SlideShare a Scribd company logo
Technical Analysis
Introduction






Technical analysis is the attempt to forecast
stock prices on the basis of market-derived data.
Technicians (also known as quantitative analysts
or chartists) usually look at price, volume and
psychological indicators over time.
They are looking for trends and patterns in the
data that indicate future price movements.
Agenda




Dow Theory
Elliot Wave
Charting Stocks








Bar Charts and Japanese Candlestick Charts
Point and Figure Charts

Major Chart Patterns
Price-based Indicators
Volume-based Indicators
Typical Stock Market Cycle
Dow Theory






This theory was first stated by Charles Dow in a
series of columns in the WSJ between 1900 and
1902.
Dow (and later Hamilton and Rhea) believed that
market trends forecast trends in the economy.
A change in the trend of the DJIA must be
confirmed by a trend change in the DJTA in
order to generate a valid signal.
Dow Theory Trends (1)


Primary Trend




Secondary Trend




Called “the tide” by Dow, this is the trend that
defines the long-term direction (up to several years).
Others have called this a “secular” bull or bear
market.
Called “the waves” by Dow, this is shorter-term
departures from the primary trend (weeks to months)

Day to day fluctuations


Not significant in Dow Theory
Dow Theory Trends (2)
Does Dow Theory Work?




According to Martin Pring, if you had invested
$44 in 1897 and followed all buy and sell
signals, by 1981 you would have accumulated
about $18,000.
If you had simply invested $44 and held that
portfolio, by 1981 you would have accumulated
about $960.
Elliot Wave Principle (1)






R.N. Elliot formulated this idea in a series of articles in
Financial World in 1939.
Elliot believed that the market has a rhythmic regularity
that can be used to predict future prices.
The Elliot Wave Principle is based on a repeating 8-wave
cycle, and each cycle is made up of similar shorter-term
cycles (“Big fleas have little fleas upon their backs to
bite 'em - little fleas have smaller fleas and so on ad
infinitem”).
Elliot Wave adherents also make extensive use of the
Fibonacci series.
The Elliot Wave Principle (2)
5
B
A
C

3
4

1
2
Charting the Market






Chartists use bar charts, candlestick, or point and
figure charts to look for patterns which may
indicate future price movements.
They also analyze volume and other
psychological indicators (breadth, % of bulls vs
% of bears, put/call ratio, etc.).
Strict chartists don’t care about fundamentals at
all.
Drawing Bar (OHLC) Charts


Each bar is composed of 4
elements:









Open
High
Low
Close

Note that the candlestick body
is empty (white) on up days,
and filled (some color) on
down days
Note: You should print the
example charts (next two
slides) to see them more
clearly

High

High
Close

Open

Open

Close
Low

Standard
Bar Chart

Low

Japanese
Candlestick

Standard
Bar Chart

Japanese
Candlestick
Types of Charts: Bar Charts


This is a bar (open, high, low, close or OHLC) chart of
AMAT from early July to mid October 2001.
Types of Charts: Japanese Candlesticks


This is a Japanese Candlestick (open, high, low, close)
chart of AMAT from early July to mid October 2001
Drawing Point & Figure Charts









Point & Figure charts are
independent of time.
An X represents an up move.
An O represents a down
move.
The Box Size is the number of
points needed to make an X or
O.
The Reversal is the price
change needed to recognize a
change in direction.
Typically, P&F charts use a 1point box and a 3-point
reversal.

X
X
X X O
X X O
X O O
X O O
X
Chart Types: Point & Figure Charts


This is a Point & Figure chart of AMAT from early July
to mid October 2001.
Basic Technical Tools






Trend Lines
Moving Averages
Price Patterns
Indicators
Cycles
Trend Lines


There are three basic
kinds of trends:






An Up trend where prices
are generally increasing.
A Down trend where
prices are generally
decreasing.
A Trading Range.
Support & Resistance








Support and resistance lines
indicate likely ends of trends.
Resistance results from the
inability to surpass prior
highs.
Support results from the
inability to break below to
prior lows.
What was support becomes
resistance, and vice-versa.

Breakout

Support

Resistance
Simple Moving Averages





A moving average is simply
the average price (usually the
closing price) over the last N
periods.
They are used to smooth out
fluctuations of less than N
periods.
This chart shows MSFT with
a 10-day moving average.
Note how the moving average
shows much less volatility
than the daily stock price.

MSFT Daily Prices with 10-day MA
9/23/93 to 9/21/94
60

55

50

Price



45

40

35

30
1

21

41

61

81

101

121
Date

141

161

181

201

221

241
Price Patterns






Technicians look for many patterns in the
historical time series of prices.
These patterns are reputed to provide
information regarding the size and timing of
subsequent price moves.
But don’t forget that the EMH says these
patterns are illusions, and have no real meaning.
In fact, they can be seen in a randomly generated
price series.
Head and Shoulders




This formation is
characterized by two
small peaks on either
side of a larger peak.
This is a reversal pattern,
meaning that it signifies
a change in the trend.

H&S Top
Head

Right Shoulder

Left Shoulder

Neckline

H&S Bottom
Neckline

Left Shoulder

Right Shoulder

Head
Head & Shoulders Example

Sell Signal

Minimum Target Price
Based on measurement rule
Double Tops and Bottoms




These formations are
similar to the H&S
formations, but there is
no head.
These are reversal
patterns with the same
measuring implications
as the H&S.

Double Top

Target
Target

Double Bottom
Double Bottom Example
Triangles



Triangles are
continuation formations.
Three flavors:






Ascending

Ascending
Descending
Symmetrical

Typically, triangles
should break out about
half to three-quarters of
the way through the
formation.

Symmetrical
Symmetrical

Descending
Rounded Tops & Bottoms


Rounding formations are
characterized by a slow
reversal of trend.

Rounding
Bottom

Rounding Top
Rounded Bottom Chart Example
Broadening Formations




These formations are like
reverse triangles.
These formations usually
signal a reversal of the
trend.

Broadening Bottoms

Broadening Tops
DJIA Oct 2000 to Oct 2001 Example

What could you have known,
and when could you have known it?
DJIA Oct 2000 to Oct 2001 Example

Nov to Mar
Trading range

Descending
triangles

Double bottom

Gap, should get
filled
Technical Indicators



There are, literally, hundreds of technical indicators used
to generate buy and sell signals.
We will look at just a few that I use:







Moving Average Convergence/Divergence (MACD)
Relative Strength Index (RSI)
On Balance Volume
Bollinger Bands

For information on other indicators see my Investments
Class Links page under the heading “Technical Analysis
Links.” (
http://clem.mscd.edu/~mayest/FIN3600/FIN3600_Links.htm)
MACD







MACD was developed by Gerald Appel as a way to keep
track of a moving average crossover system.
Appel defined MACD as the difference between a 12day and 26-day moving average. A 9-day moving
average of this difference is used to generate signals.
When this signal line goes from negative to positive, a
buy signal is generated.
When the signal line goes from positive to negative, a
sell signal is generated.
MACD is best used in choppy (trendless) markets, and is
subject to whipsaws (in and out rapidly with little or no
profit).
MACD Example Chart
Relative Strength Index (RSI)







RSI was developed by Welles Wilder as an oscillator to
gauge overbought/oversold levels.
RSI is a rescaled measure of the ratio of average price
changes on up days to average price changes on down
days.
The most important thing to understand about RSI is that
a level above 70 indicates a stock is overbought, and a
level below 30 indicates that it is oversold (it can range
from 0 to 100).
Also, realize that stocks can remain overbought or
oversold for long periods of time, so RSI alone isn’t
always a great timing tool.
RSI Example Chart
Overbought

Oversold
On Balance Volume








On Balance Volume was developed by Joseph Granville,
one of the most famous technicians of the 1960’s and
1970’s.
OBV is calculated by adding volume on up days, and
subtracting volume on down days. A running total is
kept.
Granville believed that “volume leads price.”
To use OBV, you generally look for OBV to show a
change in trend (a divergence from the price trend).
If the stock is in an uptrend, but OBV turns down, that is
a signal that the price trend may soon reverse.
OBV Example Chart

Divergence, OBV failed
OBV confirms
trend change
but doesn’t
lead
Bollinger Bands








Bollinger bands were created by John Bollinger (former FNN
technical analyst, and regular guest on CNBC).
Bollinger Bands are based on a moving average of the closing price.
They are two standard deviations above and below the moving
average.
A buy signal is given when the stock price closes below the lower
band, and a sell signal is given when the stock price closes above the
upper band.
When the bands contract, that is a signal that a big move is coming,
but it is impossible to say if it will be up or down.
In my experience, the buy signals are far more reliable than the sell
signals.
Bollinger Bands Example Chart
Sell signal

Buy signals
Sometimes, the buy
signals just keep coming and
you can go broke!
Too Many Others To List








As noted, there are literally hundreds of indicators and thousands of
trading systems.
A whole semester could easily be spent on just a handful of these.
To close, just note that there is nothing so crazy that somebody
doesn’t use it to trade.
For example, many people use astrology, geometry (Gann angles),
neural networks, chaos theory, etc.
There’s no doubt that each of these (and others) would have made
you lots of money at one time or another. The real question is can
they do it consistently?
As the carneys used to say, “You pays your money, and you takes
your chances.”
Typical Stock Market Cycle
Stock
Price
Declining
Trend
Channel

Peak
Flat Trend Channel
Sell Point
Rising Trend
Channel Declining
Buy Point
Trend

Trough

Channel

Trough

Buy Point
Thank You

More Related Content

PPT
Technicalanalysisppt 120809084534-phpapp02
PPT
Technical analysis
PPTX
Japanese Candlestick
PPTX
Technical analysis part ii
PPT
Technical analysis ppt
PPTX
Dow theory ppt
PPT
Dow theory
PPT
Technical Analysis Rudramurthy
Technicalanalysisppt 120809084534-phpapp02
Technical analysis
Japanese Candlestick
Technical analysis part ii
Technical analysis ppt
Dow theory ppt
Dow theory
Technical Analysis Rudramurthy

What's hot (13)

PPT
Technical analysis
PPT
Technical Analysis
PPT
Investor Education
PPTX
SAPM lecture 6 Technical Analysis
PPTX
Dow Theory and Elliott Wave Theory
PPT
Technical
PDF
Fm1 unit2 conti..
PDF
Dow Theory
PDF
Technical Analysis
PDF
Technical indicators
PDF
PPTX
Technical analysis finance
PPTX
Technical analysis
Technical analysis
Technical Analysis
Investor Education
SAPM lecture 6 Technical Analysis
Dow Theory and Elliott Wave Theory
Technical
Fm1 unit2 conti..
Dow Theory
Technical Analysis
Technical indicators
Technical analysis finance
Technical analysis
Ad

Similar to Technicalanalysis 111216235133-phpapp01 (16)

PPT
Technical
PPT
Technical Analysis By Pantej
PPT
full Technical Analysis is explained.ppt
PPT
Technical Analysis and stock analysis...
PDF
Technical analysis
PPT
Technical anaylsis (day_8)
PDF
2-3-technical-analysis-technical-indicators.pdf
PDF
A fundamental study on Technical Analysis
PPTX
SAPM-33.pptx
PPTX
Technical analysis
PPT
Introduction To Technical Analysis
PPT
Technical Analysis
PPT
Technical Analysis Of Stock Market
PPTX
Technical vs Fundamental analysis of financial statements
PDF
How to Identify and Draw Support and Resistance Levels on Any Chart
PPTX
Technical analysis
Technical
Technical Analysis By Pantej
full Technical Analysis is explained.ppt
Technical Analysis and stock analysis...
Technical analysis
Technical anaylsis (day_8)
2-3-technical-analysis-technical-indicators.pdf
A fundamental study on Technical Analysis
SAPM-33.pptx
Technical analysis
Introduction To Technical Analysis
Technical Analysis
Technical Analysis Of Stock Market
Technical vs Fundamental analysis of financial statements
How to Identify and Draw Support and Resistance Levels on Any Chart
Technical analysis
Ad

Recently uploaded (20)

PDF
Chapter 9 IFRS Ed-Ed4_2020 Intermediate Accounting
PDF
discourse-2025-02-building-a-trillion-dollar-dream.pdf
PPTX
Introduction to Customs (June 2025) v1.pptx
PDF
Predicting Customer Bankruptcy Using Machine Learning Algorithm research pape...
PPTX
EABDM Slides for Indifference curve.pptx
PPTX
Unilever_Financial_Analysis_Presentation.pptx
PPTX
social-studies-subject-for-high-school-globalization.pptx
PPTX
Introduction to Managemeng Chapter 1..pptx
PPTX
4.5.1 Financial Governance_Appropriation & Finance.pptx
PDF
Q2 2025 :Lundin Gold Conference Call Presentation_Final.pdf
PPTX
The discussion on the Economic in transportation .pptx
PDF
illuminati Uganda brotherhood agent in Kampala call 0756664682,0782561496
PPTX
Session 3. Time Value of Money.pptx_finance
PDF
Bitcoin Layer August 2025: Power Laws of Bitcoin: The Core and Bubbles
PPTX
Globalization-of-Religion. Contemporary World
PDF
NAPF_RESPONSE_TO_THE_PENSIONS_COMMISSION_8 _2_.pdf
PDF
ECONOMICS AND ENTREPRENEURS LESSONSS AND
PDF
Dialnet-DynamicHedgingOfPricesOfNaturalGasInMexico-8788871.pdf
PPTX
Introduction to Essence of Indian traditional knowledge.pptx
PDF
Why Ignoring Passive Income for Retirees Could Cost You Big.pdf
Chapter 9 IFRS Ed-Ed4_2020 Intermediate Accounting
discourse-2025-02-building-a-trillion-dollar-dream.pdf
Introduction to Customs (June 2025) v1.pptx
Predicting Customer Bankruptcy Using Machine Learning Algorithm research pape...
EABDM Slides for Indifference curve.pptx
Unilever_Financial_Analysis_Presentation.pptx
social-studies-subject-for-high-school-globalization.pptx
Introduction to Managemeng Chapter 1..pptx
4.5.1 Financial Governance_Appropriation & Finance.pptx
Q2 2025 :Lundin Gold Conference Call Presentation_Final.pdf
The discussion on the Economic in transportation .pptx
illuminati Uganda brotherhood agent in Kampala call 0756664682,0782561496
Session 3. Time Value of Money.pptx_finance
Bitcoin Layer August 2025: Power Laws of Bitcoin: The Core and Bubbles
Globalization-of-Religion. Contemporary World
NAPF_RESPONSE_TO_THE_PENSIONS_COMMISSION_8 _2_.pdf
ECONOMICS AND ENTREPRENEURS LESSONSS AND
Dialnet-DynamicHedgingOfPricesOfNaturalGasInMexico-8788871.pdf
Introduction to Essence of Indian traditional knowledge.pptx
Why Ignoring Passive Income for Retirees Could Cost You Big.pdf

Technicalanalysis 111216235133-phpapp01

  • 2. Introduction    Technical analysis is the attempt to forecast stock prices on the basis of market-derived data. Technicians (also known as quantitative analysts or chartists) usually look at price, volume and psychological indicators over time. They are looking for trends and patterns in the data that indicate future price movements.
  • 3. Agenda    Dow Theory Elliot Wave Charting Stocks       Bar Charts and Japanese Candlestick Charts Point and Figure Charts Major Chart Patterns Price-based Indicators Volume-based Indicators Typical Stock Market Cycle
  • 4. Dow Theory    This theory was first stated by Charles Dow in a series of columns in the WSJ between 1900 and 1902. Dow (and later Hamilton and Rhea) believed that market trends forecast trends in the economy. A change in the trend of the DJIA must be confirmed by a trend change in the DJTA in order to generate a valid signal.
  • 5. Dow Theory Trends (1)  Primary Trend   Secondary Trend   Called “the tide” by Dow, this is the trend that defines the long-term direction (up to several years). Others have called this a “secular” bull or bear market. Called “the waves” by Dow, this is shorter-term departures from the primary trend (weeks to months) Day to day fluctuations  Not significant in Dow Theory
  • 7. Does Dow Theory Work?   According to Martin Pring, if you had invested $44 in 1897 and followed all buy and sell signals, by 1981 you would have accumulated about $18,000. If you had simply invested $44 and held that portfolio, by 1981 you would have accumulated about $960.
  • 8. Elliot Wave Principle (1)     R.N. Elliot formulated this idea in a series of articles in Financial World in 1939. Elliot believed that the market has a rhythmic regularity that can be used to predict future prices. The Elliot Wave Principle is based on a repeating 8-wave cycle, and each cycle is made up of similar shorter-term cycles (“Big fleas have little fleas upon their backs to bite 'em - little fleas have smaller fleas and so on ad infinitem”). Elliot Wave adherents also make extensive use of the Fibonacci series.
  • 9. The Elliot Wave Principle (2) 5 B A C 3 4 1 2
  • 10. Charting the Market    Chartists use bar charts, candlestick, or point and figure charts to look for patterns which may indicate future price movements. They also analyze volume and other psychological indicators (breadth, % of bulls vs % of bears, put/call ratio, etc.). Strict chartists don’t care about fundamentals at all.
  • 11. Drawing Bar (OHLC) Charts  Each bar is composed of 4 elements:       Open High Low Close Note that the candlestick body is empty (white) on up days, and filled (some color) on down days Note: You should print the example charts (next two slides) to see them more clearly High High Close Open Open Close Low Standard Bar Chart Low Japanese Candlestick Standard Bar Chart Japanese Candlestick
  • 12. Types of Charts: Bar Charts  This is a bar (open, high, low, close or OHLC) chart of AMAT from early July to mid October 2001.
  • 13. Types of Charts: Japanese Candlesticks  This is a Japanese Candlestick (open, high, low, close) chart of AMAT from early July to mid October 2001
  • 14. Drawing Point & Figure Charts       Point & Figure charts are independent of time. An X represents an up move. An O represents a down move. The Box Size is the number of points needed to make an X or O. The Reversal is the price change needed to recognize a change in direction. Typically, P&F charts use a 1point box and a 3-point reversal. X X X X O X X O X O O X O O X
  • 15. Chart Types: Point & Figure Charts  This is a Point & Figure chart of AMAT from early July to mid October 2001.
  • 16. Basic Technical Tools      Trend Lines Moving Averages Price Patterns Indicators Cycles
  • 17. Trend Lines  There are three basic kinds of trends:    An Up trend where prices are generally increasing. A Down trend where prices are generally decreasing. A Trading Range.
  • 18. Support & Resistance     Support and resistance lines indicate likely ends of trends. Resistance results from the inability to surpass prior highs. Support results from the inability to break below to prior lows. What was support becomes resistance, and vice-versa. Breakout Support Resistance
  • 19. Simple Moving Averages   A moving average is simply the average price (usually the closing price) over the last N periods. They are used to smooth out fluctuations of less than N periods. This chart shows MSFT with a 10-day moving average. Note how the moving average shows much less volatility than the daily stock price. MSFT Daily Prices with 10-day MA 9/23/93 to 9/21/94 60 55 50 Price  45 40 35 30 1 21 41 61 81 101 121 Date 141 161 181 201 221 241
  • 20. Price Patterns    Technicians look for many patterns in the historical time series of prices. These patterns are reputed to provide information regarding the size and timing of subsequent price moves. But don’t forget that the EMH says these patterns are illusions, and have no real meaning. In fact, they can be seen in a randomly generated price series.
  • 21. Head and Shoulders   This formation is characterized by two small peaks on either side of a larger peak. This is a reversal pattern, meaning that it signifies a change in the trend. H&S Top Head Right Shoulder Left Shoulder Neckline H&S Bottom Neckline Left Shoulder Right Shoulder Head
  • 22. Head & Shoulders Example Sell Signal Minimum Target Price Based on measurement rule
  • 23. Double Tops and Bottoms   These formations are similar to the H&S formations, but there is no head. These are reversal patterns with the same measuring implications as the H&S. Double Top Target Target Double Bottom
  • 25. Triangles   Triangles are continuation formations. Three flavors:     Ascending Ascending Descending Symmetrical Typically, triangles should break out about half to three-quarters of the way through the formation. Symmetrical Symmetrical Descending
  • 26. Rounded Tops & Bottoms  Rounding formations are characterized by a slow reversal of trend. Rounding Bottom Rounding Top
  • 28. Broadening Formations   These formations are like reverse triangles. These formations usually signal a reversal of the trend. Broadening Bottoms Broadening Tops
  • 29. DJIA Oct 2000 to Oct 2001 Example What could you have known, and when could you have known it?
  • 30. DJIA Oct 2000 to Oct 2001 Example Nov to Mar Trading range Descending triangles Double bottom Gap, should get filled
  • 31. Technical Indicators   There are, literally, hundreds of technical indicators used to generate buy and sell signals. We will look at just a few that I use:      Moving Average Convergence/Divergence (MACD) Relative Strength Index (RSI) On Balance Volume Bollinger Bands For information on other indicators see my Investments Class Links page under the heading “Technical Analysis Links.” ( http://clem.mscd.edu/~mayest/FIN3600/FIN3600_Links.htm)
  • 32. MACD      MACD was developed by Gerald Appel as a way to keep track of a moving average crossover system. Appel defined MACD as the difference between a 12day and 26-day moving average. A 9-day moving average of this difference is used to generate signals. When this signal line goes from negative to positive, a buy signal is generated. When the signal line goes from positive to negative, a sell signal is generated. MACD is best used in choppy (trendless) markets, and is subject to whipsaws (in and out rapidly with little or no profit).
  • 34. Relative Strength Index (RSI)     RSI was developed by Welles Wilder as an oscillator to gauge overbought/oversold levels. RSI is a rescaled measure of the ratio of average price changes on up days to average price changes on down days. The most important thing to understand about RSI is that a level above 70 indicates a stock is overbought, and a level below 30 indicates that it is oversold (it can range from 0 to 100). Also, realize that stocks can remain overbought or oversold for long periods of time, so RSI alone isn’t always a great timing tool.
  • 36. On Balance Volume      On Balance Volume was developed by Joseph Granville, one of the most famous technicians of the 1960’s and 1970’s. OBV is calculated by adding volume on up days, and subtracting volume on down days. A running total is kept. Granville believed that “volume leads price.” To use OBV, you generally look for OBV to show a change in trend (a divergence from the price trend). If the stock is in an uptrend, but OBV turns down, that is a signal that the price trend may soon reverse.
  • 37. OBV Example Chart Divergence, OBV failed OBV confirms trend change but doesn’t lead
  • 38. Bollinger Bands       Bollinger bands were created by John Bollinger (former FNN technical analyst, and regular guest on CNBC). Bollinger Bands are based on a moving average of the closing price. They are two standard deviations above and below the moving average. A buy signal is given when the stock price closes below the lower band, and a sell signal is given when the stock price closes above the upper band. When the bands contract, that is a signal that a big move is coming, but it is impossible to say if it will be up or down. In my experience, the buy signals are far more reliable than the sell signals.
  • 39. Bollinger Bands Example Chart Sell signal Buy signals Sometimes, the buy signals just keep coming and you can go broke!
  • 40. Too Many Others To List       As noted, there are literally hundreds of indicators and thousands of trading systems. A whole semester could easily be spent on just a handful of these. To close, just note that there is nothing so crazy that somebody doesn’t use it to trade. For example, many people use astrology, geometry (Gann angles), neural networks, chaos theory, etc. There’s no doubt that each of these (and others) would have made you lots of money at one time or another. The real question is can they do it consistently? As the carneys used to say, “You pays your money, and you takes your chances.”
  • 41. Typical Stock Market Cycle Stock Price Declining Trend Channel Peak Flat Trend Channel Sell Point Rising Trend Channel Declining Buy Point Trend Trough Channel Trough Buy Point

Editor's Notes

  • #31: This chart was created on 10 Oct. 2001 as I was preparing these notes. The October 2000 to October 2001 time period has been rich in technical formations. The formations shown are: A trading range from November 2000 to March 2001. The bottom of a trading range acts as a support level, and the top as resistance. We look for an eventual breakout of the range. In this case, it broke out to the downside signifying a trading opportunity on the short side of the market. A double bottom formation in mid-March to early April. This formation gives a buy signal when the second bottom is higher (or equal to) the previous bottom. In this case that was in early April, though it takes a few days to be sure of the signal. A second buy signal was generated when the resistance level from the previous trading range was broken. A Descending Triangle in May and June. This formation, which I find to be very reliable, is expected to break out to the downside. It did. Another Descending Triangle from mid-July to late August. Again, it would be expected to breakout to the downside. It did, even before the September 11 tragedy. The last formation shown was the gap down after the 11 Sept terrorist attacks. As noted on the chart, gaps are usually “filled” (that is, prices eventually should move back to the level before the gap). After a gap is filled (or, on a candlestick chart they say, “the window was closed”), prices will often reverse for at least a short time. The level at which the gap began becomes a resistance level. In fact, the gap was closed one month later on October 11. On October 12, the index declined by 66.29 points.