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SCIENTIFIC RESEARCH TECHNICAL ANALYSIS!

ESPEN GRØNSTAD CEO – INVESTTECH

WWW.INVESTTEH.COM

Copyright © 2013-11-20

• Norwegian company established 1997

• Based on scientific research

• Solid documented results

• Independent and objective analyses

• Subscriptions: INVESTOR

Investtech AS

Stock analysis

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• Fundamental analyis:

Security!

• Technical analysis:

Timing!

Depression

Skepticism

Optimism

Greed

Denial

Pessimism

Fear

Depression

Greed

Market psychology

2006 2007 2008

“It's not whether you're right or wrong that's

important, but how much money you make

when you're right, and how much you lose

when you're wrong”

- George Soros . 5

Mindset

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Technology

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Mindset

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Trends

Rising trends

Neutral trends

Falling trends

Trends

1-6 quarters 6 years Long term

1-6 months 8 months Medium term

1-6 weeks 5 months Short term

Investment horizon Chart Time horizon

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Signal from Trends

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Signal from Trends

Average price development five days

before trend signal and one year after

trend signal for Norwegian stocks in the period 1996-2009.

20,0%

12,3% Index

5,2%

Buy signal

Sell signal

Trends – help

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Support and Resistance

Support

Resistance

Resistance

Support

Support and Resistance

Support and Resistance Formations

Rectangle

Double top/bottom

Head and shoulders

67%

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Top formation

Oslo Børs 14. January 2008

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Bottom formations

OMX Stockholm 30 - 30 April 2009

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The theory says that the price will reach the objective within L days.

• How often does this happen?

• Can this be used in a trading strategy?

Investtech – Research report

Results:

Investtech – Research report

Success pecentage after one formation length (1L)‏

1,088 rectangles identified on the Oslo exchange 1996-2008. Average: 13.4 % height, 98 days length

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Formations

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Volume

• CONFIRMS OR WEAKENS TREND DIRECTION, BREAKS THROUGH SUPPORT/RESISTANCE, AND SIGNALS FROM FORMATIONS

• INDICATES COMING TREND BREAKS/SIGNALS

• TRUST

• UNDERESTIMATED AS TECHNICAL INDICATOR

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Volume

Supply

Demand

Price

Volume

Volume

Negative volume Positive volume

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Volume Technical analysis

Positive trend

Buy signal from

formation

support

Near support

Technical analysis

Medium

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www.investtech.com

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Research report Solid excess return with the Daily Case

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