5 Steps to Picking Direction Like a Professional Trader

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The 5 Steps to
Picking Direction
Like a Professional
5

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Disclaimer
Any advice contained in this communication is general only and does not consider your objectives, financial
situation or needs, and you should consider whether it’s appropriate for you. If you are thinking about acquiring
a financial product, you should consider our Financial Services Guide (FSG) at www.traderscircle.com.au and
the relevant Product Disclosure Statement (if there is one available) first.
Trading options is not suitable for everyone. There is a risk that you can lose more than the value of a trade or
its underlying assets. You should only act on our recommendations if you are confident that you fully understand
what you are doing.
Past returns do not reflect future returns, and it is also possible to make significant losses. We employ expert
traders and use strategies that maximise returns and minimise risk. However, there is always a risk of loss when
trading and investing. This is general information, and is not prepared for your specific investment objectives,
financial situation or needs. Consult a licensed investment adviser before making investment decisions.
TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd,
AFSL number 241041.

Many Traders or Investors use Technical Analysis
to attempt to determine future changes in a
company or market’s price.
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Being good at Technical Analysis allows us to
be able to see trading opportunities quickly.
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Technical Analysis is a widely-used method
and is used to examine a chart to forecast its
future performance.
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Similar to the way Meteorologists predict the
weather, they use past and present data to
predict future patterns.
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But also like predicting the weather, using
Technical Analysis doesn’t result in predicting
future price movements 100% percent of the time.
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However, if done correctly it can give you a
significant edge in the market.
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These are the 5 steps of analysis
we use to arrive at a decision.

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1Identify the Range & Trend

Support Level
Support Level
Support Level
Where buyers see value and
come back into the market
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Resistance Level
Resistance Level
Resistance Level
Where sellers take profit or want
to close out their positions
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Trend
Trend
Trend
When a support or resistance line
rises over time, this creates a trend.
Resistance Level
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Trading Range
Trend
Trading Range
This information shows the likely
ranges that we would expect the
market to trade in.
Resistance Level
Support Level
Resistance Level
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Trading Range
Trend
Trading Range
It can indicate how much movement
we can expect to achieve.
Resistance Level
Support Level
Resistance Level
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2Identify an Entry Point

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A Bar Chart will provide evidence of what buyers
and sellers are doing on a given day.

Bar Chart
Entry Point
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A Bar Chart shows...
Open Open
The opening price
of the day
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High
High
The highest price it
reached for the day
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Low
Low
The lowest price it
reached for the day
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Close
Close
The closing/current
price for the day
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Bar Chart
Entry Point
This will show you if the
buyers or sellers are in
control for the day. It can
help us identify an entry
point.
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3Use Indicators to Confirm Entry Point

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Indicators assist in giving more detail to the view
and help add to the probability of being correct

Stochastics
Stochastics give insight into the momentum of
buyers and sellers.
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Stochastics
For example if the stochastics are at the bottom of
their range and pointing up, this can mean buyers
are taking control over the sellers.
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Relative Strength Index (RSI)
The RSI is also used to determine momentum.
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Relative Strength Index (RSI)
If the RSI is trending similar to the price movement
on the chart, this will help confirm our view.
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4Consider Fundamental Information

Consider Fundamental Information
Be aware of any scheduled key announcements
that could affect the stock price.
Brexit Vote
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Consider Fundamental Information
This could have an adverse effect on your view, or
be used to your advantage.
Brexit Vote
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5Make a Balanced Decision

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Once you have gone through each of these steps,
the final thing you need to do is consider all of
the information you have gathered together, and
make a final decision.

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Will you enter the trade, or not?

But if you’re going to do this, you need to
learn how to do it properly.
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You can’t just become great at something
just from reading about it.
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You need practical education and expert support.
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Our courses are designed
to fast track you to have the
knowledge and the skills to
trade like a professional

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TradersCircle
P ASX Education Partner
P Comprehensive Trading Education
P We support you every step of the way

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To receive our course
outline and learn more,
simply register your details
using the form provided

5 Steps to Picking Direction Like a Professional Trader

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