The advantage in using technical analysis is that helps you to understand the trend which is very important when entering the market. Other indicators such as advance / decline ratio gives you a better gauge about sentiments.

1. hisham's writing pad/technical analysis
Advanced Concepts in Technical Analysis
Technical Analysis can be a powerful tool in
Stockmarkets, FX markets and Commodity
Futures markets

2. hisham's writing pad/technical analysis
Advanced Concepts
● DOW THEORY – market tops that are higher may indicate an upward trend, while market
bottoms which are lower each time would indicate a downward trend
● Elliot Wave Theory – a study of prices that are observed to move in waves as seen recently
in Chinese stocks
● Rate of Change Indicator – increased momentum make prices volatile
● Moving Averages – predict market turning point with the long term MA lagging, and the
crossing of two long term MA indicate a likely shift in trend from up to down or down to up.
● Candlestick Charts – give a very clear picture of price activity in a market with open, close,
high & low. Most interesting is the Spinning Top and the Dragon Fly Dodi which could cause
price reversals due to indecisiveness.
● American Style High Low Close Chart clearly show prices moving in waves
● Gaps seen a price chart allows investors to speculate on a temporary change in trend
● Point & figure is a traders chart that is sometimes referred to as a reversal chart. Some
traders have a 2-box reversal to be sure the trend has turned

3. hisham's writing pad/technical analysis
DOW THEORY
● DOW Theory tells you that there is a definite primary trend
if the tops are rising. In a declining trend the tops will be
lower.
● Elliot wave theory is based on the Fibinocci series which is
as follows
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●
● Both the DOW theory and the Elliot Wave theory are
similar

4. hisham's writing pad/technical analysis
MOVING AVERAGE AS A FORWARD
LOOKING TOOL

5. hisham's writing pad/technical analysis
Candlestick Chart

6. hisham's writing pad/technical analysis
American Style High Low Close Chart