Technical analysis
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The document discusses advanced concepts in technical analysis applicable to stock, forex, and commodity markets. It covers various theories and tools such as Dow Theory, Elliott Wave Theory, moving averages, and candlestick charts, emphasizing their significance in identifying market trends and potential price reversals. Key concepts include market trends, momentum indicators, and chart patterns that traders utilize for analysis and decision making.
Technical analysis
- 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 ● ● ● 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