2. The Crowd May Be Wrong, but They ’ re Still
the Crowd
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3. Definition
• Technical analysis is a security
analysis discipline for forecasting the future
direction of prices through the study of past
market data, primarily price and volume.
(wikipedia)
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4. Principles
• Market action discounts everything
– All information is already reflected by prices.
• Prices move in trends
– Markets trend up, down, or sideways (flat)
• History tends to repeat itself
– Investors collectively repeat the behavior of the
investors that preceded them
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8. Uptrend
• Uptrend as a time when successive rallies in a
security price close at levels higher than those
achieved in previous rallies and when lows
occur at levels higher than previous lows.
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12. Uptrend
• Looking at the Angle of the Trend Line
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13. Downtrend
• As the highs are getting lower and the lows
are also moving successively lower.
• A negative slope.
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18. Sideways Trend
• Time on a chart where prices lay flat or move
within a well - defined trading range. (or we
call that range bounce)
Can profit from the
clear lines of support
and resistance, which
allows them to manage
their risk.
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19. What is support & resistance ???
• Support is the level at which demand for the stock is
strong enough to keep the stock from dropping any
further
• Resistance is the price level at which the selling pressure
is strong enough to prevent the stock from rising further
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