TECHNICAL ANALYSIS-

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Basics of Technical Analysis

Technical analysis is used to forecast stock prices on the basis of

market-derived
data.
Technicians (also known as quantitative analysts or chartists)
usually stare at price,
volume and psychological indicators over time.
They look for trends and patterns in the data that indicate future
price movements.
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Why Technical Analysis
TA is useful with various Aspects and in Various ways
Trends for Coming Days.
Trends mean whether it is Up trend or Down Trend
TA is mostly used in West and Some Asian Countries like
Japan for More than 125 to 150 Years Back.
In India, it is popular from last 20 to 25 years.

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Fundamental vs. Technical
The Difference between TA and FA is that, FA finds the reasons for
stock to move up/Down due to result. Whether TA is not concern
with the reason.
In TA, sometimes reason may come afterward for stocks to move
up or down.

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The
Thelogic behind
Logic Technical Analysis
of Technical
Analysis
Supply and demand determine prices

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Assumptions of Technical
Analysis

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Charts
Candle Stick Chart
Position

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Line Chart

Line charts are familiar to all types of analysts and are a simple graphic display of
price trends over time. Usually, the chart is a plot of data points, such as share
price, with a line connecting these points.
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Bar Chart

A bar chart, in contrast, has four bits of data in each entrythe high and low price
encountered during the time interval plus the opening and closing prices
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(*) Candel Stick

Green Candle and Red candle.

There are four price in candle.
Open
High
Low
Close.
If Open to close is high it is a green candle.
If open to close Below it is a Red candle.
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 Candle
Candel StickStick Charts

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Price and Volume

PriceVolume
Is Trending
Confirmation:
Divergence:
Is Decreasing
Increasing
Higher
Trend
Trend
or Lower
Will
WillEnd
Continue

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Trend Analysis

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upport and Resistance

Support

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Chart Patterns

ChartContinuation
Reversal
Patterns
Double
Triple
Triangles
Head
Flags
Rectangles
Patterns
and
Tops
Tops
Patterns
Shoulders
Pennants

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Types of Charts

Construction of Charts:-
There are two Axis 1. X-Axis and 2. Y-Axis.
X-Axis - Shows Time period of the Stocks.

Y-Axis Shows Value of the Stocks.

Time Period Means:- Price can be plotted on the charts

from Minute to year

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Types of Charts
Types of Charts

Minute-to-Minute Charts.
Daily Charts.
Weekly Charts.
Monthly Charts.
Yearly Charts.

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Types of Trends

Up Trend

Down Trend

Flat or Sideways Trend

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Up trend

In Up Trend , stocks prices move in upward direction.

Formation is higher top and higher bottom. One
should buy at every decline.

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Up trend

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Down Trend
2) Down Trend:-

In down trend, stocks prices move in downward

direction.
Formation lower bottom and lower top. One should sell at every
rise

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Trend Analysis

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3) Flat or Trend
Sideways Sideways Trends:-
In sideways trends, stocks prices move in narrow range
neither going up wards nor down wards.
Here, one should have to wait for the clear trend
whether up or down.

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Technical Indicators

Price-Based Indicators

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Price-Based Indicator: Moving
Average

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Price-Based Indicator: Bollinger
Band

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1st Indian Institute for Live
Market Training

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THANK YOU ALL

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