Professional Documents
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Finance
Beyond the Fundamentals; Technical
Analysis
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Monetary Approach
Chart Analysis
Quantitative Methods
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Old Support
level
New Support
level
Connect two
consecutive highs to
get the upper
channel
A breakout indicates
a new pattern forming
Bullish channels
tend to have
upward breakouts
Ascending triangles
usually have
upward breakouts
The Bump:
Increase in trend
by more than 50%
The neckline connects the two shoulders and indicates lower support
offspring
A pair of
One Pair
(Y)
1 Month
2 Months
One Pair
(M)
Two Pair
(M, Y)
3 Months
Three Pairs
(M, M, Y)
Y = Young, M = Mature
One
Two
Three
Euphorbia
Trillium
Five
Eight
Thirteen
Bloodroot
Black-eyed Susan
Buttercups
(By far the most
common)
Every human has 2 hands with 5 fingers on each. Each finger is made
of 3 segments connected by 2 jointsdont these numbers sound
familiar?
8/5 = 1.6
13/8 = 1.625
21/13 = 1.615
34/21 = 1.619
Now, suppose that we divide each number into the previous number
1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89,
1/1 = 1
1/2 = .5
2/3 = .667
3/5 = .6
5/8 = .625
8/13= .615
13/21 = .619
21/34 = .617
1 .618 1.618
AND
1
1.618
.618
Suppose that
we begin with a
1X1 square
Connect the corners of the squares and you get the golden
spirallook familiar??
Math is everywhere!!
Draw arcs
that
intersect the
trend at
61.8%, 50%,
and 38.2%
of the high
(these will
indicate
future
supports)
Draw rays
that intersect
at 61.8%,
50%, and
38.2%
Elliott Waves
Impulse
Correction
The 5-3 wave cycles actually oscillate around a larger super-cycle The
super-cycle is also a 5-3 wave.
Impulse (1)
Correction (2)
Note that the grand super cycle has two movements, the super cycle
has 8 movements, the cycle has 34Fibonacci numbers!!
RSI 100
1
100
Total "Up" points
Total "down" points
If Up Points = 0, RSI = 0
RSI 100
1
100
Total "Up" points
Total "down" points
7
RS .636
11
100
RSI 100
1 RS
RSI 38.89
Fast Stochastic
Close(X) - Low(X)
FS
*100, X Period Length
High(X) - Low(X)
Signal Y Period Moving Average of FS
Period High: FS = 100
Period Low: FS = 0
Signal < 30 (Oversold)
May
June July
Aug.
Sept.
Oct. Nov.
Dec.
.6
.3
-.1
.1
.2
.6
.2
MA
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
.6
.3
-.1
.1
.2
.6
.2
.2
.45
.1
.15
.4
.4
.2
.27
.10
.07
.3
.33
.33
.3
.17
.2
.275
.3
2
3
4
.2
MACD
MA
MA(10)
MA(N)
Time
- To + :
Buy point
+ To - :
Sell point
- To + :
Buy point
Punch line