Sandeep Technical Analysis

8/21/2019 Sandeep Technical Analysis

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Humble pranamsat thy lotus feet



use andmisuse of

Technicalanalysis



Technical analysis

It is a method of analyzing a stock’sfuture price movements by studying

the past price and volume data.

The basis of technical analysis:-

Price discounts everything

Price movements are not totally

random

What is more important than why



Assumptions of technical

analysis

Market discounts everything

Price moves in trends

History tends to repeat itself



Use of technical analysis

Not just for stocks

Focus on price

Supply, demand and price action

Timing the buy and sell

Helps in controlling risks

Mainly used by traders



misuse of technical

analysis Analyst bias

Open to interpretation

Too late

Each securities will have different

tools as the best tool



Challenges in technical

analysis It works on Pareto

principle(psychological and logical)

Technical analysis focuses directly onthe bottom line:

What is the price?

Where has it been?

Where is it going?



Challenges in technical

analysis cont.) More art than a science

Each investor should use only that

which suits his or her style.

Developing a style takes time, effortand dedication, but the rewards can

be significant.



ChartsLine Chart



Charts cont) Bar chart



Charts cont)

candlesticks



Charts cont)

Hammer Hanging man Shooting star and inverted hammer Bullish engulfing Bearish engulfing Piercing Bearish Harami

Bullish Harami Morning star Doji



Patterns

Support and Resistance



Patterns cont) Head and shoulders



Patterns cont)

Double top

Double bottom

Triple top

Rounded top and bottom

Gaps



Gaps



Gaps cont)



Indicators

Leading indicatorsCommodity Channel Index (CCI)

Momentum

Relative Strength Index(RSI),

Stochastic Oscillator

Williams %R.

Lagging indicatorsMoving averages

MACD



Indicators cont)



oscillators rsi



Oscillators cont)

Stochastic

MACD

Elliott Wave



Oscillators cont) Stochastic



Oscillators cont) Elliot wave



Oscillators cont)

Elliot wave



trading

Day Trading Advantages

Zero Overnight risk

Profit in any market direction

High leverage

High returns

Risk associatedPossibility of large losses

Stress

Borrowed money

Costs involved



Trading Strategies

Setting stop loss and following itForget the news, remember the

chart

Buy at support, sell at resistance

The trend is your friend in the lasthour

Bulls live above the 200 day, bears

live belowBig volume kills moves



Trading Strategies cont)

Don’t trust others opinions

Don’t break your rules

Don’t believe in a company

Don’t chase the crowd

Don’t ignore the warning signs



Some quotes in the area of

technical analysis

“The Trend is your friend until theend when it bends.” Anonymous

You are buying the stock, no t thecompany

The biggest m istake that a

fundamental analyst makes is

th ink ing that a stock and a

company are the same………



Some quotes in the area of

technical analysis Cont)

……… The biggest m istake that a

technical analyst makes is think ing

that a stock and a company are

different.

Techn ical analys is deals w ith

probabi l i ties to help the analyst

f igure ou t how to act



Thank you

Sandeep Technical Analysis

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