Documentos de Académico
Documentos de Profesional
Documentos de Cultura
What to Expect?
Not even T of Technical Analysis (3 Hours is too less a time to expect anything w.r.t Technical Analysis, theres too much out there) Expect just an introduction to what is technical analysis Get yourself convinced by end of the presentation that technical analysis is good enough to buy and sell stocks
What wiki says? Technical analysis is a security analysis discipline for forecasting the future direction of prices through the study of past market data, primarily price and volume.
Candlestics
Line Charts
Bar Charts
Candlesticks
An Example
Is That all?? No
Dow Theory
Market Discounts everything
The 3 Trends -> Primary Trends -> Secondary Trends -> Minor Trends
Continued
Primary Trends : They run for years
Secondary Trends : Few weeks to months 1/3 , 50% , 2/3 retracements Minor Trends : Day to day moments which are of not importance to dow theory.
Continued
The Bull market -> Accumulation -> Public Participation phase -> Excess The Bear Market -> Distribution -> Public Participation phase -> Panic
StockzGateWay.com 2008. All Rights Reserved.
Continued
The 2 Averages must confirm -> Industrial Average -> Rail Average
Continued
A trend be assumed to continue in effect until such time as its reversal has been definitely signaled
Some Examples
Role Reversals
Support becomes Resistance and vise versa
Chart Patterns
Reversal Patterns Ex: Head and Shoulders, Rounding tops and bottoms, Triangles, Rectangles, Double and triple tops and bottoms, diamonds, wedges etc Continuation Patterns Pennants and flags etc
Triangles
Some Examples
Bullish Flag
Falling wedge
Averages
Simple moving average (20 DMA, 50 DMA, 100DMA) Exponential moving average(20 EMA, 50 EMA) Triangular moving average Volume adjusted moving average Weighted moving average
8
9 10
17
18 19
48
51 54
16
17 18
3 DAY EMA
A DAY 1 B PRICE 10 C PRICE * 0.5 D YESTERDAY E * 0.5 E C+D 10.000
2
3 4 5 6 7
11
12 13 14 15 16
5.5
6 6.5 7 7.5 8
5
5.25 5.625 6.062 6.531 7.015
10.500
11.250 12.125 13.062 14.031 15.015
Indicators
Leading Indicators Ex: RSI, CCI, Stochastic, etc Lagging Indicators Ex: MACD, moving averages etc
Bollinger Bands
Shown in 3 bands Middle Band = SMA Upper Band = Middle band + 2 Standard Deviations Lower Band = Middle band 2 Standard Deviations
RSI
Relative Strength Index Usage -> Tops and Bottoms (70 and 30) -> Chart Formations ->Support and Resistance -> Divergance
Calculation
100 - (100 / (1 + (U/D))) U -> Upward Price Change D -> Downward Price Change Ex : 3 day RSI
Continued
A Closing Price 10 11 1 0 B Upward Price Change C Smoothed B D Down word Price Change E Smoothed D
9
13 10 14
0
4 0 4 1.66 1.33 2.66
2
0 3 0 0.66 1.33 1
C
C 1.66 1.33 2.66
E
E 0.66 1.33 1
F
C/F 2.51 1 2.66
G
F+1 3.51 2 3.66
H
100/G 28.5 50 27.3
I = RSI
100 - H 71.5 50 72.7
Some Examples
MACD
Moving Average Convergence and Divergence Calculation 12 EMA 16 EMA Usage -> Crossovers -> Overbought/Oversold -> Divergence
StockzGateWay.com 2008. All Rights Reserved.
Examples
Pivot Points
PP = (H + L + C) / 3 R1 = (2*PP) - L R2 = PP + (H - L) R3 = H + 2*(PP-L) S1 = (2*PP) - H S2 = PP - (H - L) S3 = L - 2*(H - PP)
StockzGateWay.com 2008. All Rights Reserved.
Q&A
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Thank You