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Fundamental or
Technical Analysis?
Suppl
y
Price
Deman
d
Quant
ity
Theoretical Foundation
View Points
11,000
10,000
Level
9,000
Secondary
trends,
8,000 temporary
departures
Corrections
, reversions
7,000
to the
01/01 04/01 07/01 10/01 primary
01/02 04/02 07/02 10/02 01/03 04/03 07/03 10/03
direction Date
Chart Type
Candlesticks Bars
● Fourth level
● Fifth level
Neutral Patterns
Neutral Patterns
Reversal Patterns
Reversal Patterns
Reversal Patterns
Bullish Patterns
Bullish Patterns
Bullish Patterns
Bearish Patterns
Bearish Patterns
Bearish Patterns
Bearish Patterns
Reversal days
The two-day reversal
Point and Figure Charts, I.
Further
Technical
ReferenceInvestors for long term investors by W Clay Allen
Basic Technical Tools
Trend Lines
Short term
Medium trend
Long term
Moving Averages
Price Patterns
Indicators
Cycles
Trend Lines and Channels
● Fourth level
● Fifth level
Three Stages of a Trend
Distributi
on
Excess
Despair
Accumulati
on
Properties of Trend Line
The greater the number of touches the more important the trend
line becomes.
The angle of Trendline
Extension of Trend line.
Trendline with Chart patterns
Spacing of the two points
Number of Touches
Extension of Trendline
Incorrect Angle
Trendline with Chart Patterns
Spacing between 2 points
Support & Resistance
RESISTANCE-1=2*PIVOT POINT-LOW
SUPPORT-1=2*PIVOT POINT-HIGH
RESISTANCE-2=PIVOT POINT+(HIGH-LOW)
SUPPORT-2=PIVOT POINT-(HIGH-LOW)
Price Patterns
Reversal pattern
Bullish reversal
Bearish reversal
Continuation pattern
Diamonds
V formation (Spikes)
5 Major Chart Patterns
Wedge &
triangles
Head &
shoulders W
Cup &
Rounded handle
bottom
5151
5 Major Chart patterns (either way up)
5252
Head and shoulders
● Fourth level
● Fifth level
Head and Shoulders
5555
Rounding top and Bottom
5858
Cup and Handle !!!
6060
Triangles
Descending Triangle
Tar
get
lin e
6464
Broadening Formations
Flags
Rectangles
Pennants
Island
Gap
Common Least important
BreakawayHeavy volume
Runaway Heavy volume
Exhaustion an end of a trend
Flags
Price ($) 16 17 17 10 17 18 17 17 17
The most important thing to understand about RSI is that a level above 70
indicates a stock is overbought, and a level below 30 indicates that it is
oversold (it can range from 0 to 100).
Also, realize that stocks can remain overbought or oversold for long periods of
time, so RSI alone isn’t always a great timing tool.
RSI Example Chart
Stochastic
Advance analysis
On balance volume
Moving average envelop
Bollinger band
Relative strength index
Stochastic
Oscillator
ROC (Rate of Change oscillator)
Moving average oscillator ( MACD)
And many
On Balance Volume
On Balance Volume was developed by Joseph Granville, one of the most famous
technicians of the 1960’s and 1970’s.
To use OBV, you generally look for OBV to show a change in trend (a
divergence from the price trend).
If the stock is in an uptrend, but OBV turns down, that is a signal that the price
trend may soon reverse.
OBV Example Chart
● Fourth level
Divergence, OBV failed
● Fifth level
OBV confirms
trend change
but doesn’t lead
MACD
● Fourth level
● Fifth level
Elliot Wave Principle (1)
Fibonacci numbers are a series where each succeeding number is the sum of the two
preceding numbers.
The first two Fibonacci numbers are defined to be 1, and then the series continues as
follows: 1, 1, 2, 3, 5, 8, 13, 21…
As the numbers get larger, the ratio of the numbers approaches the Golden Mean:
1.618:1.
This ratio is found extensively in nature, and has been used in architecture since the
ancient Greeks (who believed that a rectangle whose sides had the ratio of 1.618:1 was
the most aesthetically pleasing).
Technical analysts use this ratio and its inverse, 0.618, extensively to provide
projections of price moves.
Too Many Others To List
Nseindia
Investopedia
Stockcharts
Smartinvesor
Stockta
Tradingcoach
Daytrading
Wilkipedia
Chartsmart
Deepinsight
Ft
Litwick (for candle stick analysis)
Traders
and many more