUS Training: http://www.netpicks.com/oftbrightbreakthroughs
support, resistance, support and resistance trading, reversals, trend
The document provides an overview of technical analysis and various techniques for determining market trends and identifying trading opportunities, including trend lines, psychological levels, moving averages, Bollinger Bands, MACD, and stochastic. Examples are given for each technique that illustrate how to determine the market bias, establish entry and exit criteria, and design trading strategies around supports and resistances. Technical analysis techniques are presented as educational tools and there is no guarantee they will result in profits.
These are the slides used during the seminar "Introduction to Technical analysis". Will be blogging more about them in detail in further posts. Check out my blog http://trilokhg.blogspot.com for more.
This document provides an introduction to technical analysis tools and techniques. It begins by explaining different types of stock price charts, including line charts, bar charts, and candlestick charts. It then discusses moving averages and how they can be used to identify trends. Support and resistance levels are explained as important trend lines. The document also covers envelopes, Bollinger Bands, and Parabolic SAR as additional technical indicators. It emphasizes that these tools should be used together to analyze trends and identify entry and exit points for trades.
An overview of technical analysis and its common techniques (Candlestick , MACD, Parabolic SAR, RSI, Bolinger Bands etc) - given to brokers and managers of Nepal Derivative Exchange (NDEX) by Mr. Sohan Khatri (Resource person - Management Association of Nepal, Adjunct Faculty - Ace Institute of Management, Kathmandu College of Management)
Would you like to learn secrets of price action trading which is used in every day trading by a 15 years trader? Continue reading on to learn real examples of how price action trading works on Forex, stock futures and gold charts!
This document provides an overview of market trending in forex trading. It discusses the three types of market trends - uptrend, downtrend, and sideways. An uptrend is identified when the price breaks above the high of the previous candlestick, while a downtrend is identified when the price breaks below the low. Sideways trends occur when there is little price movement and candles form dojis. It also describes how to identify a weakening trend through indicators like shadow length, decreasing volume, and stochastic signals. The best entries are at support and resistance levels on smaller time frames once the trend is confirmed on larger time frames.
The document provides an introduction to technical analysis (TA), covering some of its basic concepts and techniques. It discusses TA basics like price charts and trends. It then explains common basic formations like trend lines, channels, and reversal patterns. The document also introduces Japanese candlestick patterns and popular technical indicators like moving averages and the MACD. It emphasizes that TA analyzes past price and volume data to identify patterns that may forecast future price movements.
Stop Trading Support And Resistance The Wrong WayNetpicksTrading
Stop Trading Support And Resistance The Wrong Way
- See more at: http://www.netpicks.com/support-resistance/
Support and resistance trading is a popular technical analysis method of trading. The bad part is that many traders enter trades blindly at these levels without a firm understanding of what they mean.
Learn about trading support and resistance and see if your trading results improve.
- See more at: http://www.netpicks.com/support-resistance/
- Visit our website: http://www.netpicks.com/
- Download the free indicator blueprint: http://www.netpicks.com/blueprint/
- Options Hot List PLUS Training: http://www.netpicks.com/oftbrightbreakthroughs
support, resistance, support and resistance trading, reversals, trend
The document provides an overview of technical analysis and various techniques for determining market trends and identifying trading opportunities, including trend lines, psychological levels, moving averages, Bollinger Bands, MACD, and stochastic. Examples are given for each technique that illustrate how to determine the market bias, establish entry and exit criteria, and design trading strategies around supports and resistances. Technical analysis techniques are presented as educational tools and there is no guarantee they will result in profits.
These are the slides used during the seminar "Introduction to Technical analysis". Will be blogging more about them in detail in further posts. Check out my blog http://trilokhg.blogspot.com for more.
Support resistance trading strategies - a comparisonHimanshu Patil
The document discusses various support and resistance trading strategies, including manually drawing support and resistance lines, automatic support and resistance, pivot points, Fibonacci retracements, new highs/lows, and using risk/reward ratios. It provides guidance on determining the strength of support and resistance, and how to use these concepts for buying and selling decisions. Composite scans are presented for identifying potential high-volume breakouts and breakdowns.
this is breakout trading strategy to use. if you understand how the breakout works.you can gain up to 100pips 200pips.
.
if you understand market trending and break out. you can make money with forex.
.
This document provides definitions and strategies for the Follow The Money (FTM) trading strategy. It discusses analyzing market structure and momentum on different timeframes to identify trends and trading opportunities that are aligned across timeframes. Key concepts explained include order blocks, imbalances, and how institutional traders use techniques like stop hunt candles and order manipulation to provide liquidity and mitigate losses. The document emphasizes the importance of trading with the trend and looking for continuation moves where structures are aligned on multiple timeframes.
Looking for best intraday trading rules? Platinum Trading Systems presents simple, easy & golden rules for Intraday trading. Get This 7 Rules and Earn More Money in Intraday.
Technical analysis is a method of forecasting the direction of prices through studying past market data like price and volume. It assumes that market patterns repeat and prices move in trends. The key tenets of technical analysis are that: 1) Price movement is determined by supply and demand forces, 2) Trends persist but also reverse, 3) Price patterns repeat. Technical analysis uses charts and patterns to identify trends and predict future price behavior, in contrast to fundamental analysis which examines financial statements.
This document provides an overview of high probability trading setups for the currency market. It discusses the top 10 trading rules developed by the authors from years of observing currency price action. These rules are meant to keep traders grounded and out of harm's way. The document then outlines several high probability trading setups and strategies for both trending and counter-trend environments in the currency market.
Price action trading strategy is where investment instruments are bought or sold for short-term period based solely on price movement. Click to know more
By www.ProfitableTradingTips.com
Scalping in Day Trading
Traders who engage in rapid momentum trades are often scalping in day trading. These traders make their profit from the difference between bid and ask prices. Even in a flat market traders can profit from scalping in day trading. In order to successfully make a business out of scalping in day trading the trader needs to pay close attention to the market, always be aware of market fundamentals, and keep abreast of technical analysis. Despite the theoretical possibility of trading in an absolutely flat market the price of a stock constantly moves to some degree throughout the trading day. Thus when scalping in day trading one acts as a mini trend trader as well.
In and Out of Positions in a Hurry
There is a rhythm to scalping in day trading and it is fast. Traders seek to profit from the actions of traders to simply take the bid and ask prices of a stock. This strategy guarantees a profit if the trader acts quickly. It can result in losses if the stock price moves too quickly. As an example, Xyz Corporation has a bid price of $10.10 and ask price of $10.15. If the scalper can buy at the bid price and sell at the ask price he gains $0.05 per share, a small amount but a lot if repeated many times throughout the day. However, the market might move lower before he can complete his trade. Let’s say that the stock moves so that the bid price is now $9.90 and the ask price is $9.95. The trader who purchased for $10.10 now needs to sell at $9.95 if he wants to quickly exit his trade. The other choice is to continue the trade in hopes that the market will turn upward and not fall farther. This later course is anathema to scalping in day trading. When scalping a trader is never trying to outguess the market but simply helping to make the market and make repetitive small profits.
The Nature of Bid and Ask Prices
Bid and ask prices are available on markets across the world. By using this price system traders are able to execute trades immediately, so long as there are enough bid prices to match ask prices. The difference between bid and ask prices is called the spread. Gaining the spread on every trade is the goal when scalping in day trading. The ideal scalping trade would be instantaneous. Buy at the low price and sell at the high. Getting in and out in an instant would seem to be the ideal situation if dealing with absolutely static bid and ask prices. However, the market is never static so traders must look to market direction even when scalping in day trading. A successful scalper also engages in trend following in day trading.
Think of the Spread as a Bonus
Scalping in day trading takes advantage of market movement as well as the bid to ask spread. While trend traders use technical analysis to read market sentiment they attempt to ride out a trade to gain the maximum profit.
Click here for more information on range trading
http://www.netpicks.com/simple-range-trading-strategy/
Here is some information on range trading:
It’s been said that a market only trends 30% of the time.
I can’t quantify that figure but having a range trading strategy to take advantage of the other 70% is good business.
Range trading is not difficult however it does require discipline and a method of determining when a trading range is in play.
For more information on range trading click here:
http://www.netpicks.com/simple-range-trading-strategy/
The best swing trading strategies are the ones that allow you to trade and profit from your beliefs about the market. I have added some of the most popular swing trading indicators as a guide for you to explore. The swing trading indicators listed here focus on trend trading, volatility, and overbought/oversold conditions.
The document provides an overview of order block trading strategies and abbreviations used. It introduces the founders and their SH/SMS-BMS-RTO strategy for analyzing the forex market. A list of abbreviations is also defined, including order block (OB), previous day high (PDH), and shift in market structure (SMS) that are helpful for understanding their approach. Contact information is provided to find the founders on WhatsApp and Telegram.
Profit from trapped traders with 2 simple setupsNetpicksTrading
http://www.netpicks.com/tjgiveaway1 - YOUR FREE TRADING SYSTEM
The concept of trapped traders is a simple one to understand.
While there are two forms of trapped traders, I only want to focus on one.
The trader who is trapped in a losing position.
These traders, by virtue of being on the wrong side of the market, can help propel your trade when they hit the exits.
Issues Of Trapped Traders
The fear and panic by those who enter a trade only to find the market going against them can cause a sudden burst of price movement. This movement in price is caused by these traders exiting their positions and creating order flow in the opposite direction from which they entered the trade.
Whenever you look at the high of a green candle, picture someone hitting their buy button and entering the trade. Flash forward to the next candle being a red momentum candle and that trader who bought the high, is trapped.
To exit, they have to sell.
See more at: http://www.netpicks.com/trapped-traders/
1) The document discusses various bar chart patterns that can indicate reversals in trends, including one-bar, two-bar, and three-bar reversal patterns. Key patterns discussed include the reversal bar, key reversal bar, exhaustion bar, and pinocchio/pin bar.
2) It also covers volatility patterns like the wide range bar and narrow range bar (NR), and describes how the CBOE Volatility Index (VIX) can indicate market sentiment.
3) Common two-bar reversal patterns discussed are the pipe formation, horn pattern, and inside bar. It provides guidelines for identifying and trading each pattern.
Candlestick patterns provide technical traders with visual clues about investor sentiment and can signal potential reversals in trend. Some key reversal patterns include the hammer, hanging man, morning star, and evening star formations. Traders watch for these patterns to form at support/resistance levels or trendlines as potential entry signals. While candlesticks don't provide price targets, confirming patterns with technical analysis helps traders identify high probability trade setups. Proper risk management using stop losses is also important when trading candlestick reversal signals.
smartdisha.wordpress.com/2018/01/18/moving-average/
PLEASE FOLLOW THIS LINK TO REGISTER YOURSELF FOR SMART DISHA COURSE:
https://docs.google.com/forms/d/e/1FAIpQLSdulb2XHYEHfC_Lpag7l0XiXfnYHahSAz39eKSGe7MPIz_zdA/viewform?entry.1844833233&entry.1183341806&entry.1585054779
Pull Back Swing Trading Strategy I The Only Way To Trade Stocks and E-Mini Re...Marketgeekschannel
Visit Us at http://MarketGeeks.com for professional trading education.
The 4 by 4 Retracement or pullback strategy works equally well with stocks and index futures contracts. Both end of day and intra-day time frame work well.
Linda Bradford Raschke - The Taylor Trading Technique.pptKennethAnderson58
This document describes the Taylor Trading Technique and variations on it developed by Linda Raschke. The technique involves trading within a 2-3 day timeframe and focusing on the previous day's high and low as objective price levels. It follows a classic buy-sell-short cycle where the first day is used for going long, the second for exiting longs, and the third for looking to go short. Various indicators like the 2-day Rate of Change and price patterns are also incorporated. The goal is to enter trades on strength and exit at the objective price levels the following day in order to profit from short-term trends and cycles in the market.
This document provides an introduction to trend following strategies for novice traders. It discusses how markets move based on the constant battle between bullish and bearish investors. When one group gains an advantage over the other, it can be difficult for the losing side to reverse the trend. The document advises traders to take an objective, neutral view of the market and look for major trends rather than trying to time every small movement. It emphasizes the importance of identifying clear support and resistance levels on charts in order to get into trades that have the greatest potential to yield large profits.
Support/Resistance is one of the techniques that performs very well if done properly. This webinar will focus on all the strategies based on Support/Resistance and show the attendee some tips on using each one and which one gives the best results and the reasons why. It also introduces a new feature in Investar, namely, Risk/Reward Ratio.
- Pivot Levels
- Fibonacci Retracements
- Gap Up/Gap Down
- New High/New Low
- Support/Resistance (Manually drawn or Automatic like Auto-SR)
- Brief intro to factors identifying strong support/resistance.
- Best settings for Auto-Support/Resistance
- Using the Risk/Reward Ratio
- Using Support/Resistance Zones
How to Use Pivot Points in Day TradingVivek Rattan
This document provides an overview of how to use pivot points, also known as support and resistance (SR) lines, for day trading. Pivot points identify key reference levels that can indicate market bias and future support and resistance. They help traders determine when to enter and exit positions, place stops, and take profits. Pivot points are calculated based on the previous day's high, low, and close prices. Traders can use pivot points for range trading by entering positions near support or resistance levels and placing stops just above or below. They can also use pivot points for breakout trading by entering on initial breakouts or corrections back within the range.
Technical analysis is the study of stock price movements by analyzing historical price data like charts and indicators. It assumes market prices reflect all known information and historical trends will repeat. Common techniques include analyzing price patterns, support/resistance levels, candlestick/line charts, moving averages, and indicators like RSI. Reversal patterns like head and shoulders or double tops signal trend changes, while continuation patterns like flags/triangles suggest pause before trend resumes. Technical analysis has weaknesses like requiring experience, potential bias, and inability to predict new phenomena.
The document provides an overview of technical and statistical analysis concepts such as charts, patterns, momentum, Dow theory, Elliott wave theory, cycle theory, random walk theory, and contrarian theory. It explains tools like moving averages, support and resistance levels, and common chart patterns that technical analysts use to identify trends and time entries into the market. The goal of technical analysis is to forecast future price movements by quantitatively studying historical price data, trading volume, and open interest.
Support resistance trading strategies - a comparisonHimanshu Patil
The document discusses various support and resistance trading strategies, including manually drawing support and resistance lines, automatic support and resistance, pivot points, Fibonacci retracements, new highs/lows, and using risk/reward ratios. It provides guidance on determining the strength of support and resistance, and how to use these concepts for buying and selling decisions. Composite scans are presented for identifying potential high-volume breakouts and breakdowns.
this is breakout trading strategy to use. if you understand how the breakout works.you can gain up to 100pips 200pips.
.
if you understand market trending and break out. you can make money with forex.
.
This document provides definitions and strategies for the Follow The Money (FTM) trading strategy. It discusses analyzing market structure and momentum on different timeframes to identify trends and trading opportunities that are aligned across timeframes. Key concepts explained include order blocks, imbalances, and how institutional traders use techniques like stop hunt candles and order manipulation to provide liquidity and mitigate losses. The document emphasizes the importance of trading with the trend and looking for continuation moves where structures are aligned on multiple timeframes.
Looking for best intraday trading rules? Platinum Trading Systems presents simple, easy & golden rules for Intraday trading. Get This 7 Rules and Earn More Money in Intraday.
Technical analysis is a method of forecasting the direction of prices through studying past market data like price and volume. It assumes that market patterns repeat and prices move in trends. The key tenets of technical analysis are that: 1) Price movement is determined by supply and demand forces, 2) Trends persist but also reverse, 3) Price patterns repeat. Technical analysis uses charts and patterns to identify trends and predict future price behavior, in contrast to fundamental analysis which examines financial statements.
This document provides an overview of high probability trading setups for the currency market. It discusses the top 10 trading rules developed by the authors from years of observing currency price action. These rules are meant to keep traders grounded and out of harm's way. The document then outlines several high probability trading setups and strategies for both trending and counter-trend environments in the currency market.
Price action trading strategy is where investment instruments are bought or sold for short-term period based solely on price movement. Click to know more
By www.ProfitableTradingTips.com
Scalping in Day Trading
Traders who engage in rapid momentum trades are often scalping in day trading. These traders make their profit from the difference between bid and ask prices. Even in a flat market traders can profit from scalping in day trading. In order to successfully make a business out of scalping in day trading the trader needs to pay close attention to the market, always be aware of market fundamentals, and keep abreast of technical analysis. Despite the theoretical possibility of trading in an absolutely flat market the price of a stock constantly moves to some degree throughout the trading day. Thus when scalping in day trading one acts as a mini trend trader as well.
In and Out of Positions in a Hurry
There is a rhythm to scalping in day trading and it is fast. Traders seek to profit from the actions of traders to simply take the bid and ask prices of a stock. This strategy guarantees a profit if the trader acts quickly. It can result in losses if the stock price moves too quickly. As an example, Xyz Corporation has a bid price of $10.10 and ask price of $10.15. If the scalper can buy at the bid price and sell at the ask price he gains $0.05 per share, a small amount but a lot if repeated many times throughout the day. However, the market might move lower before he can complete his trade. Let’s say that the stock moves so that the bid price is now $9.90 and the ask price is $9.95. The trader who purchased for $10.10 now needs to sell at $9.95 if he wants to quickly exit his trade. The other choice is to continue the trade in hopes that the market will turn upward and not fall farther. This later course is anathema to scalping in day trading. When scalping a trader is never trying to outguess the market but simply helping to make the market and make repetitive small profits.
The Nature of Bid and Ask Prices
Bid and ask prices are available on markets across the world. By using this price system traders are able to execute trades immediately, so long as there are enough bid prices to match ask prices. The difference between bid and ask prices is called the spread. Gaining the spread on every trade is the goal when scalping in day trading. The ideal scalping trade would be instantaneous. Buy at the low price and sell at the high. Getting in and out in an instant would seem to be the ideal situation if dealing with absolutely static bid and ask prices. However, the market is never static so traders must look to market direction even when scalping in day trading. A successful scalper also engages in trend following in day trading.
Think of the Spread as a Bonus
Scalping in day trading takes advantage of market movement as well as the bid to ask spread. While trend traders use technical analysis to read market sentiment they attempt to ride out a trade to gain the maximum profit.
Click here for more information on range trading
http://www.netpicks.com/simple-range-trading-strategy/
Here is some information on range trading:
It’s been said that a market only trends 30% of the time.
I can’t quantify that figure but having a range trading strategy to take advantage of the other 70% is good business.
Range trading is not difficult however it does require discipline and a method of determining when a trading range is in play.
For more information on range trading click here:
http://www.netpicks.com/simple-range-trading-strategy/
The best swing trading strategies are the ones that allow you to trade and profit from your beliefs about the market. I have added some of the most popular swing trading indicators as a guide for you to explore. The swing trading indicators listed here focus on trend trading, volatility, and overbought/oversold conditions.
The document provides an overview of order block trading strategies and abbreviations used. It introduces the founders and their SH/SMS-BMS-RTO strategy for analyzing the forex market. A list of abbreviations is also defined, including order block (OB), previous day high (PDH), and shift in market structure (SMS) that are helpful for understanding their approach. Contact information is provided to find the founders on WhatsApp and Telegram.
Profit from trapped traders with 2 simple setupsNetpicksTrading
http://www.netpicks.com/tjgiveaway1 - YOUR FREE TRADING SYSTEM
The concept of trapped traders is a simple one to understand.
While there are two forms of trapped traders, I only want to focus on one.
The trader who is trapped in a losing position.
These traders, by virtue of being on the wrong side of the market, can help propel your trade when they hit the exits.
Issues Of Trapped Traders
The fear and panic by those who enter a trade only to find the market going against them can cause a sudden burst of price movement. This movement in price is caused by these traders exiting their positions and creating order flow in the opposite direction from which they entered the trade.
Whenever you look at the high of a green candle, picture someone hitting their buy button and entering the trade. Flash forward to the next candle being a red momentum candle and that trader who bought the high, is trapped.
To exit, they have to sell.
See more at: http://www.netpicks.com/trapped-traders/
1) The document discusses various bar chart patterns that can indicate reversals in trends, including one-bar, two-bar, and three-bar reversal patterns. Key patterns discussed include the reversal bar, key reversal bar, exhaustion bar, and pinocchio/pin bar.
2) It also covers volatility patterns like the wide range bar and narrow range bar (NR), and describes how the CBOE Volatility Index (VIX) can indicate market sentiment.
3) Common two-bar reversal patterns discussed are the pipe formation, horn pattern, and inside bar. It provides guidelines for identifying and trading each pattern.
Candlestick patterns provide technical traders with visual clues about investor sentiment and can signal potential reversals in trend. Some key reversal patterns include the hammer, hanging man, morning star, and evening star formations. Traders watch for these patterns to form at support/resistance levels or trendlines as potential entry signals. While candlesticks don't provide price targets, confirming patterns with technical analysis helps traders identify high probability trade setups. Proper risk management using stop losses is also important when trading candlestick reversal signals.
smartdisha.wordpress.com/2018/01/18/moving-average/
PLEASE FOLLOW THIS LINK TO REGISTER YOURSELF FOR SMART DISHA COURSE:
https://docs.google.com/forms/d/e/1FAIpQLSdulb2XHYEHfC_Lpag7l0XiXfnYHahSAz39eKSGe7MPIz_zdA/viewform?entry.1844833233&entry.1183341806&entry.1585054779
Pull Back Swing Trading Strategy I The Only Way To Trade Stocks and E-Mini Re...Marketgeekschannel
Visit Us at http://MarketGeeks.com for professional trading education.
The 4 by 4 Retracement or pullback strategy works equally well with stocks and index futures contracts. Both end of day and intra-day time frame work well.
Linda Bradford Raschke - The Taylor Trading Technique.pptKennethAnderson58
This document describes the Taylor Trading Technique and variations on it developed by Linda Raschke. The technique involves trading within a 2-3 day timeframe and focusing on the previous day's high and low as objective price levels. It follows a classic buy-sell-short cycle where the first day is used for going long, the second for exiting longs, and the third for looking to go short. Various indicators like the 2-day Rate of Change and price patterns are also incorporated. The goal is to enter trades on strength and exit at the objective price levels the following day in order to profit from short-term trends and cycles in the market.
This document provides an introduction to trend following strategies for novice traders. It discusses how markets move based on the constant battle between bullish and bearish investors. When one group gains an advantage over the other, it can be difficult for the losing side to reverse the trend. The document advises traders to take an objective, neutral view of the market and look for major trends rather than trying to time every small movement. It emphasizes the importance of identifying clear support and resistance levels on charts in order to get into trades that have the greatest potential to yield large profits.
Support/Resistance is one of the techniques that performs very well if done properly. This webinar will focus on all the strategies based on Support/Resistance and show the attendee some tips on using each one and which one gives the best results and the reasons why. It also introduces a new feature in Investar, namely, Risk/Reward Ratio.
- Pivot Levels
- Fibonacci Retracements
- Gap Up/Gap Down
- New High/New Low
- Support/Resistance (Manually drawn or Automatic like Auto-SR)
- Brief intro to factors identifying strong support/resistance.
- Best settings for Auto-Support/Resistance
- Using the Risk/Reward Ratio
- Using Support/Resistance Zones
How to Use Pivot Points in Day TradingVivek Rattan
This document provides an overview of how to use pivot points, also known as support and resistance (SR) lines, for day trading. Pivot points identify key reference levels that can indicate market bias and future support and resistance. They help traders determine when to enter and exit positions, place stops, and take profits. Pivot points are calculated based on the previous day's high, low, and close prices. Traders can use pivot points for range trading by entering positions near support or resistance levels and placing stops just above or below. They can also use pivot points for breakout trading by entering on initial breakouts or corrections back within the range.
Technical analysis is the study of stock price movements by analyzing historical price data like charts and indicators. It assumes market prices reflect all known information and historical trends will repeat. Common techniques include analyzing price patterns, support/resistance levels, candlestick/line charts, moving averages, and indicators like RSI. Reversal patterns like head and shoulders or double tops signal trend changes, while continuation patterns like flags/triangles suggest pause before trend resumes. Technical analysis has weaknesses like requiring experience, potential bias, and inability to predict new phenomena.
The document provides an overview of technical and statistical analysis concepts such as charts, patterns, momentum, Dow theory, Elliott wave theory, cycle theory, random walk theory, and contrarian theory. It explains tools like moving averages, support and resistance levels, and common chart patterns that technical analysts use to identify trends and time entries into the market. The goal of technical analysis is to forecast future price movements by quantitatively studying historical price data, trading volume, and open interest.
Technical analysis is a method of evaluating investments using historical price patterns and trends. It uses tools like trend lines, support and resistance levels, moving averages, trading volume, chart patterns, candlesticks, and indicators to identify potential opportunities. The key principles of technical analysis are that price action reflects all known information, trends tend to persist until disruptions occur, and historical patterns often repeat. Technical analysts believe studying these tools can help forecast future price movements.
The document discusses technical analysis and its key concepts. It defines technical analysis as identifying trend reversals using indicators to analyze relationships between price, volume, and demand/supply. The assumptions of technical analysis are that the market discounts all information and moves in trends. Charting techniques discussed include Dow theory, identifying primary/secondary trends, and support/resistance levels. Technical indicators examined include moving averages, where crossing the average provides buy/sell signals. Sentiment indicators like volume and odd-lot trading are also summarized.
Security analysis (technical) and portfolio managementHarish Khan
This document provides an overview of technical analysis tools and concepts used in portfolio management. It discusses Dow theory, trends in bull and bear markets, chart patterns like head and shoulders and symmetrical triangles, and the efficient market hypothesis. It also summarizes the phases of portfolio management including security analysis, portfolio analysis models like BCG, portfolio selection using Markowitz theory, and portfolio revision and evaluation. Technical analysis tools and modern portfolio theory principles are used to construct optimal portfolios balancing risk and return.
This document provides an overview of fundamental and technical analysis techniques used to analyze stocks. It discusses macroeconomic, industry, and company analysis as part of fundamental analysis. Key factors are analyzed for the economy, industry classifications, and individual companies. Technical analysis techniques covered include charts, trends, support/resistance levels, moving averages, oscillators, and Dow theory. Mathematical indicators are used to smooth price movements and identify overbought and oversold conditions.
This document discusses technical analysis, which uses patterns in stock prices and volumes to predict future market movements. It outlines various charting techniques used in technical analysis like bar charts, moving averages, and point and figure charts. It also describes technical indicators that analyze market breadth and sentiment, such as the advance-decline line, short interest ratio, and put/call ratio. Technical analysis aims to identify trends but its effectiveness is controversial.
Axis Direct offers a introductory course on Technical Analysis. It will cover the background and basic aspects of technical analysis
For more information visit :
https://simplehai.axisdirect.in/learn/eclasses
Technical analysis is the use of market data such as prices, volume, and indicators to analyze trends and patterns in stock prices. Technicians believe this data reflects investor sentiment and can be used to identify turning points in the market. Tools of technical analysis include charts, moving averages, breadth indicators, and sentiment indicators that are used to generate buy and sell signals. The Dow Theory identifies primary, secondary, and day-to-day price movements and defines bull and bear markets based on penetration of previous highs and lows. While technical analysis remains popular, thorough tests have failed to confirm its value after accounting for all costs.
Technical analysis uses statistical data from market activity, past prices and trading volumes to identify patterns and indicators that can predict a security's future performance. Hundreds of techniques exist, including chart patterns like bar charts, candlestick charts and point and figure charts that consolidate supply and demand forces into a visual representation. Technicians believe prices move in predictable trends and patterns until a change causes the trend to reverse, and chart analysis helps identify support and resistance price levels as well as common patterns like double tops/bottoms and head and shoulders formations that can signal trend reversals.
This document provides an introduction to technical analysis for investors. It outlines several key techniques of technical analysis including price charts, candlestick patterns, trend lines, support and resistance, moving averages, and chart patterns. Price charts visually represent stock price data and can take the form of line charts, bar charts, or candlestick charts. Candlestick patterns provide insight into market sentiment. Trend lines identify uptrends and downtrends while support and resistance levels indicate where buyers and sellers enter the market. Moving averages smooth price data to identify trends. Finally, chart patterns like triangles, flags, double tops, and head and shoulders formations signal potential reversals or continuations in price. Technical analysis tools help gauge the probability of future price
This document provides an introduction and overview of technical analysis. It defines technical analysis as using price movements to make trading decisions. Key concepts discussed include Dow Theory, chart construction, identifying trends through tools like moving averages, support and resistance levels, and trendlines. The advantages of technical analysis are that all market information is reflected in price and it provides a quantitative representation of market psychology. Technical analysis is compared to fundamental analysis.
This presentation is for folks who wants to understand the 101 of stock trading. Most of the information is available online in the mentioned reference websites.
- The document discusses technical analysis, which uses patterns in stock prices and trading volume to predict future stock performance, rather than analyzing companies' financials.
- It outlines various technical analysis techniques like charting patterns, indicators like RSI and Bollinger Bands, and identifying support and resistance levels.
- Technical analysis is believed to be one of the oldest forms of security analysis and is still widely used today, though it also faces challenges from theories like the efficient market hypothesis.
This presentation gives you an overview of technical analysis. Technical Analysis basically suggests us "WHEN" to invest. This presentation will give a brief idea of Dow's Theory and different types of graphs used in share market to demonstrate a specific stock (5 types of graphs).
The document provides an overview of security analysis and different analytical techniques used, including fundamental analysis and technical analysis.
Fundamental analysis involves analyzing the economy, industry, and company to determine a company's intrinsic value. Technical analysis uses historical price and volume data to identify trends and patterns that can predict future price movements. Key techniques include chart analysis and identifying support/resistance levels and patterns like head and shoulders. The efficient market hypothesis suggests stock prices already reflect all available public information and it is difficult to outperform the overall market through analysis alone.
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Technical analysis is a method of evaluating investments using statistical analysis of trading data such as price and volume. The Dow Theory, developed by Charles Dow, states that market trends are confirmed when both industrial and transportation stock averages move in the same direction. Technical analysis uses various charts like line, bar, and candlestick charts as well as indicators to identify patterns like pennants, flags, and head and shoulders formations that indicate trends and potential reversals. Other tools like trendlines, moving averages, and oscillators help analyze the strength and direction of trends. Capital market theories like the Capital Asset Pricing Model, Arbitrage Pricing Theory, utility theory, portfolio theory, and multi-factor models provide frameworks for evaluating relationships between
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1. Understanding the market
Technical Analysis Approach: part I
Xiaoguang Wang
President, Purdue Quantitative Finance Club
PhD Candidate, Department of Statistics
Purdue University
wang913@purdue.edu
2. Outline
• Why Technical Analysis?
• Philosophy of technical analysis
• Fundamental assumptions
• Definitions of trend, support and resistance
• Different Charting styles
• Reversal and Continuation patterns
• Principle of Confirmation and Divergence
• MetaTrader4 introduction
• Conclusion
3. Question: How to trade successfully in
the market?
• Profits significantly out-beat risk-free rate or
the return of market index
• Statistically stable performance in a long run
• The “worst” loss is still affordable
4. “Trading formula”
• Expected profits = (Target price – entry
price)*P{success} – (Entry price – stop
price)*P{failure}
• Decision making:
Determine (Entry price, Target price, Stop
Price) such that the expected profits can be
maximized.
5. The role of Technical Analysis
• Help you make the selection among the three
choices at any fixed time t:
1. Open a position
2. Close a position
3. Do nothing
6. The history of Technical Analysis
• Dow Theory: Charles H. Dow published the first stock
market average on July 3, 1884.
The ABC of Stock Speculation, S.A. Nelson, 1903. (The first
book the term “Dow Theory” was used.)
Dow Theory, Robert Rhea, 1932.
• Elliott Wave Theory:
The wave principle was published in 1938 by Charles J.
Collins, which was based on the original work of Ralph Nelson
Elliott.
• William D. Gann: Geometric angels and percentages. Most
work was published during the 1950s and ’60s.
• For more information:
http://history.technicalanalysis.org.uk/
7. Philosophy of Technical Analysis
• Market action discounts everything.
• Prices move in trends: A trend in motion is
more likely to continue than to reverse. (An
adaptation of Newton’s first law of motion.)
• History repeats itself.
8. Basic foundations behind technical
analysis
• Price discounts everything
• Price movements are not totally random
• The market has Three trends (Dow)
• Major trends have three phase (Dow)
• Volume must confirm the trend
• A trend is assumed to be in effect until it gives
definite signals that it has reversed
• The market is more psychological than logical
9. Doubts and Criticisms
• The doubts and criticisms have a history as long
as that of the theory:
Can the past be used to predict the future?
Signals are always too late?
Analyst Bias: subjective interpretation; art vs.
science
Trader’s Remorse: Not all signals and patterns
work
Always another level: Bullish or Bearish?
10. Description vs. Prediction
• “What” is more important than “why”!
• Technical analysis at least is an effective
description of the market prices. It helps us
know what the market is saying at the
moment.
• It is a popular language used by traders to
describe the market.
11. Definitions
• Trend: An upper trend is a series of
successively higher peaks and troughs; a
downtrend is just the opposite, while
horizontal peaks and troughs would identify a
sideways price trend (trendless).
Remark: It is the direction of those peaks and
troughs that constitutes market trend.
13. Support and resistance
• Support is a level or area on the chart under the
market where buying interest is sufficiently strong to
overcome selling pressure and a decline is halted and
prices turn back up.
• Resistance is a level or area over the market where
selling pressure overcomes buying pressure and a price
advance is turned back.
• Tested support and resistance are more reliable.
• Previous peaks and troughs are potential supports and
resistances. Some other candidates can be those levels
or areas indicated by indicators such as MA, trend
channels, percentages and so on.
16. Remarks on supports and resistance
• Finding supports and resistance plays the key role of
technical analysis. This is the hardest part in developing
a trading strategy based on technical analysis.
• All the indicators and tools are to help you in two
perspectives:
1. evaluate the strength of potential supports and
resistances.
2. evaluate the spot probability of price going up vs.
going down at the moment.
• Good trading opportunities are those levels that satisfy
the 3:1 rule and have a high odds ratio.
17. Charting
• Ways to describe or plot the market prices.
• Different types of charts:
Bar Chart
Candle-stick Chart
Point and Figure (OX chart)
Market profile
Pro-Sticks chart
• Goal: keep the basic trend or shape of historical
prices while omit most prices that not
“important” in technical analysis perspective.
23. Summary for Candle types
• Long white candlesticks indicate that the Bulls controlled the ball (trading) for most of the
game.
• Long black candlesticks indicate that the Bears controlled the ball (trading) for most of the
game.
• Small candlesticks indicate that neither team could move the ball and prices finished about
where they started.
• A long lower shadow indicates that the Bears controlled the ball for part of the game, but lost
control by the end and the Bulls made an impressive comeback.
• A long upper shadow indicates that the Bulls controlled the ball for part of the game, but lost
control by the end and the Bears made an impressive comeback.
• A long upper and lower shadow indicates that the both the Bears and the Bulls had their
moments during the game, but neither could put the other away, resulting in a standoff.
24. Drawbacks of Candle Chart
• Omit all the information except for HLOC within a
time interval (one candle), some of which,
however, might be important, especially the
statistical information of the price magnitude
change (Market Profile), assigned volume
information such as the prices that most volume
concentrate on (Pro-Stick).
• Chart can be further contracted, especially when
price moves in a very narrow range for a long
time (OX Chart).
25. OX Chart
• Focus on the magnitude changes of prices
rather than the changes of prices on time
domain.
26. More on OX Chart
• You can apply similar patterns used in
candlesticks chart to the OX chart
31. Summary for OX Chart
• Filter insignificant price movements and noise
• Focus on important price movements
• Remove the time aspect from the analysis
process
• Make support/resistance levels much easier to
identify
• Provide automatic and subjective trendlines
32. Market Profile
• A chart that displays market data using Time
Price Opportunities (TPOs). A TPO is a price
that the market traded at during a specific
period. The typical market profile chart splits
the trading day into thirty minute segments or
periods. The market data for each period is
displayed on the basis of a normal
distribution.
37. Summary on Market Profile
• Focus on the time-based distributional
information of price changes within a time
interval
• More detailed version of Candle chart
• Still not directly reflect much on the assigned
volume information of the price changes
38. Pro-Stick
• The introduction of ProSticks attempts to
reduce the limitations of Market Profile and
other technical analysis and charting tools
while, at the same time, integrates the
elements of volume and time into traditional
technical analysis and charting.
• ProSticks has two variations: ProSticks-By-
Time and ProSticks-By-Volume
39. ProStick-by-Time & ProStick-by-Volume
• The Modal Point in a ProStick bar represents the most heavily transacted
price for the particular time interval.
• ProSticks-By-Time calculates the Modal Point similar to the way Market
Profile builds its bell-curve distribution. The Modal Point is then simply the
price with the most number of transacted 5-minute intervals for all
transacted prices in the trading interval
• ProSticks-By-Volume calculates the Modal Point simply by taking the most
heavily traded price for the trading day (or other trading intervals). The
Modal Point is thus the price that had the most shares traded for that
particular day.
• The Active Range for both ProSticks-By-Time and ProSticks-By-Volume is
computed by first calculating the mean of the entire distribution. Then the
first standard deviation away from the mean in either direction is added
together to form the Active Range. The Active Range equals approximately
68 percent of the entire distribution
43. Summary for ProStick
• Combine the advantages of both Candlestick
and Market Profile
• Help to more accurately find support and
resistant points
• Can be used to confirm or deny signals
indicated by candlestick theories
• It is more reasonable to take Modal Point as
reference compared to close price or H/L price
when do technical analysis.
44. Price Patterns
• Classification and description of sideways market
movements
• Market price curve = trend_1 + pattern_1 +
trend_2 + pattern_2 +…+ trend_i + pattern_i +….
• Reversal Patterns & Continuation Patterns
• Volume often plays an important role in
determining the reliability of patterns
• Most price patterns also have certain measuring
techniques that help determine the minimum
price objectives.
45. Reversal Patterns
• A prerequisite for any reversal pattern is the existence
of a prior trend
• The first signal of an impending trend reversal is often
the breaking of an important trendlines
• The larger the pattern, the greater the subsequent
move
• Topping patterns are usually shorter in duration and
more volatile than bottoms
• Bottoms usually have smaller price ranges and take
longer to build
• Volume is usually more important on the upside
46. Major reversal patterns
• The Head and Shoulder (H&S)
• Triple tops and bottoms
• Double tops and bottoms
• Spike (V) tops and bottoms
• Rounding pattern
47. Head and Shoulder
Prices should not move across the Neckline again,
otherwise it would be treated as a failed head and
shoulder
50. Triple Tops and Bottoms
• A slight variation of “head and shoulder”
• The volume tends to decline with each
successive peak at the top and should increase
at the breakdown point.
51. Double Tops and Bottoms
• The pattern has two peaks (A and C) at about the same level.
• The pattern is complete when the middle trough at point B is broken on a
closing basis.
• Volume is usually lighter on the second peak C and picks up on the
breakdown D.
• A return move back to the lower line is not unusual.
• The minimum measuring target is the height of the top projected
downward from the breakdown point.
52.
53. Extensions: Divergence
• Sometimes the second or third peak can be
significantly higher than the previous peak,
thus a “double or triple top pattern” fails.
• But this still can be treated as a reversal
pattern as there is obvious evidence of
“divergence” between the price curve and
some indicator such as MACD.
54.
55. Abuse of Double tops and bottoms
• Remark: The neckline must be crossed before
confirming a reversal double tops or bottoms
• The price levels should be high or low “enough”
to be considered as reversal patterns
58. Continuation patterns
• These patterns usually indicate that the
sideways price action on the chart in nothing
more than a pause in the prevailing trend and
the next move will be in the same direction as
the trend that preceded the formation.
• Continuation patterns are usually shorter-
term in duration and are more accurately
classified as near-term or intermediate
patterns.
63. Diamond pattern
• Broadening pattern + Triangle
• Mainly considered as continuation pattern,
but can show up at the bottom or top
• Bullish or Bearish prediction depends on the
breakout direction
• Profit target is the height of the diamond
70. Rectangle
• A flat flag sometimes can be treated as a
rectangle pattern.
• The rectangle pattern usually shows up on
long term chart (daily or monthly chart).
• The volume pattern of rectangle is different
from other continuation patterns since
rectangle usually have wider price swings.
74. Principle of Confirmation
• Confirmation refers to the comparison of all
technical signals and indicators to ensure that
most of those indicators are pointing in the same
direction and are confirming one another.
• Divergence is the opposite of confirmation and
refers to a situation where different delivery
months or related markets or technical indicators
fail to confirm one another. It is one of the best
early warning signals of impending trend
reversals.
75. Confirmation of price trends or
patterns
• Volume and open interest
• Technical signals
• Comparable market index or products
• Fundamental factors
• Other supports or resistances indicated by
some previous (historical) price patterns or
trends.
78. Part II: Preview
• More on indicators
• Real market practice: currency market
• X Trader introduction
• Algorithmic trading
• Comprehensive list of indicators
• Technical analysis based statistical Modeling
• Axiomatic thoughts on technical analysis