WHAT IS TECHNICAL ANALYSIS?

Technical Analysis can be defined as a craftsmanship and exploration of estimating

future costs in light of an examination of the past value. Specialized examination is

not soothsaying at anticipating costs. Technical Analysis examination depends on

dissecting current request supply of items, stocks, indices, futures or any tradable

item.

Technical Analysis includes putting stock data like price, volumes and open interest

on a graph and applying different examples and pointers to it so as to survey the

future value developments. The time span in which specialized examination is

connected may run from intraday (1-minute, 5-minutes, 10-minutes, 15-minutes, 30-

minutes or hourly), day by day, week by week or month to month value information

to numerous years.

There are basically two techniques for examining speculation in the security viz basic

fundamental analysis and technical analysis. We can utilize principal data like

financial and non-financial parts of the organization or specialized data which

overlooks essentials and spotlights on real value developments.

TECHNICAL ANALYSIS BASIS

What makes Technical Analysis a powerful instrument to dissect value conduct is

clarified by taking after hypotheses given by Charles Dow:

 WHAT IS MORE IMPORTANT THAN WHY

 PRICE MOVEMENTS ARE NOT TOTALLY RANDOM

 PRICE DISCOUNTS EVERYTHING

“Each price represents a momentary consensus of value of all market participants –

large commercial interests and small speculators, fundamental researchers,

technicians and gamblers- at the moment of transaction” – Dr Alexander Elder

It is believed that “A technical analyst knows the price of everything, but the value of

nothing”.

The current market price of stock and history of price movement are only two main

things that technical analysts are bothered about.

Given below are the contents of TECHNICAL ANALYSIS module:

 CHAPTER 1: INTRODUCTION TO TECHNICAL ANALYSIS

WHAT IS TECHNICAL ANALYSIS?

 PRICE DISCOUNTS EVERYTHING

 PRICE MOVEMENTS ARE NOT TOTALLY RANDOM

 TECHNICAL ANALYSIS: THE BASIC ASSUMPTION

 STRENGTHS AND WEAKNESS OF TECHNICAL ANALYSIS

CHAPTER 2: CANDLE CHARTS

THE CHARTS

CANDLESTICK ANALYSIS

ONE CANDLE PATTERN

 HAMMER

 HANGING MAN

 SHOOTING STAR AND INVERTED HAMMER

TWO CANDLE PATTERN

 BULLISH ENGULFING

 BEARISH ENGULFING

 PIERCING

 BEARISH HARAMI

 BULLISH HARAMI

THREE CANDLE PATTERN

 EVENING STAR

 MORNING STAR

 DOJI

CHAPTER 3: PATTERN STUDY

WHAT ARE SUPPORT AND RESISTANCE LINES?

 SUPPORT

 RESISTANCE

 WHY DO SUPPORT AND RESISTANCE LINES OCCURS?

 SUPPORT AND RESISTANCE ZONE

 CHANGE OF SUPPORT TO RESISTANCE AND VICE VERSA

 WHY ARE SUPPORT AND RESISTANCE LINES IMPORTANT?

HEAD AND SHOULDERS

 HEAD AND SHOULDERS TOP REVERSAL

 INVERTED HEAD AND SHOULDERS

 HEAD AND SHOULDERS BOTTOM

HEAD AND SHOULDERS BOTTOM

 DOUBLE TOP

 DOUBLE BOTTOM

 ROUNDED TOP AND BOTTOM

GAP THEORY

 COMMON GAPS

 BREAKAWAY GAPS

 RUNAWAY/CONTINUATION GAP

 EXHAUSTION GAP

 ISLAND CLUSTER

CHAPTER 4: MAJOR INDICATORS & OSCILLATORS

WHAT DOES A TECHNICAL INDICATOR OFFER?

 WHY USE INDICATOR?

 TIPS FOR USING INDICATORS

 TYPES OF INDICATORS

 SIMPLE MOVING AVERAGE

 EXPONENTIAL MOVING AVERAGE

 WHICH IS BETTER?

TREND FOLLOWING INDICATOR

 WHEN TO USE?

 MOVING AVERAGE SETTINGS

 USES OF MOVING AVERAGE

 SIGNALS – MOVING AVERAGE PRICE CROSSOVER

 SIGNALS – MULTIPLE MOVING AVERAGES

OSCILLATORS

RELATIVE STRENGTH INDEX

 WHAT IS MOMENTUM?

 APPLICATIONS OF RSI

 OVERBOUGHT AND OVERSOLD

 DIVERGENCE

 STOCHASTIC

 WILLIAM %R

 REAL LIFE PROBLEMS IN USE OF RSI

 ADVANCED CONCEPTS

MOVING AVERAGE CONVERGENCE/DIVERGENCE(MACD)

 WHAT IS THE MACD AND HOW IS IT CALCULATED

 MACD BENEFITS

 USES OF MACD

 MONEY FLOW INDEX

 BOLLINGER BANDS

CHAPTER 5: TRADING STRATEGIES

DAY TRADING

ADVANTAGES OF DAY TRADING

RISKS ASSOCIATED WITH DAY TRADING

STRATEGIES

 STRATEGIES FOR DAY TRADING

 MOMENTUM TRADING STRATEGIES

CHAPTER 6: DOW THEORY AND ELLIOTT WAVE THEORY

INTRODUCTION

PRINCIPLES OF DOW THEORY

SIGNFICANCE OF DOW THEORY

PROBLEMS WITH DOW THEORY

ELLIOT WAVE

 INTRODUCTION

 FUNDAMENTAL CONCEPT

CHAPTER 7: TRADING PSYCHOLOGY AND RISK MANAGEMENT

INTRODUCTION

RISK MANAGEMENT

COMPONENTS OF RISK MANAGEMENT

 STOP LOSS

 ANALYZE REWARD RISK RATIO

 TRAIL STOP LOSS

 BOOKING PROfiT

 USES OF STOP LOSS

 QUALITIES OF SUCCESSFUL TRADERS

 GOLDEN RULES OF TRADERS

 DO’S AND DON’TS IN TRADING

RULES TO STOP LOSING MONEY

CHOOSING THE RIGHT MARKET TO TRADE

IMPORTANCE OF DISCIPLINE IN TRADING

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