Basics of Technical Analysis of Stock
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Basics of Technical Analysis of Stock
Day 1: Introduction To Technical Analysis
Introduction to Technical Analysis
Key differences between fundamental analysis and technical analysis-What is undamental Analysis ?
Key differences between fundamental analysis and technical analysis-What is Technical Analysis ?
What are the Key Differences between Fundamental Analysis and Technical Analysis?
Advantages and limitations of technical analysis
Basic principles and assumptions of technical analysis
What is the Dow Theory?
The six basic tenets of the Dow Theory
Applications of Understanding the Market Cycle
The Psychological Ebbs and Flows of Market Cycles
Day 2: Chart Types And Patterns
Understanding different chart types (line, bar, candlestick)
Introduction to price patterns (trends, support and resistance levels)
Recognizing common chart patterns (e.g., head and shoulders, double tops/bottoms)
Using patterns to identify potential price reversals and continuations
Time Frame Selection
Scale selection
Software for Analysis
Day 3: Technical Indicators
Introduction to technical indicators (lagging and leading indicators)
Trend indicators
Momentum indicators
Volatility Indicators
Volume Indicators
Popular indicators: Moving Averages
Popular indicators: , Relative Strength Index
Popular indicators: MACD
Popular indicators: Stochastic Oscillator
Popular indicators: ADX
Popular indicators: Bollinger Band
Interpretation and application of indicators-Trend Identification
Interpretation and application of indicators-Confirmation and Validation of Trend
Interpretation and application of indicators-Over bought & Oversold Signals
Interpretation and application of indicators-Divergence
Interpretation and application of indicators-Time frame Consideration
Interpretation and application of indicators-Understanding Indicatitors Limitations
Combining multiple indicators for confirmation signals
Day 4: Volume Analysis And Market Breadth
Importance of volume in technical analysis
Volume indicators: On-Balance Volume (OBV), Volume Weighted Average Price (VWAP)
Interpreting volume patterns and their significance
Overview of market breadth indicators (Advance-Decline Line, McClellan Oscillator)
Day 5: Trendlines And Support/Resistance
What is trend?
Types of Trend-Uptrend, Downtrend & Sideways
Drawing trendlines and understanding their significance
Identifying and confirming trend reversals
Using support and resistance levels to make trading decisions
Dynamic support and resistance (moving averages, trend channels)
Pivots as Support & Resistance
Day 6: Risk Management And Trade Execution
Risk management principles in technical analysis
Setting stop-loss orders and profit targets
Position sizing and calculating risk-reward ratios
Executing trades based on technical analysis signals
Day 7: Putting It All Together
Developing a trading plan based on technical analysis
Case studies and real-world examples
Make your rule book
