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("the Acts").
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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.
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Does not contravene the Acts
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Provides Information only
This workshop/presentation has been prepared for information purposes without consideration of any reader's specific
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and/or recommendations presented. Readers should, before acting on any information contained herein, consider the
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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
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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
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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
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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
…
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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!
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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
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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...
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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
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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
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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.
TA is not a precise science – many people search for the holy grail – that single indicator that is right all of the time --- but there is no such thingBest I can advise is that you focus on price action – the secondary analysis using indicators are all derived from price data and just help make things simpler for ur.
