Should I take a long position Should I take a short position What is going to be the price tomorrow next week or next year Introduction Technical Analysis Technical analysis involves a study of market generated data like prices and volumes to determine the future direction of price mov ID: 1029052
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2. Analysis of statistics generated by market activity such as past price and volume to come up with reasonable outcome in future using charts as a primary tool.Should I take a long position? Should I take a short position? What is going to be the price tomorrow, next week or next year? Introduction
3. Technical Analysis Technical analysis involves a study of market generated data like prices and volumes to determine the future direction of price movement.
4. Fundamental AnalysisTechnical Analysis “WHAT TO BUY” “WHEN TO BUY” Is a pure science form, involves preset parameters for investment decision support system Is a medley of science and art. No algebraic/empirical formulae Involves study of balance sheet and profit/loss account. Involves study of price charts and oscillators derived thereon Signals generated by corporate actions. Signals generated by market actions on prices.
5. The market discounts everythingPrices move in trendsHistory tends to repeat itselfAssumptions
6. Types of ChartsThere are mainly four types of charts Line Charts Bar Charts MOVING AVERAGES Point and Figure Charts
7. Line chartType of Charts
8. Bar ChartType of Charts
9. Volume Bar ChartType of Charts
10. Candlestick ChartType of Charts
11. Candlestick Chart
12. Chart Patterns Head and Shoulders Pattern Inverse Head and Shoulders Pattern Triangle Pattern Flags Pattern Double Top Pattern Double Bottom Formation
13. Head and Shoulder
14. Inverse Head and Shoulder
15. Triangle Pattern
16. Descending Triangle
17. Flag Pattern
18. Double Top
19. Double Bottom
20. The meaning of trend in finance isn't all that different from the general definition of the term - a trend is really nothing more than the general direction. A trend represents a consistent change in prices (i.e. a change in investor’s expectations)A trendline is a simple charting technique that adds a line to a chart to represent the trend in the market or a stock.Trends
21. Uptrends Types of Trend
22. DowntrendTypes of Trend
23. Sideways TrendTypes of Trend
24. Support and ResistanceSupport level is a price level where the price tends to find support as it is going down
25. Support and ResistanceResistance Level is a price level where the price tends to find resistance as it is going up
26. Importance of Support and ResistanceSupport and resistance analysis is an important part of trends because it can be used to make trading decisions and identify when a trend is reversing
27. Aware: Support and Resistance levelsSupport and Resistance levels are highly volatileTraders should not buy and sell directly at these points as there may be breakout also
28. BreakoutThe penetration of support and resistance level is called breakout
29. Trader’s RemorseReturning to the level of support or resistance after a breakout is called trader’s remorse.
30. Trader’s Remorse
31. Resistance <-> Support