3. Bar Charts (Open, High, Low, Close)
How To Draw a Trend Line
Moving Averages (5O MA & 200 MA)
Moving Average Crossovers
How To Determine the Trend
How To Determine the Counter Trend
Support & Resistance (Major and Minor)
4.
5. An open-high-low-close chart (also OHLC chart,
or simply bar chart) is a type of chart typically
used to illustrate movements in the price of a
financial instrument over time. Each vertical line
on the chart shows the price range (the highest and
lowest prices) over one unit of time, e.g. one day or
one hour.
Tick Marks project from each side of the line
indicating the opening price (e.g. for a daily bar
chart this would be the starting price for that day)
on the left, and the closing price for that time
period on the right. The bars may be shown in
different hues depending on whether prices rose or
fell in that period.
6.
7.
8. A trend line is formed when you can draw a
diagonal line between two or more price pivot
points. They are commonly used to judge entry
and exit investment timing when trading.
It can also be referred to as a dutch line as it
was first used in Holland
9.
10.
11. Given a series of numbers and a fixed subset size, the
moving average can be obtained by first taking the
average of the first subset.
The fixed subset size is then shifted forward, creating a
new subset of numbers, which is averaged.
This process is repeated over the entire data series. The
plot line connecting all the (fixed) averages is the
moving average.
Thus, a moving average is not a single number, but it is
a set of numbers, each of which is the average of the
corresponding subset of a larger set of data points.
A moving average may also use unequal weights for
each data value in the subset to emphasize particular
values in the subset.
12.
13.
14. In statistics of time series, a simple moving average (SMA)
crossover results from plotting two moving averages each
based on a different period.
The moving average formed by the shorter of the two
periods is called the "fast" moving average, and the moving
average formed by the longer period is the "slow" moving
average.
As changes in price occur over time, the "fast" moving
average reflects these changes by moving upward or
downward with the price quicker than does the "Slow"
moving average.
As a result these moving averages crossover each other.
This crossover can be used to signal a change in trend and
can be used to trigger a trade.
15.
16.
17. When establishing trend lines it is important to
choose a chart based on a price interval period
that aligns with your trading strategy.
Short term traders tend to use charts based on
interval periods, such as 1 minute.
Longer term traders using price charts based
on hourly, daily, weekly and monthly interval
periods.
18.
19.
20. A support level is a price level where the price tends to find
support as it is going down.
This means the price is more likely to "bounce" off this level
rather than break through it.
However, once the price has passed this level, by an amount
exceeding some noise, it is likely to continue dropping until
it finds another support level.
A resistance level is the opposite of a support level. It is
where the price tends to find resistance as it is going up.
This means the price is more likely to "bounce" off this level
rather than break through it.
However, once the price has passed this level, by an amount
exceeding some noise, it is likely that it will continue rising
until it finds another resistance level.
