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Criado por dncnphilips1986
mais de 10 anos atrás
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Part OneDefining Technical Analysis
The study of securities price behaviour and how to exploit them to make money and avoid loss.
ACTIVE - NON SAVING VEHICLE
TRADER Use Technical Analysis Holds securities for minutes to months Seeks income from commissions
INVESTOR Use Technical Analysis Holds securities for months to years. Seeks income from dividends
VS
Side Note: Blue Widget StockNiche word for stocks
TA - has the tools to help identify market situations
Side Note: Risk management is important as to have exit plan is just as.
Bear/ish market is going down
Bull/ish Market is going up
Market Trends can last for a long period of time. Knowing the trend is very important
Side Note: If you are unable to see the trend extend the chart to a month or even year.
When prices rise this is called uptrend
When prices fall this is called downtrend
Fundamental Analysis: The study of finding true price of a security.
Fundamental Analysis is compatible with Technical Analysis.
Securities move in trends most of the time. Trends can be identified by patterns seen repeatable and through support and resistance trend-lines Primary Trends can last years which are punctuated by Secondary movements that may last months or weeks. This movement is usually in the opposite direction of the primary trend. Called retracements
Two Types of trends, up and down
pg15
Breakout: When a price breaks a support or resistance line.They are a powerful instrument, but not always correct
Charting: Reading into Supply and Demand
Market Timing: Reading into timing of the markets. Sentiment indicators and Calender Effects
Trend Following: First thing you look for in a chart
Discovering the essence of Market Movement
Technical Analysis focuses more on the price than fundamental analysis
The market or know as "the crowd" sets the markets prices
The market may be rational or irrational but the market is always right
securities are subjected to standard laws of supply and demand
Pg: 23
Price Discovery can take timeThe process where by supplies and buyers find the right price which are both acceptable to both parties
Laws of supply and Demand: States that demand for the product sets the price.Higher and higher prices demand falls off.Higher demand means bigger supply, means lowering of the price
Momentum Investing
Reversion to the mean or Mean Reversion: Is the return to the normal price range.
Deviation
Chapter One
Chapter Two
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