Technical analysis is the forecasting of future security prices based on past market data like price and volume. Key principles are that all information is reflected in prices, prices trend upward, downward, or sideways, and history tends to repeat. Charts like line, bar, and candlestick are used to identify trends, support and resistance levels, and common patterns like double tops/bottoms, head and shoulders, triangles, and channels. Technical analysis seeks to identify opportunities within these patterns and trends.
2. The Crowd May Be Wrong, but They re Still
the Crowd
Flexice Tuan - flexicetuan@gmail.com
3. Definition
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.
(wikipedia)
Flexice Tuan - flexicetuan@gmail.com
4. Principles
Market action discounts everything
All information is already reflected by prices.
Prices move in trends
Markets trend up, down, or sideways (flat)
History tends to repeat itself
Investors collectively repeat the behavior of the
investors that preceded them
Flexice Tuan - flexicetuan@gmail.com
8. Uptrend
Uptrend as a time when successive rallies in a
security price close at levels higher than those
achieved in previous rallies and when lows
occur at levels higher than previous lows.
Flexice Tuan - flexicetuan@gmail.com
18. Sideways Trend
Time on a chart where prices lay flat or move
within a well - defined trading range. (or we
call that range bounce)
Can profit from the
clear lines of support
and resistance, which
allows them to manage
their risk.
Flexice Tuan - flexicetuan@gmail.com
19. What is support & resistance ???
Support is the level at which demand for the stock is
strong enough to keep the stock from dropping any
further
Resistance is the price level at which the selling pressure
is strong enough to prevent the stock from rising further
Flexice Tuan - flexicetuan@gmail.com