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Module 2 part 1

The document provides an overview of technical analysis in trading, including its basic concepts, techniques, and the importance of market indicators. It emphasizes understanding market behavior through price and volume analysis, as well as key trading principles such as risk and reward. Additionally, it introduces tools and resources for conducting technical analysis and charting.

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kozabaster
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Download as PDF, TXT or read online on Scribd
8 views

Module 2 part 1

The document provides an overview of technical analysis in trading, including its basic concepts, techniques, and the importance of market indicators. It emphasizes understanding market behavior through price and volume analysis, as well as key trading principles such as risk and reward. Additionally, it introduces tools and resources for conducting technical analysis and charting.

Uploaded by

kozabaster
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Building up

on the how!
• Understanding Technical Analysis
• What is trading about?
• Basic assumptions of Technical Analysis
• Understanding jargons
• Understanding Charting
• Learning a few Technical Analysis
Techniques, Indicators & Oscillators
• Conducting Charting
• Power of using technology to our advantage
• Learning order placing and its entire
mechanism, etc
Is this the right time OR the right price to buy Reliance?

Stock price per share

Price
Volume

Timeframe
What is Technical Analysis?
• Technical analysis is a method of evaluating securities
by analyzing the statistics generated by market
activity, such as past prices and volume.

• Technical analysis really just studies supply and


demand in a market in an attempt to determine what
direction, or trend, will continue in the future.

• Technical analysis attempts to understand the


emotions in the market by studying the market itself,
as opposed to its components.
Heads I win, tails I
don’t lose much.
Monish
Pabrai
Important concepts
• Current Market Price
• Stop Loss
• Target
• Risk
• Reward
• Reward Risk Ratio

What should you keep in mind


as a trader?
Important concepts
• Market depth
• Market breadth
• Advance Decline Ratio
• Market Indexes and its types
• Upper circuit and lower circuit

https://www.nseindia.com/market-data/live-equity-market

https://www.moneycontrol.com/stocksmarketsindia/heat-
map-advance-decline-ratio-nse-bse

https://www.moneycontrol.com/india/stockpricequote/diversif
ied/nesco/NES
Market depth
Positional sizing – the game breaker
What is a candlestick?
High High
Higher Tails/Shadows/Wicks

Close Open

Body

Open Close

Lower Tails/Shadows/Wicks
Low Low
Note : Some website/applications use white for denoting a positive day and black for denoting negative day.
The charts used in the presentation have a white candle for positive day and red candle for negative day.
Exploring Chartink and understanding tools?

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