01 Technical-Analysis-Technical-Tools

Download as pptx, pdf, or txt
Download as pptx, pdf, or txt
You are on page 1of 9

Technical

Analysis –
Technical Tools
Technical analysis involves the study of historical
price and volume data to identify patterns and trends
that can help predict future market movements. This
section will explore the key technical tools used by
investors and traders to make informed decisions.

by Rashi Dubewar
Introduction to
Technical Analysis
1 Price Action 2 Indicators
Studying the behavior Mathematical
of a security's price calculations based on
movements over time price and volume data
to identify patterns that help identify
and trends. potential buy or sell
signals.

3 Charting
Visualizing price data using various chart types
to uncover insights about a security's
performance.
Candlestick Patterns
Bullish Patterns Bearish Patterns Continuation Patterns

Candlestick patterns like the Bearish patterns like the Patterns like the Doji and
Hammer, Inverted Hammer, and Shooting Star, Hanging Man, Spinning Top can suggest the
Engulfing Pattern can signal and Bearish Engulfing can current trend may continue in
potential bullish reversals. indicate potential trend the same direction.
reversals.
Support and Resistance
Levels
1 Support
Price levels where buying pressure is expected
to emerge, halting a downward trend.

2 Resistance
Price levels where selling pressure is
expected to emerge, limiting an upward trend.

3 Breakout
When price moves above resistance or below
support, it can signal a potential trend
change.
Moving Averages

Simple Moving Average


Calculates the average price over a given time period.

Exponential Moving Average


Gives more weight to recent prices, responding faster to price changes

MACD
Measures the difference between two moving averages to identify
trend changes.
Trend Lines
Uptrend
A series of higher highs and higher lows,
with an upward sloping trend line.

Downtrend
A series of lower highs and lower lows, with
a downward sloping trend line.

Breakout
When price breaks above or below a trend
line, it can signal a potential trend change.
Oscillators
RSI Stochastic
Relative Strength Index Compares a security's
measures momentum, closing price to its
identifying overbought price range over a
and oversold given time period.
conditions.

MACD
Moving Average Convergence Divergence identifies
trend strength and potential reversals.
Volume Analysis
1 Volume Trends
Analyzing volume patterns can confirm or
contradict price movements, providing insights
into market sentiment.

2 Volume Spikes
Sudden increases in volume can signal a
potential price breakout or reversal,
depending on the context.

3 On-Balance Volume
A cumulative volume indicator that tracks the
flow of money into and out of a security.
Putting it all Together
Comprehensive Adaptability Continued Learning
Approach
Successful traders are able Technical analysis is an
Combining multiple technical to adapt their strategies ongoing process, and traders
tools and analyzing their based on changing market must continuously expand
interactions can provide a conditions and the unique their knowledge and refine
more holistic understanding characteristics of different their skills.
of market dynamics. securities.

You might also like