Its all about price..

• Technical analysis is the study of past market data to

forecast of future price movement
• Technical analysis is the study of historical price
action in order to determine probabilities of future
movements
• Technical analysis can be used on any security with
historical trading data. This includes stocks,
futures, commodities, fixed-income, currencies, and
other securities.
• Charts are graphical presentations of price
over a time
• Charts shows historical data based on a
combination of price, volume as well as time
intervals.
• There are three main types of technical charts,
Candlestick
Bar
line charts
• candlestick charts are visually more appealing
• There are four specific points Open High Low
Close
• The portion between open and close is called
Body of the candle.
• One of the basic tools of technical analysis is the
bar chart.
• Bar charts also called as OHLC (Open high low
close) charts
• Bar charts help to discover pattern easily as it
takes in consideration on OHLC
• Line charts are the most basic form of charts
• Line chart formed after connecting the closing
prices
• Line charts is clear as well as a simple way of
getting a general idea of the price movement’s
The Market Discounts Everything
• The Market Is Comprised of Three
Trends,
Primary or Major Trend

Secondary Trend

Minor Trend
• Primary Trends Have Three Phases (Bull Market)
-
Accumulation Phase
Public Participation or Big move
Excess or Phenomenal Advance
In Bear Market -
Distribution Phase
Public participation Phase
Panic or Despair Phase
• Volume Must Confirm the Trend
• Trends Persist Until a Clear Reversal Occurs
• What is Support - Support is a price level where a
downtrend can be expected to pause due to a
concentration of demand or buying interest.
• A support level exists at a price where considerable
demand for the stock is expected to prevent a further
fall in the price level.
• In the support level, the fall in the price may be
halted for the time being or it may result even in
price reversal.
• What is Resistance – its an indication when
asset has reached a price level that market
participants are unwilling to continue
buying, which causes the price to stop rising.
• More and more sellers will be active the closer
the price gets to the resistance level
• Resistance is a price level at which upward
movement may be restrained
• Trend line is one of the chart patterns
• It is constructed by joining two or more price
points with a straight line.
• The purpose of a trend line is to identify the
mother trend of the price movements
• Trend lines are used to predict support and
resistance
• The trend line is usually extended forward to
identify sloped areas of support and resistance.
• A Channel is a set of parallel trend lines defined
by the highs and lows
• Price will move up and down between the
support and resistance lines of the price channel.
• Channel lines are used as entry and exit
signals because they play the role of a support and
resistance.
• Types of Channels – Ascending , Descending and
Horizontal
• Trends formation is an essential element when it
comes to Technical analysis. Without knowing the
underlying trend, it would be difficult to predict
future prices.
• Trends are formed across all time frames, monthly,
weekly, daily and also to intraday time frames as
well.
• A market trend is a tendency of financial markets
to move in a particular direction over time
• Trends are made up of peaks and troughs
• All trends fall under one of the following three categories
Uptrend
downtrend
sideways trend
• Uptrend - An uptrend is defined as a series of price
movements which form higher highs and higher lows
• Downtrend - In downtrend prices make lower lows
compared to the previous lows while also making lower
highs
• Sideways Trend – In sideways trend no Fresh highs or
fresh low are being established
 Magnetic Trading
- Prices never move in a straight line, it always move in
waves
- Magnetic Trading are often referred to as price
retracements or price correction
- Magnetic Trading is typical price movement after
giving a breakout of an important level of support or
resistance
- The pros of magnetic trading in uptrends are that
you’re buying low and selling high and vice a versa in
downtrend
• Doji is single candle
pattern which formed
when both open and
closing price is same.
• It represents indecision
in the markets.
• Indecision reigns, as
neither the buyers and
sellers are in control.
• The Hammer candle formed when the
open, high, and close are roughly the
same price. Also, there is a long lower
shadow, twice the length as the real
body.
• There should be no upper shadow or
a very small upper shadow.
• The color of the body does not matter
• A Hammer candlestick pattern is
considered as a bullish reversal
pattern when formed during a
downtrend.
• One can enter once the high gets break
with keeping stop out level below the
low of the candle
• The hanging man is a single
candle pattern which occurs
in uptrend.
• Don’t confuse the Hammer
with the Hanging Man.
• A Hanging Man looks
identical but only forms at
the end of an uptrend, while
the Hammer forms after a
downtrend.
• One can enter once the low gets
break with keeping stop out
level above the high of the
candle
• Bullish Engulfing is Two candle
pattern
• The Bullish Engulfing
Candlestick Pattern is a bullish
reversal pattern, usually
occurring at the bottom of a
downtrend
• Formation consist of bearish
candle is encompassed by the
body of a consequent bullish
candle.
• Also white candle should open
with gap down
• One can enter once the high of
the green candle gets break with
keeping stop out level below the
low of the green candle
• Bullish Engulfing is Two candle
pattern
• The Bearish Engulfing
candlestick pattern is considered
to be a bearish reversal pattern
and occurs after a significant
uptrend.
• Formation consist of bullish
candle is encompassed by the
body of a consequent bearish
candle.
• Also red candle should open
with gap up
• One can enter once the low of
the red candle gets break with
keeping stop out level above the
high of the red candle
• Bullish Piercing is two candle
Reversal pattern
• Formation consist of a black
candlestick followed by a white
candle
• The white candle should open with
gap down
• white candle should close above
the median of the black candle
• The size of the piercing
candlesticks is large in relation to
the previous candles
• One can enter once the high of the
green candle gets break with
keeping stop out level below the
low of the green candle
• Bearish Piercing is two candle Reversal
pattern
• Formation consist of a Green
candlestick followed by a Red candle
• The Red candle should open with gap
up
• Red candle should close below the
median of the green candle
• The size of the piercing candlesticks is
large in relation to the previous
candles
• One can enter once the low of the red
candle gets break with keeping stop out
level above the high of the red candle
• Bullish Harami is two candle Reversal
pattern
• Bullish Harami is Bullish reversal
Pattern by nature
• Formation consists of a bearish candle
with a large body, followed by a bullish
candle with a small body enclosed
within the body of the previous
candle
• A small Green candle should open with
a strong gap up
• One can enter once the high of the
green candle gets break with keeping
stop out level below the low of the red
candle
• Bearish Harami is two candle Reversal
pattern
• Bearish Harami is Bearish reversal
Pattern by nature
• Formation consists of a bullish candle
with a large body, followed by a bearish
candle with a small body enclosed
within the body of the previous
candle
• A small red candle should open with a
strong gap down
• One can enter once the low of the red
candle gets break with keeping stop out
level above the high of the green candle
• Morning star is Three candle reversal
pattern
• It warns of weakness in a downtrend
that could potentially lead to a trend
reversal.
• Formation consist of a long red candle
extending the current downtrend, a small
middle candle with gap down opening
and long green candle that open with a
gap up and should close above the
median of the first candle
• Morning star should form after
consistent downtrend
• One can enter once the high of the green
candle gets break with keeping stop out
level below the low of the center candle
•
• Evening star is Three candle
reversal pattern
• It warns of strength in a uptrend that
could potentially lead to a trend
reversal.
• Formation consist of a long green
candle extending the current
uptrend, a small middle candle with
gap up opening and long red
candle that open with a gap up and
should close below the median of
the first candle
• Evening star should form after
consistent uptrend
• One can enter once the low of the red
candle gets break with keeping stop
out level above the high of the center
candle
 THREE WHITE SOLDIER

• Three white soldiers are trend reversal

patterns
• The Three White Soldiers usually
indicates a weakness in an established
down trend and the potential
emergence of an uptrend
• Each of the three candlesticks should
close on or near the high price for the
period and each candlestick should
make steady advances in price
• Each candlestick should not have long
upper shadows or wicks and should
preferably open within the real body of
the preceding candlestick in the pattern
THREE WHITE SOLDIER
 THREE BLACK CROWS
• Three black crows are trend
reversal patterns
• The Three black crows usually
indicates a weakness in an
established up trend and the
potential emergence of an
downtrend
• Each candlestick should be
relatively long bearish candlesticks
with each candlestick closing at or
near the low price for the period.
• Each successive candlestick should
mark a steady decline in price and
should not have long lower
shadows or wicks
THREE BLACK CROWS
 VOLUME ANALYSIS
WHY VOLUME ANALYSIS IS IMP -
-It can develop an edge to your analysis.
-It will help you to find out where larger
players are active.
-It shows the strength of the trend
-Reversal in volume can lead in trend
reversal.
- To confirm the breakouts
• Volume is easily visible on the charts
• If the volume is above 20 MA its consider to be a good
volume
• When prices are rising with increasing volume which
suggest the trend is getting stronger
• When prices reaches peak with consecutive low
volumes need to be cautious its called exhaustion
move
• Breakout volume should be lucrative
• Volume should ideally be larger when the price moves
in the trending direction & lower when moving
against the trend which called pullback
• Chart patterns are simply price formations represented in a
graphical way
• In technical analysis, chart patterns are used to find trends in
the movement of an asset’s price.
• Chart patterns need to be analyzed in the context of the trend,
determining the dominant trend is paramount because only then
we can use chart patterns to know whether the current trend is
more likely to continue or reverse.
• The basis of chart patterns is market psychology because these
price formations reflect the buying and selling pressures in a
visual format.
• There are two basic types of patterns: continuation and
reversal.
• Continuation patterns identify opportunities for traders
to continue with the trend
• continuation patterns include –
Triangle pattern
Flag pattern
Pennant pattern
• Reversal Patterns are used to look for scenarios to trade
the reversal of a trend.
• “The trend is your friend until it bends.” is another
phrase for those looking for a reversal in a trend
• Reversal Patterns Includes –
Double Tops & Bottoms
Head and Shoulders
Inverted Head and Shoulder
• Triangle Patterns –
• triangle pattern is a consolidation pattern that occurs mid-
trend and usually signals a continuation of the existing trend
• The triangle chart pattern is formed by drawing two
converging trend lines as price temporarily moves in a
sideways direction
• Traders need to focus more on breakouts to the upside during
uptrends and breakouts to the downside during downtrends
• There are three types of triangle chart formations:
Symmetrical triangle
Ascending triangle
Descending triangle.
• A symmetrical triangle is a chart formation where the
slope of the price’s highs and the slope of the price’s lows
converge together to a point where it looks like a triangle.
• The difference between the symmetrical and the other
triangle patterns is that the symmetrical triangle is a
neutral pattern and does not lean in any direction
• Entry can be taken when we see a breakout from the
triangle
• Targets can be calculated as the difference between the
range and stop out level will be immediate swing low.
• The ascending triangle pattern is similar to the
symmetrical triangle except that the upper trend line is flat
and the lower trend line is rising
• Ascending triangle pattern is usually a bullish pattern
formed during a prolonged uptrend
• In ascending triangle buyers are starting to gain strength
because they are making higher lows.
• After breakout of horizontal resistance, the initial profit
target for the trade should be set at a height equal to
the size of the triangle
• Descending triangle pattern is just like the opposite of an
ascending triangle pattern.
• The descending triangle pattern is considered as bearish
continuation patterns and spotted in prolonged
downtrends
• In descending triangle chart patterns, there is a string of
lower highs which forms the upper line. The lower line is
a support level in which the price cannot seem to break
• Once the price has broken below the lower horizontal
support, the initial profit target for the trade should be set
at a height equal to the size of the triangle
• A flag pattern is a continuation chart pattern
• The first component of the Flag pattern is the
Flag Pole. It represents a trend impulse on the
chart
• A brief consolidation will follow and this
consolidation takes on the appearance of a
Flag.
• Bullish flag is
continuation pattern by
nature
• Pattern consist of a Flag
Pole and Flag as shown in
image
• Bullish flags are very
frequent pattern which
form on charts
• Targets for pattern can be
derived from height of the
pole
• Stop out level can be
placed at immediate low
• Bearish flag is
continuation pattern by
nature
• Pattern consist of a Flag
Pole and Flag as shown in
image
• Again Bearish flags are
frequent pattern which
form on charts
• Targets for pattern can
be derived from height of
the pole
• Stop out level can be
placed at immediate high
• Pennants also act as a
continuation patterns

• A Pennant is basically a
variant of a Flag where
the area of consolidation
has converging trend
lines, similar to a
Triangle.
 Cup & Handle Pattern
• A Cup and Handle pattern is a bullish
continuation pattern
• The cup part of the pattern is where the
price gradually changes its direction from
bearish to bullish
• The handle part is where the price pullback
slightly before roars higher and continues
the mother trend
• Volume should decrease as prices move
down & remain lower than average in the
base of the bowl, it should then increase
when the stock starts to make its move
higher
• Target determined by calculating a
distance between the bottom & the
pattern breakout level.
• A double top is a trend reversal pattern that happens at
the end of bull market.
• A Double Top is a chart pattern where the prices made a
high twice but fails to break out higher.
• A double top is simply a retest of a resistance line
• A pattern look like “M”
• The pullback between the two highs should be moderate
and that minor support is called Neckline
• The pattern gets confirmed once the price breaches the
Neckline
• Target can be calculated as second peak minus
neckline and stop out level is high of the second peak
• Double Bottom is bullish reversal pattern by nature
usually occurs at the end of the bear market
• A Double Bottom is a chart pattern where the price holds a
low two times and fails to break down lower during the
second attempt, and instead continues higher.
• It look like “W”
• Double bottom formed in downtrend and reverse it to
uptrend as price breaks through strong resistance line
• Target can be calculated as neckline minus second
bottom and stop out level is below low of second low
• Head &Shoulder is bearish reversal pattern by nature
• Formation consist of the left shoulder, the head, the right
shoulder, and the neckline
• The H&S pattern has the shape of a head and two
shoulders, as the name suggests
• The line that connects the lows, often called the
“neckline”, the pattern is confirmed once the price
breaches the neckline
• Targets can be calculated by deducting value of head
and neckline
• Stop out level in H&S is always right shoulder
• Inverted head and shoulder pattern is a bullish
reversal pattern by nature
• Inverse H&S pattern is usually formed in
declining market or after strong decline
• Ideally, the two shoulders would be equal in
height and width
• Traders looks to get in (Long) once neckline
gets break decisively
• Technical indicators are based on
mathematical equations that produce a value
that is then plotted on your chart. Eg. Moving
Average
• A technical indicator offers a different
perspective from which to analyze the strength
and direction of the underlying price action.
• There are two categories of technical
indicators:
Leading indicators give trade signals
where a trend is about to start . For example –
RSI
Lagging indicators follow the price
action. – Moving Average
• There are two basic types of technical
indicators:
Overlays
Oscillators
• Overlay - Technical indicators that use the
same scale as prices are plotted over the top of
the prices on a stock chart. Eg- Moving
average
• Oscillators - Technical indicators that oscillate
between a local minimum and maximum are
plotted above or below a price chart. Eg- RSI
• RSI is one of the most popular oscillator
• A big component of its formula is the
ratio between the average gain and
average loss over the last 14 periods
• The RSI is bound between 0 – 100 and is
considered overbought above 70 and
oversold when below 30.
• Readings over 50 indicate price
movement that is generally rising
• Readings below 50 indicate price
movement that is generally falling

• When RSI moves in the OPPOSITE

direction of the price its called
Divergence.
• Moving averages are the most basic trending
indicator.
• Moving averages show you what direction a
stock is going and where potential levels of
support and resistance may be
• Moving averages are constructed by finding the
average closing price of a stock at any given
time and then plotting these points on a price
chart
• The indicator is described as “moving” because the
introduction of new figures will replace old data
points and ‘move’ the line on the chart
• Moving average are consider as trend following
indicator, Its purpose is to detect the start of a trend,
follow its progress, as well as to indicate its reversal if
it occurs.
• There are two types of Moving averages
Simple Moving Average SMA
Exponential Moving Average EMA
• Simple moving average is calculation of mean price
over a given time period. For example 20 SMA will
be calculated by taking last 20 days value and divide
the result by 20
• An Exponential Moving Average EMA, gives more
importance to recent prices to make the data more
responsive than the SMA
• ADX help to measure the overall strength of a trend
• ADX is lagging indicator; that is, a trend must have
established itself before the ADX will generate a
signal that a trend is underway
• ADX will range between 0 and100, ADX readings
below 20 indicate trend weakness and readings
above 40 indicate trend strength. An extremely
strong trend is indicated by readings above 50
• When ADX is getting down from high it may be
suggest trend is getting weak
• When the +DMI is above the -DMI, prices are moving
up, and ADX measures the strength of the uptrend.
When the -DMI is above the +DMI, prices are moving
down, and ADX measures the strength of the
downtrend.
Thank You..