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Smeal Technical Analysts

The document provides an agenda for a first meeting of the Smeal Technical Analysts club. The agenda includes an overview of the club, an introduction to technical analysis and TradeStation software, and discussions of the CMT designation, what a stock is made up of, technical analysis versus fundamental analysis, different types of indicators and patterns used in technical analysis, other markets that can be analyzed, how to use TradeStation software, how stock prices are determined, types of charts including bar charts and candlestick charts, using different timeframes, and a walkthrough of TradeStation.

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collegetradingexchange
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142 views

Smeal Technical Analysts

The document provides an agenda for a first meeting of the Smeal Technical Analysts club. The agenda includes an overview of the club, an introduction to technical analysis and TradeStation software, and discussions of the CMT designation, what a stock is made up of, technical analysis versus fundamental analysis, different types of indicators and patterns used in technical analysis, other markets that can be analyzed, how to use TradeStation software, how stock prices are determined, types of charts including bar charts and candlestick charts, using different timeframes, and a walkthrough of TradeStation.

Uploaded by

collegetradingexchange
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PDF, TXT or read online on Scribd
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Smeal Technical Analysts

First Meeting Agenda

• Overview of the club


• Introduction to Technical Analysis
• Introduction to TradeStation
CMT
• The CMT is the only Technical Analysis
designation that is recognized by the
NYSE and NASDAQ.
• It is also the only designation for Technical
Analysts test that qualifies as a Series 86
exemption
• Series 86 - Is a Research Analyst,
recognized by the NYSE and the
NASDAQ
What is a stock?

• Piece of paper indicating partial


ownership of a corporation.
• Stocks are traded on exchanges
What makes up a stock price?

• Nothing but the Bid and Ask


What is Technical Analysis
Technical analysis is determining future prices based on
past prices

• Investopedia (great resource) says: A


method of evaluating securities by analyzing
statistics generated by market activity, such
as past prices and volume. Technical
analysts do not attempt to measure a
security's intrinsic value, but instead use
charts and other tools to identify patterns that
can suggest future activity.

Question: what does Technical Analysis and weather forecasting have in common
Video

• http://www.youtube.com/watch?v=4lc8788xU7Y&feature
=PlayList&p=3AC86BA75E662093&index=1

• http://www.youtube.com/watch?v=VWRv9l6wrr8&feature
=PlayList&p=3AC86BA75E662093&index=0
The difference between Technical
and Fundamental analysis
• Fundamental analysts look at how the company
is performing and how it will perform in the future
using indictors such as:
– EPS, Revenue, Expenses, Assets, Liabilities
– Economic Indicators - GDP, Inflation, Labor
• Technical analysts look at charts and other
indicators such as:
– Momentum, Moving averages, Volume , Stochastics
– Trend Lines, Fibonacci Retracements, Support,
Resistance
Indicators and Analysis
• There are several different types of
indicators however there are 3 different
kinds the first kind called linear includes:
– Bollinger Bands
– Moving Averages
– MACD
– Momentum
– Volume
– RSI
Next we have Patterns
• Bullish Engulfing
• Bullish Harami
• Hammer
• Inverted Hammer
• Morning Star
• Head and shoulders
• Double Bottoms
• Symmetrical Triangle
Then we come to Non-linear
• Trend, Fibonacci lines, Support,
Resistance
Other markets
• Derivatives
• Options
• Futures
• Commodities
Trade Station

• One of the greatest resources made for


technical analysis
– Analyze stock patterns, trends, analysis techniques
• Back test strategies, and determine profitability
over long periods of time
How are stock prices
determined?
• Bid - What people are willing to buy at
• Ask - What people are willing to sell at
• Spread - Difference between bid and ask price

Market Depth
Window
What is Chart?
• A chart can described as a sequence of
prices plotted over a specific time frame
• The X-axis represents the time scale while
the Y-axis represents the price sequence
• Prices are plotted from left to right with the
most recent being the furthest on the right
Types Of Charts
• Bar Charts

• Candlestick Graphs
Bar Charts
Bar Charts
• The most popular charting method (Tradestation
default)
• Very detailed graphing that allows for high data
importation
• To form a bar chart at least a high, low, and
close are needed
• Trade Station includes the open, high, low, and
close as a default
• Like the name bar graphs are made up of
individual bars.
• On a daily time frame each bar represents one
day
Candlestick Charts
Bullish Candlestick Bearish Candlestick
Candlestick Charts
• A basic “candlestick” is composed of the body
and an upper and lower candles or shadows

• Depending on how an equity closed the


candlestick will have either a red or green body

• A green body occurs when the close is above


the open and vice versa
Candlestick Charts
• Interpretation of candlestick graphs is relatively
difficult and involves lengthy analysis
• In recent times candlestick pattern recognition
has been favored by traders because most of
the emerging patterns that are found last on a
short term basis (usually 10 trading sessions)
• Further the identification of widely known
candlestick formation has led to explosive rallies
Timeframes
• Using different timeframes may yield different
results because of a traders ability to identify a
trend
• Some traders look at higher time frames for the
trend, and lower timeframes for directional
intraday swing trades
• Different timeframes will affect the results of the
indicators and strategies that you use
TradeStation Walkthrough
• Opening a chart

• Changing between timeframes

• Changing chart type

• Add Volume and Moving Averages

• Draw a trend line

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