Technical Analysis Project

The Indian Institute of
Financial Planning
Technical Analysis
A Project Report
Submitted By
Shraddha Singh
MBA – 6A

Acknowledgement
I would like to express my special thanks of
gratitude to my professor (Mr. Amit Bagga)
(CA) as well as our Director (Mr. Niamatulla)
who gave me the golden opportunity to do
this wonderful project on the topic
(Technical Analysis), which also helped me
in doing a lot of Research and I came to
know about so many new things I am really
thankful to them.
Secondly I would also like to thank other
faculty member for their moral support & my
parents and friends who helped me a lot in

finalizing this project within the limited time
frame.
Shraddha Singh
MBA-6A
The Indian Institute of Financial Planning
Declaration
I Shraddha Singh hereby declares that
the work entitled “Technical Analysis” is
my original work. I have not copied from

any other students’ work or from any other
sources except where due reference or
acknowledgement is made explicitly in the
text, nor has any part been written for me
by another person.
Shraddha Singh
MBA-6A

Table of Content
Introduction to Technical Analysis
Dow Theory
Charts
Candlesticks
Support And Resistance
Chart Patterns
Technical Indicator
Moving Averages
Relative Strength Index
MACD
Stochastic
Fibonacci Ratios
Elliot Waves

Bibliography
1.Introduction to Technical
Analysis
Technical Analysis is the forecasting of future
financial price movements based on an
examination of past price movements. Like
weather forecasting, technical analysis does
not result in absolute predictions about the
future. Instead, technical analysis can help
investors anticipate what is "likely" to happen
to prices over time. Technical analysis uses a
wide variety of charts that show price over
time.

Technical analysis is applicable to stocks,
indices, commodities, futures or any tradable
instrument where the price is influenced by
the forces of supply and demand. Price refers
to any combination of the open, high, low, or
close for a given security over a specific time
frame. The time frame can be based on
intraday (1-minute, 5-minutes, 10-minutes, 15-
minutes, 30-minutes or hourly), daily, weekly
or monthly price data and last a few hours or
many years. In addition, some technical
analysts include volume or open interest
figures with their study of price action.
In finance, technical analysis is a security
analysis methodology for forecasting the direction
of prices through the study of past market data,

primarily price and volume. Behavioral
economics and quantitative analysis use many of
the same tools of technical analysis, which, being
an aspect of active management, stands in
contradiction to much of modern portfolio theory.
The efficacy of both technical and fundamental
analysis is disputed by the efficient-market
hypothesis which states that stock market prices
are essentially unpredictable.
The technical analysis is an art to identify, a
trend reversal at a relatively early stage and
ride on that trend until the weight of the
evidence shows or proves that the trend has
reversed.

The Dow theory was developed by William P.
Hamilton, Robert Rhea, and E. George
Schaefer from the work of Charles H. Dow,
who was the founder and first editor of the
Wall Street Journal and the co-founder of Dow
Jones and Company, from which we still
today have the Dow Jones Industrial Average.
The Dow Theory forms the basis of technical
analysis, in which investment decisions are
made on the basis of trends in the stock chart
as opposed to qualities of the underlying
company or the stock price.
In short, the Dow Theory says the market is
trending upwards when both the Dow Jones
Industrial Index and the Dow Jones
Transportation Index exceed a previous,

important high. Similarly, the market is
trending downwards when both averages fall
below previous lows. Technical investors seek
to invest with the primary trend, not against it,
i.e., buying during upward trends and selling
during downward trends.
The Dow Theory has six basic assumptions.
The market discounts all news, that is, all
of the news on a given company is
already priced into the stock.
The market has three main trends: the
primary trend (the overriding trend of the

market), the secondary trend (a smaller
correction of the primary trend), and the
minor trend (a correction of the secondary
trend). Investors shouldn't confuse a
secondary trend (a correction) with the
primary trend.
Every primary trend has three phases. In
a bull market, the phases are the
accumulation phase (when informed
investors get involved after a bear
market), the public participation phase,
and the excess phase (when prices are
run up). In a bear market, the phases are
the distribution phase (when informed
investors get out after a bull market), the
public participation phase, and the panic
phase. Accumulation phases and

distribution phases are the most difficult to
see, but also the most rewarding.
The switch from a bear market primary
trend to a bull market trend or vice versa
cannot be confirmed until both indexes are
in agreement.
Volume is a secondary indicator to confirm
the market trend. It should go up when
prices are following the trend and go down
when prices are going against the trend.
3. Price Charts
A chart is simply a graphical representation of
a series of prices over a set time frame. For
example, a chart may show a stock's price
movement over a one-year period, where
each point on the graph represents

the closing price for each day the stock is
traded.
Chart Properties
1. The Time Scale
The time scale refers to the range of dates at
the bottom of the chart, which can vary from
decades to seconds. The most frequently
used time scales are intraday, daily, weekly,
monthly, quarterly and annually. The shorter
the time frame, the more detailed the chart.
Each data point can represent the closing
price of the period or show the open, the high,
the low and the close depending on the chart
used.
Daily charts are comprised of a series of price
movements in which each price point on the

chart is a full day's trading condensed into
one point. Again, each point on the graph can
be simply the closing price or can entail the
open, high, low and close for the stock over
the day. These data points are spread out
over weekly, monthly and even yearly time
scales to monitor both short-term and
intermediate trends in price movement.
Weekly, monthly, quarterly and yearly charts
are used to analyze longer term trends in the
movement of a stock's price. Each data point
in these graphs will be a condensed version of
what happened over the specified period. So
for a weekly chart, each data point will be a
representation of the price movement of the
week

2. The Price Scale and Price Point Properties
The price scale is on the right-hand side of the
chart. It shows a stock's current price and
compares it to past data points. This may
seem like a simple concept in that the price
scale goes from lower prices to higher prices
as you move along the scale from the bottom
to the top.
Charts Types
There are four main types of charts that are
used by investors and traders depending on
the information that they are seeking and their
individual skill levels. The chart types are: the
line chart, the bar chart, the candlestick chart
and the point and figure chart
1. Line Chart

Line chart is the most basic and simplest type
of stock charts that are used in technical
analysis. The line chart is also called a close-
only chart as it plots the closing price of the
underlying security, with a line connecting the
dots formed by the close price. In a line chart
the price data for the underlying security is
plotted on a graph with the time plotted from
left to right along the horizontal axis, or the x-
axis and price levels plotted from the bottom
up along the vertical axis, or the y-axis. The
price data used in line charts is usually the
close price of the underlying security. The
uncluttered simplicity of the line chart is its
greatest strength as it provides a clean, easily
recognizable, visual display of the price
movement. This makes it an ideal tool for use
in identifying the dominant support and

resistance levels, trend lines, and certain
chart patterns. However, the line chart does
not indicate the highs and lows and, hence,
they do not indicate the price range for the
session. Despite this, line charts were the
charting technique favored by Charles Dow
who was only interested in the level at which
the price closed. This, Dow felt, is the most
important price data of the session or trading
period as it determined that period's
unrealized profit or loss.

Fig- Showing The Line Chart
2. Bar Chart
Bar charts are one of the most popular forms
of stock charts and were the most widely used
charts before the introduction of candlestick
charts. Bar charts are drawn on a graph that
plots time on the horizontal axis and price
levels on the vertical axis. These charts
provide much more information than line
charts as they consists of a series of vertical

bars that indicate various price data for each
time-frame on the chart. This data can be
either the open price, the high price, the low
price and the close price, making it an OHLC
bar chart, or the high price, the low price and
the close price, making it an HLC bar chart.
The height of each OHLC and HLC bar
indicates the price range for that period with
the high at the top of the bar and the low at
the bottom of the bar. Each OHLC and HLC
bar has a small horizontal tick to the right of
the bar to indicate the close price for that
period. An OHLC bar will also have a small
horizontal tick to the left of the bar to indicate
the open price for that period. The extra
information is one of the reasons why the
OHLC charts are more popular than HLC
charts. In addition, some charting applications

use colors to indicate bullish or bearishness of
a bar in relation to the close of the previous
bar. This makes the OHLC bar chart quite
similar to the candlestick chart, except that the
OHLC chart does not indicate bullishness or
bearishness of the period of one bar as clearly
as the candlestick chart (the color of an OHLC
bar is always in relation to the close of the
pervious bar rather than the open and close of
the current bar).

Fig Showing Bar Chart (OHLC)
3. Candlesticks Charts
Japanese candlestick charts form the basis of
the oldest form of technical analysis. They
were developed in the 17th century by a
Japanese rice trader named Homma.
Candlestick charts provide the same
information as OHLC bar charts, namely open
price, high price, low price and close price,
however, candlestick charting also provide a
visual indication of market psychology, market

sentiment, and potential weakness, making it
a rather valuable trading tool. Candlesticks
indicate a bullish up bar, when the closing
price is higher than the opening price, using a
light color such as white or green, and a
bearish down bar, when the closing price is
lower than the opening price, using a darker
color such as black or red for the real body of
the candlestick. Thus, on a green candlestick,
the close price will be at the top of the
candlestick real body and the open price at
the bottom as the close price is higher than
the open price; conversely on a red bar the
close price will be at the bottom of the
candlestick real body and the open price at
the top as the close price is lower than the
open price. For both a bullish and a bearish
candlestick, the high price and the low and the

low price for the session will be indicated by
the top and bottom of the thin vertical line
above and below the real body. This vertical
line is called the shadow or the wick.
The shape and color of a candlestick can
change several times during its formation.
Therefore the trader must wait for the
candlestick to be formed completely at the
end of the time-frame to analyze the
candlestick, forcing the trader to wait for the
bar to close.

Fig- Showing Candlesticks Chart On Nifty Daily
4. Candlesticks Patterns
1. Bullish Engulfing

Bullish Engulfing is an important bottom
reversal pattern. It appears after a downtrend.
It's a two candlestick pattern. In this, a large
white candle completely engulfs the preceding
small black candle. Though it is not necessary
for the white candle to engulf the shadows of
the previous black candle, it should engulf the
entire real body. It's an important bullish
reversal signal. Heavy volume on second day
of the pattern creates higher probability of
trend reversal.

Fig Showing Bullish Engulfing Candlesticks
Interpretation- Bullish Engulfing Pattern around
460 price level , We will enter this trade around
Rs.470, And exit At 530 where candles are
forming a hanging man patter which is an reversal
pattern.
2. Bearish Engulfing
Bearish Engulfing is one of the important
bearish reversal patterns. It appears after an
uptrend. It's a two candlestick pattern. In this,
a large black candle completely engulfs the
preceding small white candle. Though it is not
necessary for the black candle to engulf the
shadows of the previous white candle, it
should engulf the entire real body. Heavy

volume on second day of the pattern creates
higher probability of trend reversal.
Fig Showing: Bearish Engulfing Candlestick
Interpretation- Bullish Engulfing Pattern formed at
480 price level on 10-feb-2014 . We can short sell
this stock at around Rs.487 and can buy back
around Rs.465, where Bullish Harami pattern is
formed.

3. Bullish Harami
Bullish Harami is a bullish reversal pattern. It
is characterized by a large black candle,
followed by a small white candle. The white
candle is contained completely within the
previous black candle. The pattern appears in
a downtrend. A long black candle is seen,
which is followed by a small white candle,
which is completely engulfed by the previous
day candle. Shadows need not be
compulsorily engulfed, but real body should

be. The market is entering in an indecision or
congestion phase post Bullish Harami.
Fig Showing Bullish Engulfing Candlesticks
Interpretation-Bullish Harami has formed Asian
Paints on 21-Feb-2014 around Rs.460 price levels
we can enter this stock by buying it around
Rs.465.We can continue to hold this positing till
there is a sign of bullish reversal.
4. Bearish Harami
Bearish Harami is a bearish reversal pattern.
It is characterized by a large white candle,
followed by a small black candle. The black
candle is contained completely within the
previous white candle. The pattern appears in
an uptrend. A long white candle is seen,

which is followed by a small black candle,
which is completely engulfed by the previous
day candle. Shadows need not be
compulsorily engulfed, but real body should
be.
Fig Showing Bearish Harami Candlestick
Interpretation- After an uptrend Bearish Harami
formed on Bharti Airtel around Rs.370 after an
confirmation from next candle which shows and
gap down opening. So here we can enter the
market by taking a short position at Rs.360 and

can exit the market around Rs.332 where market
is reversing because of Bullish Harami formation.
5. Hammer
Hammer is a bullish reversal pattern, which
occurs at the bottom of a trend. This pattern
appears after or during a downtrend. It is a
single candlestick pattern. It resembles with
Bullish Dragonfly Doji. The only difference is
doji has same opening and closing while

Hammer has a small real body at the upper
end. Colour of Hammer is not important.
However, it is considered as more potent, if its
colour is white. Lower shadow of Hammer
should be twice as long as real body. There
should be very little or no upper shadow.
Fig Showing Candlestick Patten: Hammer
Interpretation- 17-Feb-2014- Hammer pattern form
around price level of Rs.1100 , we can enter the
trade at Rs.1100 , And till now we haven’t seen
any trend reversal so we can continue with this
trade, and we can exit this trade as soon as we
seen any sign of trend reversal.
5. Inverted Hammer
Inverted Hammer is a bullish reversal pattern.
This pattern is characterized by a long upper

shadow and a small real body, appearing after
a long black real body. This pattern appears in
a downtrend. In this pattern, a long black
candle appears on first day. On second day, a
small real body appears which forms at the
lower end of range. Second day's candle has
upper shadow, which is at least twice as long
as the real body and does not have lower
shadow. Colour of the real body is not of
much importance.

Interpretation- On 3rd Feb there is a inverted
hammer followed by long black candle , inverted
hammer is a bearish reversal patter , so next day’s
white candle shows trend reversal so we can enter
the trade around price level of Rs.470 , we can
exit this trade on 10th of Feb which shows a dark
cloud cover which is a reversal pattern. We can
earn profit of Rs.20 per share if we exit around
Rs.490.
6. Shooting Star
Shooting Star is a bearish reversal pattern,
appearing at market top. Its a small real body
with long upper shadow and no lower shadow,

which gaps away from the previous candle.
This pattern appears in an uptrend. A white
candle is seen on first day. Next day, gap up
opening happens. This candle appears as a
small real body, with upper shadow at least
twice as long as the real body. It has no lower
shadow. The pattern indicates that the
uptrend is near to an end.
Interpretation- Shooting start is bullish reversal
pattern as it form at the top of the bull market; we
will sell this stock around Rs.66.5 and will exit from
this trade around Rs.61 as it shows bullish
engulfing at the down side.
5. Support and Resistance

Support and resistance represent key
junctures where the forces of supply and
demand meet. In the financial markets, prices
are driven by excessive supply (down) and
demand (up). Supply is synonymous with
bearish, bears and selling. Demand is
synonymous with bullish, bulls and buying.
These terms are used interchangeably
throughout this and other articles. As demand
increases, prices advance and as supply
increases, prices decline. When supply and
demand are equal, prices move sideways as
bulls and bears slug it out for control.
1. Support
Support is the price level at which demand is
thought to be strong enough to prevent the

price from declining further. The logic dictates
that as the price declines towards support and
gets cheaper, buyers become more inclined to
buy and sellers become less inclined to sell.
By the time the price reaches the support
level, it is believed that demand will overcome
supply and prevent the price from falling
below support.
Support does not always hold and a break
below support signals that the bears have
won out over the bulls. A decline below
support indicates a new willingness to sell
and/or a lack of incentive to buy. Support
breaks and new lows signal that sellers have
reduced their expectations and are willing
sell at even lower prices. In addition, buyers
could not be coerced into buying until prices
declined below support or below the previous

low. Once support is broken, another support
level will have to be established at a lower
level.

2. Resistance
Resistance is the price level at which selling is
thought to be strong enough to prevent the
price from rising further. The logic dictates
that as the price advances towards
resistance, sellers become more inclined to
sell and buyers become less inclined to buy.
By the time the price reaches the resistance
level, it is believed that supply will overcome
demand and prevent the price from rising
above resistance.

Resistance does not always hold and a break
above resistance signals that the bulls have
won out over the bears. A break above
resistance shows a new willingness to buy
and/or a lack of incentive to sell. Resistance
breaks and new highs indicate buyers have
increased their expectations and are willing to
buy at even higher prices. In addition, sellers
could not be coerced into selling until prices
rose above resistance or above the previous

high. Once resistance is broken, another
resistance level will have to be established at
a higher level.
6. Chart Patterns
1. Head and Shoulders
A Head and Shoulders reversal pattern
forms after an uptrend, and its completion
marks a trend reversal. The pattern contains
three successive peaks with the middle peak
(head) being the highest and the two outside
peaks (shoulders) being low and roughly
equal. The reaction lows of each peak can be
connected to form support, or a neckline.
As its name implies, the Head and Shoulders
reversal pattern is made up of a left shoulder,

a head, a right shoulder, and a neckline.
Other parts playing a role in the pattern
are volume, the breakout, price target
and support turned resistance. We will look at
each part individually, and then put them
together with some examples.
1. Prior Trend: It is important to establish the
existence of a prior uptrend for this to be a
reversal pattern. Without a prior uptrend to
reverse, there cannot be a Head and
Shoulders reversal pattern (or any reversal
pattern for that matter).
2. Left Shoulder: While in an uptrend, the left
shoulder forms a peak that marks the high
point of the current trend. After making this
peak, a decline ensues to complete the
formation of the shoulder (1). The low of the

decline usually remains above the trend
line, keeping the uptrend intact.
3. Head: From the low of the left shoulder,
an advance begins that exceeds the
previous high and marks the top of the
head. After peaking, the low of the
subsequent decline marks the second point
of the neckline (2). The low of the decline
usually breaks the uptrend line, putting the
uptrend in jeopardy.
4. Right Shoulder: The advance from the low
of the head forms the right shoulder. This
peak is lower than the head (a lower high)
and usually in line with the high of the left
shoulder. While symmetry is preferred,
sometimes the shoulders can be out of

whack. The decline from the peak of the
right shoulder should break the neckline.
5. Neckline: The neckline forms by
connecting low points 1 and 2. Low point 1
marks the end of the left shoulder and the
beginning of the head. Low point 2 marks
the end of the head and the beginning of
the right shoulder. Depending on the
relationship between the two low points, the
neckline can slope up, slope down or be
horizontal. The slope of the neckline will
affect the pattern's degree of bearishness—
a downward slope is more bearish than an
upward slope. Sometimes more than one
low point can be used to form the neckline.
6. Volume: As the Head and Shoulders
pattern unfolds, volume plays an important

role in confirmation. Volume can be
measured as an indicator (OBV, Chaikin
Money Flow) or simply by analyzing volume
levels. Ideally, but not always, volume
during the advance of the left shoulder
should be higher than during the advance
of the head. This decrease in volume and
the new high of the head, together, serve
as a warning sign. The next warning sign
comes when volume increases on the
decline from the peak of the head. Final
confirmation comes when volume further
increases during the decline of the right
shoulder.
7. Neckline Break: The head and shoulders
pattern is not complete and the uptrend is
not reversed until neckline support is

broken. Ideally, this should also occur in a
convincing manner, with an expansion in
volume.
8. Price Target: After breaking neckline
support, the projected price decline is found
by measuring the distance from the
neckline to the top of the head. This
distance is then subtracted from the
neckline to reach a price target. Any price
target should serve as a rough guide, and
other factors should be considered as well.
These factors might include previous
support levels, Fibonacci retracements, or
long-term moving averages.

Interpretation- Head and Shoulder chart pattern
give sell signal after breaking the neckline, Bajaj
Auto breaches the level of neckline around
Rs.2067 so we will short sell the stock and we can
have price target of (2067-180=1887). Downfall of
price 180 is measured from perpendicular drawn
from top of head to neckline.
We will exit this trade around Rs.1887.

2. Reverse Head and Shoulder
Interpretation- Reverse head and shoulder pattern
in Maruti ltd. Shows the buying signal around Rs.
1546 ,and which have a price target of 1758 (i.e.
1758-1546=212)
So we will enter in this trade around 1546 and we
will exit around the price level of 1760.

3. Double Top
The Double Top Reversal is a bearish
reversal pattern typically found on bar charts,
line charts and candlestick charts. As its name
implies, the pattern is made up of two
consecutive peaks that are roughly equal, with
a moderate trough in-between.
Although there can be variations, the classic
Double Top Reversal marks at least an

intermediate change, if not a long-term
change, in trend from bullish to bearish.
Many potential Double Top Reversals can
form along the way up, but until key support is
broken, a reversal cannot be confirmed. To
help clarify, we will look at the key points in
the formation and then walk through an
example.
1. Prior Trend: With any reversal pattern,
there must be an existing trend to reverse.
In the case of the Double Top Reversal, a
significant uptrend of several months
should be in place.
2. First Peak: The first peak should mark the
highest point of the current trend. As such,
the first peak is fairly normal and the

uptrend is not in jeopardy (or in question) at
this time.
3. Trough: After the first peak, a decline
takes place that typically ranges from 10 to
20%. Volume on the decline from the first
peak is usually inconsequential. The lows
are sometimes rounded or drawn out a bit,
which can be a sign of tepid demand.
4. Second Peak: The advance off the lows
usually occurs with low volume and meets
resistance from the previous
high. Resistance from the previous high
should be expected. Even after meeting
resistance, only the possibility of a Double
Top Reversal exists. The pattern still needs
to be confirmed. The time period between
peaks can vary from a few weeks to many

months, with the norm being 1-3 months.
While exact peaks are preferable, there is
some leeway. Usually a peak within 3% of
the previous high is adequate.
5. Decline from Peak: The subsequent
decline from the second peak should
witness an expansion in volume and/or an
accelerated descent, perhaps marked with
a gap or two. Such a decline shows that the
forces of demand are weaker than supply
and a support test is imminent.
6. Support Break: Even after trading down to
support, the Double Top Reversal and
trend reversal are still not complete.
Breaking support from the lowest point
between the peaks completes the Double
Top Reversal. This too should occur with

an increase in volume and/or an
accelerated descent.
7. Support Turned Resistance: Broken
support becomes potential resistance and
there is sometimes a test of this newfound
resistance level with a reaction rally. Such a
test can offer a second chance to exit a
position or initiate a short.
8. Price Target: The distance from support
break to peak can be subtracted from the
support break for a price target. This would
infer that the bigger the formation is, the
larger the potential decline.

Figure-Showing Double Top (Coal-India)
Interpretation- Under Double Top Pattern – we
enter in trade when price break the support level
around Rs.275 so we short sell coal India and can
have potential price fall of Rs.25(i.e. difference
between the second peak and support break level.
We can exit this trade around Rs.245 which shows
and bullish engulfing candle which is a signal of
trend reversal.

4. Double Bottom
The Double Bottom Reversal is a bullish
reversal pattern typically found on bar charts,
line charts and candlestick charts. As its name
implies, the pattern is made up of two
consecutive troughs that are roughly equal,
with a moderate peak in-between.
Although there can be variations, the classic
Double Bottom Reversal usually marks an
intermediate or long-term change in trend.
Many potential Double Bottom Reversals can
form along the way down, but until key
resistance is broken, a reversal cannot be
confirmed. To help clarify, we will look at the

key points in the formation and then walk
through an example.
1. Prior Trend: With any reversal pattern,
there must be an existing trend to reverse.
In the case of the Double Bottom Reversal,
a significant downtrend of several months
should be in place.
2. First Trough: The first trough should mark
the lowest point of the current trend. As
such, the first trough is fairly normal in
appearance and the downtrend remains
firmly in place.
3. Peak: After the first trough, an advance
takes place that typically ranges from 10 to
20%. Volume on the advance from the first
trough is usually inconsequential, but an
increase could signal early accumulation.

The high of the peak is sometimes rounded
or drawn out a bit from the hesitation to go
back down. This hesitation indicates that
demand is increasing, but still not strong
enough for a breakout.
4. Second Trough: The decline off the
reaction high usually occurs with low
volume and meets support from the
previous low. Support from the previous low
should be expected. Even after establishing
support, only the possibility of a Double
Bottom Reversal exists, and it still needs to
be confirmed. The time period between
troughs can vary from a few weeks to many
months, with the norm being 1-3 months.
While exact troughs are preferable, there is
some room to maneuver and usually a

trough within 3% of the previous is
considered valid.
5. Advance from Trough: Volume is more
important for the Double Bottom Reversal
than the double top. There should clear
evidence that volume and buying pressure
are accelerating during the advance off of
the second trough. An accelerated ascent,
perhaps marked with a gap or two, also
indicates a potential change in sentiment.
6. Resistance Break: Even after trading up to
resistance, the double top and trend
reversal are still not complete. Breaking
resistance from the highest point between
the troughs completes the Double Bottom
Reversal. This too should occur with an

increase in volume and/or an accelerated
ascent.
7. Resistance Turned Support: Broken
resistance becomes potential support and
there is sometimes a test of this newfound
support level with the first correction. Such
a test can offer a second chance to close a
short position or initiate a long.
8. Price Target: The distance from the
resistance breakout to trough lows can be
added on top of the resistance break to

estimate a target. This would imply that the
bigger the formation is, the larger the
potential advance.
Fig showing Double bottom
Interpretation- Under Double Bottom Pattern – we
enter in trade when price break the resistance
level around Rs.7000 so we buy Mid-Cap and can
have potential price rise in price of Rs.470(i.e.
difference between the second peak and support
break level. We can exit this trade around
Rs.7470, and book our measured profit.,
5. Ascending Triangle
The ascending triangle is a bullish formation
that usually forms during an uptrend as a
continuation pattern. There are instances
when ascending triangles form as reversal
patterns at the end of a downtrend, but they

are typically continuation patterns. Regardless
of where they form, ascending triangles are
bullish patterns that indicate accumulation.
Because of its shape, the pattern can also be
referred to as a right-angle triangle. Two or
more equal highs form a horizontal line at the
top. Two or more rising troughs form an
ascending trend line that converges on the
horizontal line as it rises. If both lines were
extended right, the ascending trend line could
act as the hypotenuse of a right triangle. If a
perpendicular line were drawn extending
down from the left end of the horizontal line, a
right triangle would form. Let's examine each
individual part of the pattern and then look at
an example.

1. Trend: In order to qualify as a continuation
pattern, an established trend should exist.
However, because the ascending triangle is
a bullish pattern, the length and duration of
the current trend is not as important as the
robustness of the formation, which is
paramount.
2. Top Horizontal Line: At least 2 reaction
highs are required to form the top horizontal
line. The highs do not have to be exact, but
they should be within reasonable
proximity of each other. There should be
some distance between the highs, and
a reaction low between them.
3. Lower Ascending Trend Line: At least two
reaction lows are required to form the lower
ascending trend line. These reaction lows

should be successively higher, and there
should be some distance between the
lows. If a more recent reaction low is equal
to or less than the previous reaction low,
then the ascending triangle is not valid.
4. Volume: As the pattern develops, volume
usually contracts. When the upside
breakout occurs, there should be an
expansion of volume to confirm the
breakout. While volume confirmation
is preferred, it is not always necessary.
5. Return to Breakout: A basic tenet of
technical analysis is that resistance turns
into support and vice versa. When the
horizontal resistance line of the ascending
triangle is broken, it turns into support.
Sometimes there will be a return to this

support level before the move begins in
earnest.
6. Target: Once the breakout has occurred,
the price projection is found by measuring
the widest distance of the pattern and
applying it to the resistance breakout.
Interpretation- Ascending Triangle is a
continuation pattern, so after breakout it will
continue with uptrend, the price projection is
found by measuring the widest distance of the

pattern and applying it to the resistance
breakout. We enter this trade around Rs.187
and can book profit Rs.60.
We exit this trade around Rs.247 where chart
shows Bearish Harami.
6. Descending Triangle

The descending triangle is a bearish formation
that usually forms during a downtrend as a
continuation pattern. There are instances
when descending triangles form as reversal
patterns at the end of an uptrend, but they are
typically continuation patterns. Regardless of
where they form, descending triangles
are bearish patterns that indicate distribution.
Because of its shape, the pattern can also be
referred to as a right-angle triangle. Two or
more comparable lows form a horizontal
line at the bottom. Two or more declining
peaks form a descending trend line above that
converges with the horizontal line as it
descends. If both lines were extended right,
the descending trend line could act as the
hypotenuse of a right triangle. If a

perpendicular line were drawn extending up
from the left end of the horizontal line, a right
triangle would form. Let's examine each
individual part of the pattern and then look at
an example.
However, because the descending triangle
is definitely a bearish pattern, the length
and duration of the current trend is not as
important. The robustness of the formation
is paramount.
2. Lower Horizontal Line: At least 2 reaction
lows are required to form the lower
horizontal line. The lows do not have to be
exact, but should be within reasonable
proximity of each other. There should be

some distance separating the lows and a
reaction high between them.
3. Upper Descending Trend Line: At least
two reaction highs are required to form the
upper descending trend line.
These reaction highs should be
successively lower and there should be
some distance between the highs. If a more
recent reaction high is equal to or greater
than the previous reaction high, then the
descending triangle is not valid.
4. Duration: The length of the pattern can
range from a few weeks to many months,
with the average pattern lasting from 1-3
months.
5. Volume: As the pattern
develops, volume usually contracts. When

the downside break occurs, there would
ideally be an expansion of volume for
confirmation. While volume confirmation is
preferred, it is not always necessary.
6. Return to Breakout: A basic tenet of
technical analysis is that
broken support turns into resistance and
visa versa. When the horizontal support line
of the descending triangle is broken, it turns
into resistance. Sometimes there will be a
return to this newfound resistance level
before the down move begins in earnest.
7. Target: Once the breakout has occurred,
the price projection is found by
measuring the widest distance of the
pattern and subtracting it from the
resistance breakout.

Figure showing Descending Triangle (Nifty
Weekly)
Interpretation -Descending Triangle is a
continuation pattern, so after breakout it will
continue with downtrend, the price projection
is found by measuring the widest distance of
the pattern and applying it to the resistance
breakout. We enter this trade around Rs.5350
and can book profit Rs.800.

We exit this trade around Rs.4500.
7. Symmetrical Triangle
The symmetrical triangle, which can also be
referred to as a coil, usually forms during a
trend as a continuation pattern. The pattern
contains at least two lower highs and two
higher lows. When these points are
connected, the lines converge as they are
extended and the symmetrical triangle takes
shape. You could also think of it as a

contracting wedge, wide at the beginning and
narrowing over time.
While there are instances when symmetrical
triangles mark important trend reversals, they
more often mark a continuation of the current
trend. Regardless of the nature of the pattern,
continuation or reversal, the direction of the
next major move can only be determined after
a valid breakout. We will examine each part of
the symmetrical triangle individually, and then
provide an example with Conseco.
The trend should be at least a few months
old and the symmetrical triangle marks a
consolidation period before continuing after
the breakout.

2. Four (4) Points: At least 2 points are
required to form a trend line and 2 trend
lines are required to form a symmetrical
triangle. Therefore, a minimum of 4 points
are required to begin considering a
formation as a symmetrical triangle. The
second high (2) should be lower than the
first (1) and the upper line should slope
down. The second low (2) should be higher
than the first (1) and the lower line should
slope up. Ideally, the pattern will form with 6
points (3 on each side) before a breakout
occurs.
3. Volume: As the symmetrical triangle
extends and the trading range contracts,
volume should start to diminish. This refers
to the quiet before the storm, or the

tightening consolidation before the
breakout.
4. Duration: The symmetrical triangle can
extend for a few weeks or many months. If
the pattern is less than 3 weeks, it is
usually considered a pennant. Typically, the
time duration is about 3 months.
5. Breakout Time Frame: The ideal breakout
point occurs 1/2 to 3/4 of the way through
the pattern's development or time-span.
The time-span of the pattern can be
measured from the apex (convergence of
upper and lower lines) back to the
beginning of the lower trend line (base). A
break before the 1/2 way point might be
premature and a break too close to the
apex may be insignificant. After all, as the

apex approaches, a breakout must occur
sometime.
6. Breakout Direction: The future direction of
the breakout can only be determined after
the break has occurred. Sounds obvious
enough, but attempting to guess the
direction of the breakout can be dangerous.
Even though a continuation pattern is
supposed to breakout in the direction of the
long-term trend, this is not always the case.
7. Breakout Confirmation: For a break to be
considered valid, it should be on a closing
basis. Some traders apply a price (3%
break) or time (sustained for 3 days) filter to
confirm validity. The breakout should occur
with an expansion in volume, especially on
upside breakouts.

8. Return to Apex: After the breakout (up or
down), the apex can turn into future
support or resistance. The price sometimes
returns to the apex or a support/resistance
level around the breakout before resuming
in the direction of the breakout.
9. Price Target: There are two methods to
estimate the extent of the move after the
breakout. First, the widest distance of the
symmetrical triangle can be measured and
applied to the breakout point. Second, a
trend line can be drawn parallel to the
pattern's trend line that slopes (up or down)
in the direction of the break. The extension
of this line will mark a potential breakout
target.

Interpretation- We will enter in trade when price
give breakout from triangle
And then we can remain on the trade until or
unless price touches the line number 1. We
can exit the market as soon as it touches that ,
So we will enter at Rs.341 and will exit around
Rs.220.

7. Technical Indicator And Oscillators
A technical indicator is a series of data points
that are derived by applying a formula to the
price data of a security. Price data includes
any combination of the open, high, low or

close over a period of time. Some indicators
may use only the closing prices, while others
incorporate volume and open interest into
their formulas. The price data is entered into
the formula and a data point is produced.
Technical Indicators broadly serve three
functions: to alert, to confirm and to predict.
Indicator acts as an alert to study price action,
sometimes it also gives a signal to watch for a
break of support. A large positive divergence
can act as an alert to watch for a resistance
breakout. Indicators can be used to confirm
other technical analysis tools. Some investors
and traders use indicators to predict the
direction of future prices.
Types of indicators

Indicators can broadly be divided into two
types “LEADING” and “LAGGING”.
Leading indicators
Leading indicators are designed to lead price
movements. Benefits of leading indicators are
early signaling for entry and exit, generating
more signals and allow more opportunities to
trade. They represent a form of price
momentum over a fixed look-back period,
which is the number of periods used to
calculate the indicator. Some of the wellmore
popular leading indicators include Commodity
Channel Index (CCI), Momentum, Relative
Strength Index (RSI), Stochastic Oscillator
and Williams %R.
Lagging Indicators

Lagging Indicators are the indicators that
would follow a trend rather then predicting a
reversal. A lagging indicator follows an event.
These indicators work well when prices move
in relatively long trends. They don’t warn you
of upcoming changes in prices, they simply
tell you what prices are doing (i.e., rising or
falling) so that you can invest accordingly.
These trend following indicators makes you
buy and sell late and, in exchange for missing
the early opportunities, they greatly reduce
your risk by keeping you on the right side of
the market.
Moving averages and the MACD are
examples of trend following, or “lagging,”
indicators.

1. Relative Strength Index
Developed J. Welles Wilder, the Relative
Strength Index (RSI) is a momentum oscillator
that measures the speed and change of price
movements. RSI oscillates between zero and
100. Traditionally, and according to Wilder,
RSI is considered overbought when above 70
and oversold when below 30. Signals can also
be generated by looking for divergences,
failure swings and centerline crossovers. RSI
can also be used to identify the general trend.

Application of RSI
RSI is a momentum oscillator generally used
in sideways or ranging markets where the
price moves between support and resistance
levels. It is one of the most useful technical
tool employed by many traders to measure
the velocity of directional price movement.
Overbought and Oversold
The RSI is a price-following oscillator that
ranges between 0 and 100. Generally,
technical analysts use 30% oversold and 70%
overbought lines to generate the buy and sell
signals.
• Go long when the indicator moves from
below to above the oversold line.
• Go short when the indicator moves from
above to below the overbought line.

Note here that the direction of crossing is
important; the indicator needs to first go past
the overbought/oversold lines and then cross
back through them.
Divergence
The other means of using RSI is to look at
divergences between price peaks/troughs and
indicator peaks/ troughs.
If the price makes a new higher peak but the
momentum does not make a corresponding
higher peak this indicates there is less power
driving the new price high? Since there is less
power or support for the new higher price a
reversal could be expected.
Similarly if the price makes a new lower
trough but the momentum indicator does not

make a corresponding lower trough, then it
can be surmised that the downward
movement is running out of strength and a
reversal upward could soon be expected.
Figure Showing RSI Indicator
Interpretation – RSI (Relative Strength Index) is a
leading indicator, it gives the intimation before
price takes actual moves, so as per this premise,

and we can go short when the indicator moves
from above to below the overbought line. And Go
long when the indicator moves from below to
above the oversold line.
On 5 November 2013, RSI moves from above to
below the overbought line which is and sell signal
and on the same day candlesticks showing
Bearish Harami Pattern which confirms the sell
signal.
1. We will enter the trade at price level Rs.1210 by
selling the stock and exit the market by buying it
around Rs.1030.
2.We will this buy this stock again on 16th Feb
2014 where RSI moves from below to above the
oversold line which is and buying signal and
candlesticks showing hammer pattern which is a
trend reversal patter so we buy this stock around
Rs.1110
And there no trend reversal so we can continue to
hold this position.

2. Moving Average Convergence/Divergence
(MACD)
MACD stands for Moving Average
Convergence / Divergence. It is a technical
analysis indicator created by Gerald Appel in
the late 1970s. The MACD indicator is
basically a refinement of the two moving
averages system and measures the distance
between the two moving average lines.
What is the MACD and how is it calculated?
The MACD does not completely fall into either
the trend-leading indicator or trend following
indicator; it is in fact a hybrid with elements of
both. The MACD comprises two lines, the fast
line and the slow or signal line. These are
easy to identify as the slow line will be the
smoother of the two.

Step1. Calculate a 12 period exponential
moving average of the close price.
moving average of the close price.
Step3. Subtract the 26 period moving average
from the 12 period moving average. This is
the fast MACD line.
moving average of the fast MACD line
calculated above. This is the slow or signal
MACD line.
Use of MACD lines
MACD generates signals from three main
sources:
• Moving average crossover
• Centreline crossover
• Divergence

Crossover of fast and slow lines
The MACD proves most effective in wide-
swinging trading markets. We will first
consider the use of the two MACD lines. The
signals to go long or short are provided by a
crossing of the fast and slow lines. The basic
MACD trading rules are as follows:
• Go long when the fast line crosses above
the slow line.
• Go short when the fast line crosses below
the slow line.
These signals are best when they occur some
distance above or below the reference line. If
the lines remain near the reference line for an
extended period as usually occurs in a

sideways market, then the signals should be
ignored.
Centre line crossover
A bullish centre line crossover occurs when
MACD moves above the zero line and into
positive territory. This is a clear indication that
momentum has changed from negative to
positive or from bearish to bullish. After a
positive divergence and bullish moving
average crossover, the centre line crossover
can act as a confirmation signal. Of the three
signals, moving average crossover are
probably the second most common signals. A
bearish centre line crossover occurs when
MACD moves below zero and into negative
territory. This is a clear indication that
momentum has changed from positive to
negative or from bullish to bearish. The centre

line crossover can act as an independent
signal, or confirm a prior signal such as a
moving average crossover or negative
divergence. Once MACD crosses
into negative territory, momentum, at least for
the short term, has turned bearish.

Figure Showing MACD (Sunpharma)
Interpretation- 25 July 2013 , RSI shows buying
signal as RSI moves from below to above the
oversold line which is and buying signal and
candlesticks showing Bullish Engulfing which is a
buying signal and In MACD fast line crosses
above the slow line which is an buying signal and
Volumes are high on this day, All the indicators
and Bullish Harami shows the buy signal so we
can enter in the market at this point around price
level of Rs. 475. And we will exit this market
around Rs.570 where candles shows bearish
engulfing, RSI moves from above to below the
overbought line, which is an sell signal , MACD
fast line crosses below the slow line which is an
sell signal. So as per these signals we can exit the
market.

3. Stochastic
The Stochastic indicator was developed by
George Lane. It compares where a security’s
price closes over a selected number of period.

The most commonly 14 periods stochastic is
used.
The Stochastic indicator is designated by
“%K” which is just a mathematical
representation of a ratio.
%K=(today’s Close)-(Lowest low over a
selected period)/
(Highest over a selected period)- (Lowest low
over a selected period)
For example, if today’s close is 50 and high
and low over last 14 days is 40 and 55
respectively then,
%K= 50-40/55-40
=0.666
Finally these values are multiplied by 100 to
change decimal value into percentage for
better calling.

This 0.666 signifies that today’s close was at
66.6% level relative to its trading range over
last 14 days.
A moving average of %K is then calculated
which is designated by %D. The most
commonly 3 period’s %D is used.
The stochastic indicator always moves
between zero and hundred, hence it is also
known as stochastic oscillator. The value of
stochastic oscillator near to zero signifi es that
today’s close is near to lowest price security
traded over a selected period and similarly
value of stochastic oscillator near to hundred
signifies that today’s close is near to highest
price security traded over a selected period.
Interpretation of Stochastic Indicator

Most popularly stochastic indicator is used in
three ways
a. To define overbought and oversold zone-
Generally stochastic oscillator reading above
80 is considered overbought and stochastic
oscillator reading below 20 is considered
oversold.
It basically suggests that
• One should book profit in buy side positions
and should avoid new buy side positions in an
overbought zone.
• One should book profit in sell side positions
and should avoid new sell side positions in an
oversold zone
b. Buy when %K line crosses % D line (dotted
line) to the upside in oversold zone and sell

when %K line crosses % D line(dotted line) to
the downside in overbought zone.
c. Look for Divergences- Divergences are of
two types i.e. positive and negative.
Positive Divergence-are formed when price
makes new low, but stochastic oscillator fails
to make new low. This divergence suggests a
reversal of trend from down to up.
Negative Divergence-are formed when price
makes new high, but stochastic oscillator fails
to make new high. This divergence suggests
a reversal of trend from up to down.

Figure Showing Stochastic (Nifty)
Interpretation- On Nov 1 2013 , Candlesticks
shows and spinning top which shows a sign of
trend reversal , RSI moves from above to below
the overbought line, which is an sell signal, and
Stochastic shows %K line crosses % D line to the
downside in overbought zone which is also an sell

signal so we enter the market at this point after
getting confirmation from the indicators which is
showing and sell signal so we will take short
position in nifty around Rs.6300, and will buy back
it around Rs.6000 where %K line crosses % D line
to the upside, So we will gain Rs.300 per share.
Same we will use for further crossover of %K and
%D.

4. Moving Averages
Moving averages
One of the most common and familiar trend-
following indicators is the moving averages.
They smooth a data series and make it easier
to spot trends, something that is especially
helpful in volatile markets. They also form the
building blocks for many other technical
indicators and
overlays.

The two most popular types of moving
averages are the Simple Moving Average
(SMA) and the Exponential Moving Average
(EMA). They are described in more detail
below.
4.1. Simple moving average (SMA)
A simple moving average is formed by
computing the average (mean) price of a
security over a specified number of periods. It
places equal value on every price for the time
span selected. While it is possible to create
moving averages from the Open, the High,
and the Low data points, most moving
averages are created using the closing price.
For example: a

5-day simple moving average is calculated by
adding the closing prices for the last 5 days
and dividing the total by 5.
4.2 Exponential moving average (EMA)
Exponential moving average also called as
exponentially weighted moving average is
calculated by applying more weight to recent
prices relative to older prices. In order to
reduce the lag in simple moving averages,
technicians often use exponential moving
averages. The weighting
applied to the most recent price depends on
the specified period of the moving average.
The 82 shorter the EMA’s period, weight is

applied to the most recent price. For
example: a 10-period
exponential moving average weighs the most
recent price 18.18% while a 20-period EMA
weighs the most recent price 9.52%. As we’ll
see, the calculating and EMA is much harder
than calculating an SMA. The important thing
to remember is that the exponential moving
average puts more weight on recent prices.
As such, it will react quicker to recent price
changes than a simple moving average.
Exponential moving average calculation
The formula for an exponential moving
average is:
EMA (current) = ((Price (current) - EMA
(prev)) x (Multiplier) + EMA (prev)

For a percentage-based EMA, “Multiplier” is
equal to the EMA’s specified percentage. For
a period-based EMA, “Multiplier” is equal to 2
/ (1 + N) where N is the specified number of
periods.
Note that, in exponential moving average,
every previous closing price in the data set is
used in the calculation. The impact of the
older data never disappears though it
diminishes over a period of time. This is true
regardless of the EMA’s specified period. The
effects of older data diminish rapidly for
shorter EMA’s than for longer ones but, again,
they never completely
Disappear.

Interpretation- Using Moving Averages, we can
continuously enter and exit the market as moving
averages gives crossover to prices.
1. First long position is at Rs.5830 where price
moves above the 15-days moving average and we
will exit the market around Rs.6190 when price
moves below the15-days moving average.
Profit=6190(Sell)- 5830(Buy)=Rs.360

2 Second long position is at Rs.6105 where price
Profit=6220(Sell)-6105(Buy) =Rs.115
3. Third long position is at Rs.6220 where price
Profit=6270(Sell)-6220(Buy) =Rs.50
4. Fourth long position is at Rs.6185 where
price moves above the 15-days moving
average and till now there is no sign of
moving average crossover with price so we
can continue to carry the position.

8. Fibonacci Retracements
Overview
Leonardo Fibonacci was a mathematician
who was born in Italy around the year 1170. It
is believed that Mr. Fibonacci discovered the
relationship of what are now referred to as
Fibonacci numbers while studying the Great
Pyramid of Gizeh in Egypt.

Fibonacci numbers are a sequence of
numbers in which each successive number is
the sum of the two previous numbers:
1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 610,
etc.
These numbers possess an intriguing number
of interrelationships, such as the fact that any
given number is approximately 1.618 times
the preceding number and any given number
is approximately 0.618 times the following
number. The booklet Understanding Fibonacci
Numbers by Edward Dobson contains a good
discussion of these interrelationships.
Retracements
Fibonacci Retracements are displayed by first
drawing a trend line between two extreme
points, for example, a trough and opposing

peak. A series of nine horizontal lines are
drawn intersecting the trend line at the
Fibonacci levels of 0.0%, 23.6%, 38.2%, 50%,
61.8%, 100%, 161.8%, 261.8%, and 423.6%.
(Some of the lines will probably not be visible
because they will be off the scale.)
After a significant price move (either up or
down), prices will often retrace a
Significant portion (if not all) of the original
move. As prices retrace, support and

resistance levels often occur at or near the
Fibonacci Retracement levels.
Figure Showing-Fibonacci Retracement Levels
Interpretations – Fibonacci Retracement tools help
to identify the support and resistance level in the
stock by using golden ratios. So as we can see inn
above chart
strong resistance level are at 23.6% because price
has came down 2 times after reaching 23.6%
levels and strong Support levels are at around
50.0% levels because price has moved above 2
times after reaching 50.0% of price. These
percentage levels are exactly the same as
Fibonacci golden ratios.
9. Elliot Waves Theory
Overview

The Elliott Wave Theory is named after Ralph
Nelson Elliott. Inspired by the Dow Theory
and by observations found throughout nature,
Elliott concluded that themovement of the
stock market could be predicted by observing
and identifying a repetitive pattern of waves.
In fact, Elliott believed that all of man's
activities, not just the stock market, were
influenced by these identifiable series of
waves.
With the help of C. J. Collins, Elliott's ideas
received the attention of Wall Street in a
series of articles published in Financial World
magazine in 1939. During the 1950s and
1960s (after Elliott's passing), his work was
advanced by Hamilton Bolton. In 1960, Bolton
wrote Elliott Wave Principle--A Critical
Appraisal. This was the first significant work

since Elliott's passing. In 1978, Robert
Prechter and A. J. Frost collaborated to write
the book Elliott Wave Principle.
Interpretation
The underlying forces behind the Elliott Wave
Theory are of building up and
tearing down. The basic concepts of the Elliott
Wave Theory are listed below.
1. Action is followed by reaction.
There are five waves in the direction of the
main trend followed by three
corrective waves (a "5-3" move).
2. A 5-3 move completes a cycle. This 5-3
move then becomes two

subdivisions of the next higher 5-3 wave.
3. The underlying 5-3 pattern remains
constant, though the time span of each
may vary.
4.The basic pattern is made up of eight waves
(five up and three down) which are labeled 1,
2, 3, 4, 5, a, b, and c on the following chart.
Waves 1, 3, and 5 are called impulse waves.
Waves 2 and 4 are called corrective waves.
Waves a, b, and c correct the main trend
made by waves 1 through 5. The main trend

is established by waves 1 through 5 and can
be either up or down. Waves a, b, and c
always move in the opposite direction of
waves 1 through 5.
Elliott Wave Theory holds that each wave
within a wave count contains a
complete 5-3 wave count of a smaller cycle.
The longest wave count is called the Grand
Supercycle. Grand Supercycle waves are
comprised of Supercycles, and Supercycles
are comprised of Cycles. This process
continues into Primary, Intermediate, Minute,
Minuette, and Sub-minuette waves.
The following chart shows how 5-3 waves are
comprised of smaller cycles.

This chart contains the identical pattern
shown in the preceding chart (now
displayed using dotted lines), but the smaller
cycles are also displayed. For
example, you can see that impulse wave
labeled 1 in the preceding chart is

comprised of five smaller waves.
Fibonacci numbers provide the mathematical
foundation for the Elliott Wave
Theory. Briefly, the Fibonacci number
sequence is made by simply starting at 1 and
adding the previous number to arrive at the
new number (i.e., 0+1=1, 1+1=2,2+1=3,
3+2=5, 5+3=8, 8+5=13, etc). Each of the
cycles that Elliott defined are comprised of a
total wave count that falls within the Fibonacci
number sequence.

Bibliography
Books
1. NCFM- Technical Analysis Module
2. Technical Analysis Of Stock Trend
Strength-9th Edition (John Magee)
3. Tehnical Analysis for Financial Market
Technician
4. Japanese Candlesticks Charting (Steve
Nison)
5. Technical Analysis (Martin J.Pring)

6. Technical Analysis from A to Z ( Steven B.
Achelis)
7.The Secret Code of Japanese Candlesticks
- Felipe Tudela
8.Trend Forecasting with Technical Analysis
Website
1. www.chartink.com
2. www.bigpaisa.com
3. www.Moneycontrol.com
4. www.stockchats.com
5. www.nseindia.com
6. www.investing.com
7. www.icharts.com

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