Technical Analysis 101: Indicators, Patterns, Strategy for Trading & Investing | Gideon T | Skillshare

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Technical Analysis 101: Indicators, Patterns, Strategy for Trading & Investing

teacher avatar Gideon T

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

19 Lessons (1h 30m)
    • 1. Introduction

      4:09
    • 2. Theoretical Foundations

      12:06
    • 3. Japanese Candlesticks

      7:09
    • 4. Support & Resistance

      5:32
    • 5. Fibonacci

      4:55
    • 6. Pivot Points

      2:51
    • 7. Moving Averages (SMA & EMA)

      6:04
    • 8. Oscillators (MACD, RSI, Stochastic)

      6:08
    • 9. Oscillators 2 (Trading Divergences)

      2:15
    • 10. Williams %R

      1:30
    • 11. Bollinger Bands & Keltner Channels

      6:00
    • 12. Parabolic SAR

      1:28
    • 13. ADX

      2:25
    • 14. Ichimoku Kinko Hyo (IKH)

      5:14
    • 15. Elliot Waves

      5:27
    • 16. Harmonic Price Patterns

      4:10
    • 17. Chart Patterns

      3:45
    • 18. Technical Analysis & Strategy

      6:30
    • 19. Recap & Class Project

      1:53
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About This Class

Ichimoku, Fibonacci, Bollinger Bands, flags and pennants. Confused yet? This introductory course* breaks down technical analysis into easily understandable bite-sized lessons. Learn a variety of technical indicators and chart patterns and learn how to incorporate them into your trading strategy. Regardless of your investing/ trading timeframe (minutes, hours, weeks or months) or whether you intend to predominantly use fundamental analysis for investing/ trading, this course equips you with the basics of technical analysis every trader should know.

The course covers:

  • Theoretical Foundations (Efficient Market Hypothesis & Behavioral Finance)
  • Japanese Candlesticks
  • Support & Resistance
  • Fibonacci
  • Pivot Points
  • Moving Averages (EMA & SMA)
  • Oscillators (MACD, RSI, Stochastic)
  • Williams %R
  • Bollinger Bands & Keltner Channels
  • Parabolic SAR
  • Average Directional Index (ADX)
  • Ichimoku Kinko Hyo (IKH)
  • Elliot Waves
  • Harmonic Price Patterns
  • Chart Patterns
  • Incorporating Technical Analysis into Trading Strategy

*If you have little to no trading knowledge, we suggest you take the "Trading 101: Forex, Stocks, ETFs & Strategies" course before embarking on this technical analysis course.

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Gideon T

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Transcripts

1. Introduction: Hi, everyone. Welcome to this cause on technical analysis. Where will be teaching you a bit about any core indicators Chart patterns on how to incorporate technical analysis into trading strategies or investing strategies. So what is technical analysis in the first, please? What can you got? Analysis, Um, in short, users historical detail. So this can be price movements, volume and other parameters to be able to have you in predicting future price movements, which we will be used for for investing as well as for treating so well for short term and long term use. Any kind of this is, however, is quite a convention stopping in that some people believe that I think right now assistance just complete waste of time and it has no provided you no value at all. And these people believe that the only way to embassador treatise look at fundamentals. So technical analysis stands in contrast with fundamentals where you are looking at and not looking at and focusing on a chat itself. By focusing on a news and on C four companies and stocks, you're focusing on the company fundamentals, for instance, and changes and industry to inform your investing decisions rather than depending on previous historical detail. Off the stop, the born or the security by the same time and the other end of the spectrum, there exists technical purists who do that. It's possible to be able to consistently make money and implemented trading strategy by simply looking at the technicals in conducting technical announces without carrying it all about, um, what is happening in the real world? So you don't okay, you don't need to look at the A news report. Saudi company earnings releases, for instance, Those technical promise believes that believe that you can just look at the, um chopped and be able to treat profit or invest profitably based on it and what I was adjust on my report share in this course would be softer middle ground between these two spectrums did the additional end of the spectrum. So the middle ground will be suggesting that you can use technical analysis within your trading strategy or investing strategy on the extent to which you use it is totally up to you. But I still feel that technical analysis does provide some form of value, uh, and can be anus useful to you. So what chemical analysis is, is a useful toe, but it is not. Some magical are formally in special indicators that can there's always right, right? Infect there they're often cases where, um, different technical indicators would. If your defense signals. One will tell you that it's good to buy now, and the other another will tell you it is good to sell now. So I'm using technical analysis is really more of an arts rather than the science, although the creation off indicators used users on mathematics and statistics. Okay, so while we cover this cost, so our first start with some tour echo foundations to give you a background idea there'll be a bit dry. But I think it's useful for you to have something. Our understanding I m. E will focus on some general, um, are let's talk about Japanese candlesticks are supported resistance, and from there we'll move on into a sound medical pools that you have, um, from supernaturally all the way to Jim Moku can cohere like ahh, um, and after that we will be focusing on some of the chart patterns that you can use let waves harmonic price patterns in other trump batons and we'll end off with teaching how to incorporate what you've learned into your trading strategy or your investing strategy. Okay, so that's about it. And I look forward to teaching him in this course. 2. Theoretical Foundations: how everyone will come to our first lesson in the technical. And that's his cause. A theoretical foundations, uh, in his lesson. I'll be covering a bit about some background information in terms off the efficient market , introducing you to the efficient market hypothesis or am hitch, um between suggests that technical analysis is completely useless and holds more value on. In fact, you even suggest that actively investing or trading is completely useless, and we should simply by sea up, invest or treat passively on simply by index it here, for instance, and benefits from the growth of the economy. So if if you would like to learn about technical indicators and chart patterns in mid aliens that's restricted to it. Feel free to skip this lesson. But I strongly encourage you to sit through this lesson to get some background manage in terms off white and cold. Analysis might hold value in might work. So our first introduced you to image. The efficient market hypothesis is so it states that price levels always fully reflect all available information. Eso, In other words, when you look at the price off his share, our stocks Oh, our prices for border that is being traded freely in the market. Um, the M heaters suggest that that price level would fully reflect all available information. So you reflect the previous earning reports off the company. It would reflect the information about projector industry growth. The company is in on the industrial companies in on information similar similar to that. And given that given this fact e m he who thus suggests that any form off still information meaning old information. I cannot give you any risk adjusted, superior, risk adjusted returns. So, um, in other words, like, it makes more sense for you to try to actively treat or actively our pick stocks. And, um, he shot suggested in general stock prices for random books. So it's impossible to predict future prices. So there tree forms off the beach. The weak form suggest that passed prices and returns Historical data off price levels, for instance, hold no value in helping you predict future prices. And this would completely render technical analysis useless. All right and semi strong form AM which suggest that all publicly available information I cannot give you superior me suggestive returns. So this would mean that even fundamental analysis will be will be useless because your fundamental analysis based on publicly available information and this suggest that even that information cannot help you predict prices to gain superior every suggested returns. And the tuck ah, form off, um, hitches the strong for me impeach, which suggests that was a step further, suggest even insider information. Uh, cannot have you makes a pure returns as insider information on the Cup, but I think most of us were agreed that strong. For me, impeach goes a step too far. Um, after all, that's the reason that motivates our people. Toe that insider trading in the first place because insider information whose value to happen you predict future prices off stop, for instance. So what I'll do now is to, um you should use you a bit into people finance and tell you why the shortcomings of the image, which is very important given that if you are actively trading, are actively investing, comes off picking stocks to be fundamental analysis or for this lesson winning chemical analysis, uh, is important to bring down the M each right eso so that you know that why are doing adds value right rather than simply passively investing being a better option. So I am Jesus, actually be sawn tree assumptions. The first assumption is that investors are rational and value securities rationally. Okay? And the second assumption is that if some investors are irrational in the market, then to the extent that these investors are not rational, then there treats we shouldn't really cancel out and no affect the price levels. So see, they're all off irrational people, but half of them by the sort of stop and the other half cell. So their effects on the stock price generally can sell. The second assumption it cut assumption is that if the investors, if this e vision of irrational investors all irrational in similar we spinning all by all sale um, a certain stock, my security so that such that they are effects on the price levels Do not consol. Then I'll be treatise. Was that stepping? So what? I'll be treatise. Have you treated us? Our people are more commonly agencies and institutions which try to profit off and make money off. Um, bringing a set prices security prices back to the fundamental value. And so, for instance, if they feel that the price off Stop A is extremely high and going is much higher than the fundamental value off the company. I don't want what you do is that deal shot Stop a and bring it back to go up, produce a selling pressure on stop me to bring it back to the fundamental value and on money from that shot. Ah, shot position. By the same time, they're usually simultaneously by, uh, she's not be which is close up, astute off Stop me and the same industry to protect themselves against general movements Any industry in the entire industry. Okay, so that's what I patricians do and so it doesn't set off. The EMP teaches that these arbitrations are effective in bringing d, uh, in bringing the market prices and security by suspected fundamental value and also exists the fragments a selection argument which suggest that those irrational investors, because I betrayed us, will bring to stop participated. A fundamental value would lose money, right? This irrational values this direction, investors will lose money over time. And because of that leaf, the stock market on that would reduce the number of irrational people in the stock market. Okay, so these are assumptions off the efficient market hypothesis is so there are some challenges to assumptions brought about by the role friends. So the MH uh, efficient market hypothesis is the more traditional economy, extradition or finance, which was believed in the past but of the rights of behavioral comics and be able finance. We I suggest that impeach does not always hold and effects and in fact, markets I generally inefficient. So to challenge the first assumption, we know that in general, anecdotally, investors are not rational, not irrational. You and me, I bet that a Teesta starts off our investing and creating journeys. There have been times where we acted on our emotions rather than acting rationally and objectively based on the information that we have so off course. Anecdotally, we know that investors are not always rational and besides sending totally they have been studies have been conducted. The shoulder investors are not always rational beer Julie loss of us, meaning that we feel the pain of loss is much more than the joy off getting profits. So we would in general, cut off losses earlier compared to I'm thinking profit. Besides that, we are affected by things like framing. Uh, it comes off. See? Also constantly sent two financial gurus on why the hot stocks right. Affected by media, which may not present on the value of a stock accurately. So investors are not always rational. And to challenge the second assumption, we do know that investors are investors are always irrational. Such data that effects and that treats cancellation up. And we see this Trudy behavior off Harding where a lot of people you know, the audience a hot stock stock is gonna stop, the spread is gonna increase and everybody by stop here. And he stopped presents Not be rockets up. And our bubble forms, for instance. Right? Uh and so we have seen this and off times in history, and we know that the second assumption does not hold so under the assumption which is the one that is harder to challenge. So that tell assumption is where people finance enters, um, and beautified and suggest that I be treasures are no effective in eliminating the effects off in national treatise. And they are not effective to bringing the price of security expected a fundamental value. And this is a pillar off your finance. The idea off limited arbitration. So, um, it suggest that there is, firstly, a lack off close substitutes. So in terms off, But you're just trying to make money from simultaneous buying and selling. It is really hard to create riskless hedges toe unmanly consistently without risk for RB treatise. Do they let off course substitute, For instance, when you want, uh, see, the price of Coca Cola stocks are rocketing, for instance, and arbitrager ones too shot Caracalla but wants to protect itself against general movements in the industry. They may be elect off a close cross attitude of Coca Cola stock. Maybe the first thing they tend to is Pepsi, for instance. But we do know that they don't know exact substitutes two days to some risk that the I've changed, I would definitely hold. And the second thing is that this that mispricing me waas certain before disappear. So even if I'll be treacherous, sea can put pressure to being. To bring the passable is set better is fundamental value in a short term, for them is pricing marker, and he price my move even further beyond the fundamental value before the little disappears and goes back to the fundamental value and during this short term period between just might like the finance to be able to constant constantly hold that position, and they may be forced to liquidate opposition on this prevents arbitrage just on being effective. So to conclude this lesson, I know it's really heavy and a bit boring. But to conclude this lesson technical analysis, that's what Oh, quit work. Thanks to the existence of behavioral finance, which suggest that markets are not always efficient and that due to inefficient markets as well as the existence of investors sentiment um, Pentagon Genesis in fundamental analysis does hold value. Okay, so it is a big content TV, but I'll see you in the next lesson where you dive straight in into technical announces. 3. Japanese Candlesticks: Hi, everyone. Welcome to the lesson on Japanese candlesticks analysis. Course I'm so long will cover and is lesson is happen. You understand? Some Japanese cannot see patterns on what you can tell you about investor sentiment and and true knowing investor sentiment can have you to some extent in terms of predicting future price Mifflin. So the music So what is the roughness? Candle See Darkness, Candlestick eyes one. We wish you can show your trying. So then re look at past ideas. These are Japanese closely shots. So the basics are, uh, so busy competing is in such but only you have a box with two lines above and below. So a bullish state I will be greening holler Bearish can say Israel in color Eso the end of the line shows the high off period The bottom line shows you go off, period and the main body on the candlestick shows he open and it looked so for green collar Interstate open will be the bottom. I will be about them part of the body and closing price will be the top our body and the opposite is true from the very scandal. See Barry Fennell, State means that during that time period, the price level went down from the open. The close on bullish, bullish final state. The possible went out during a period from the opening to the loose. Okay, um, sometimes the alliance off Kendall statehouse in all has weeks or shadows. Okay, so on so really learning about sandy home candlesticks and how you can use them to run about It's not about in business sentiment. So yeah, we ever number off single can, No steak, single candle state examples. And so the Mirabeau Zoo staying, so can state is soon here. So this guy has no upper hand washing clothes. There's no license, you can see. And, uh, this is just very strong price movement in single action. So, for instance, we see this Rick cattle state borrow Basel Candlestick. Just a very strong bearish sentiment which would suggest maybe the price on the, you know, go down for an external. See, um, emphasizes we see spinning tops. We've long upper and wash shadows in a very, very small body. This is just a decision, right? In a market, because nobody price structurally that and went very high and very little. We didn't pay for it by the end close at similar price levels. So it shows indecision that market i d. And here we have you here. Oh, geez. So true that resume here. Travel fly neutral. Huji as always, a great stone bogey for the easy have equal opening closing prices. So the main bodies looks not resistant. So it looks like a key shape right? T shape my bestie on a small heat. Um, so a dragon fried Lucio suggest that the price is actually, uh, it was Jesse that the unity price went down. And then it went up again and closes in on the same price level. Greystone said he showed at a price went up and to the bulls, I was strong and start by near the best one and brought price back to the closing price on that was Jesse. Very sentiment for Greece. Louis, um, makes you have you hammer any hang man which are small bodies and long no shadows. So we see here be very long shadow Benoit, show an arrest, my body and the counterpart is a shooting star or the opposite hammer with a small body in a very long up a shadow. And this is really because at the end, off in other train and so just possible reversal. So, for example, we have a long, very shrink going down, down, down, down, down. You see, ahem, our hangman isn't just that possibly has a reversal. And the opposite is true for the shooting star or a hammer. What more can you state an estate agents? So here you have the bush engulfing pattern. We have a bearish scandal followed by a larger bullish, Kendall said. Just very bullish investor sentiment. Um, Persian coughing at the opposite. You have a bullish kind awful by a larger Barish handle. This engine is bearish, investors sentiment, and so does that surprise you go down. Besides that, we have frees us. So treat tweezers is where there are two candlesticks. Um, the US candlestick is the same. It's current trends will initially, with the price going down, you see this candlestick and the second is the opposite. So that's a reversal, with prices going up all right, so distance off Theresa's well with similar Cheryl X would suggest a possible reversal in front. Now we will want to triple candle state patterns So we have quite a lot here with the morning star. The evening star tree. What? So just make sure that close tree inside out and she inside down. Okay, so the morning and evening stuffs, we have Kendall first candle being the same as the trend. So he's going down. So we have a very strangle, um, photo by a small body handle. So here's more body candle here and here seem trend. This small Barkindo and then a candlelit, uh, is on the opposite trend so you can go for the evening star. Um and which any can I have? The opposite trend closers beyond the midpoint off the first Kendall. And that was suggests e a reversal. A possible reversal in this price. She worked for tree, right, So just entry back close. You see the rapid increase in price. So this, with a second candlestick body being bigger than the fuss were far. We've little to no up a shadow and cannot stick being at least the same size as the second , with also little up a shadow. So this was just a really strong, bullish or very sentiments. Lastly, you have the treat inside our country inside out. You have a long body trend, candlestick followed by a second candlestick in the opposite direction, reaching the mid point at least the mid point of the first. And we have a candlestick that closes above the first high and below the first. No, the first candlesticks law on this one, once again suggesting bustle. Okay? 4. Support & Resistance: Hi, everyone. Welcome to this next lesson on the technical analysis courses A shortness entitle support and resistance. So what is supporting visit? Stand? So the airlines or price levels which I really had to recall and be true Saudi can be trend lines already can be channels here we see arising Ascending channel here the uni usd for our chopped. So a same time, you know, because of other types of channels, we can have the descending channel where two parallel dollars sloping lines in which the president was bouncing within. Or we can afford his aunt or channels to. So what happens when the price level touch us? He is does like, um, it could eat up, bounce off brick up to the only two possible outcomes. So the presence that I'm suffering here in the chart places where it bounced where the price bounced off and reversed on the other possible possibility is in Brickell, which is thief. I know, uh, from nothing. I'm settling here and the price of big sound off the fences. Here we see the president off the ascending channel in the u D U S t shot and wind out quite a bit from that. So one strategy that some people use in technical than technical treating I will be a breakup strategy. Where once the sea, Um, once we see, uh, can hosting breaking out off the train Nice enough candy There would be cell or by, uh, and try toe on money and gain profits on the recall. Another possible is possible. Trading strategy is a treating off the answers off the off the residents line. So, for instance, we see the U the U. S. Each moving there. Well, let me see what is a pattern you see moving in the rising ascending channel. So after it bounces off here and increases tow us and you you are sure that they say bounce off and it's not you break up, then you can buy invited invited the price increase, Although we until he hits the upper the upper resistance. Uh, like so the top line is in every sense my and the bottom line is a partner and cross the supports of price levels, the support of the lower price levels, and it's hard to be true. So you have two types off because that's the continuation break out in a reversal recalled in the continuation. Break out the price level, the process move in a direction I have seen as the initial price movement reversal for reversal because the prices process move in a direction opposite from the initial price movements. Okay, so so one problem, however, that thesis people who try to treat using these methods it's false recalls and effective. The support Mr Left support and resistance lines are kind off fuzzy. They are not very distinct. So, for instance, we see here found it, Do you? The price levels did indeed extend beyond DIA, Mrs. That's Line and beyond support lines, Right? So one might be tempted to think that there's a breakout happening and off and still well by and that could lead you to lose money when it turns out to be not to be a break out by, actually just simply bouncing off. So it's important to remember that this lines are kind of fuzzy and not very listing. Not it's not a Ziff want to touch us and exceeds the line, then it is definitely a brickle, so there is a possibility off a force because we can see through example they absolutely here. So how do you determine where there's a false breakout or true breakout? One useful, I think to know is that recalls usually occur at high momentum and volatility. Oh, and as you can see, if you're ready, you momentum is really stronger. You pick up. They are rather than know rather than price, slowly inching out off the away from the support line, we see quite a rapid movement as it moves across the support line so that it's one possible way you can. You can. So what is he forced? Because our will become Our Secondly are unique. You can look to other forms off confirmation, such as further movement in the expected direction. But that would be up to you to define. So, for instance, you see, oh, if it moves to candlesticks oh, down in all of the trend line and continues because the trend line for two candlesticks consecutively, then our confirmed that is biblical. So that's one example Off away you can define oh, further movement in the expected action. I know what you can do. It is to use other technical indicators to help you know, whether is a when I said we caught. For instance, When you have boring Arbenz widening on the every true range increasing necklace, I chanced it become ill. Be happening, for instance. Yeah, so I hope this. All right, trees, Listen, you'll get uncle idea about the what's a part in business lines is and how you can use them in your trading strategies. I'll see you in the next lesson. 5. Fibonacci: everyone welcome to our next lesson on people as she you know, anybody analysis course eso Actually, there are a lot of people not share relates at 10 a goal and an assist pools. But on this course will be focusing on what's common ones. We could be that people not share decrease man as well as extension levels. So before I go into that into body are I wanted to find what? Swing high and sweet loser So swing highs, agnostics with who agrees and the wise So everything about it is is a candlestick which is higher than the other two. Um, edges and candlesticks. A swing low, on the other hand, is the opposite is he can distinct with to a Jason higher laws. So you see at the bottom off the off the trend and he has to Jason. Okay, Mystics were just slightly hired in it. Okay, So retracement levels as well as reducing levels, could be used as our support and visitors levels or extension levels can be used for profit taking as perfect taking levels in your treating or investment strategies. So why didn't I must here. So you see off numbers here these numbers are numbers for increase my levels. And these numbers are the numbers for extension levels. So why didn't that? I must mean so. For instance, 0.66 level is, uh is obtained by no taking the swing high. You can see how you could scream or get a people actually decrease men. Right? So you take the swing high u minus it by the swingle. The difference multiplied by 0.236 and you add it to the base level. And that's where you get those 0.36 people actually retracement level, and you can do the same for the rest of the numbers. And that's how the program completes the various every trace my levels, and you can do a similar Oh, seemed like competition for the people actually extension levels with these numbers. So I would like to show you how the drawing people actually levels in the first place. Okay, so let's go to this shop on training view. Um, depending on what reading software used in Leon decided different, but generally training all things off where I would have, uh, would have actually have you draw people. Actually, Chrisman extension levels, obviously. So exactly a string law and swing high. And it draws for me if you don't actually retracement levels automatically. Okay, so why do they walk in first place We don't actually have was usually walk because of a self fulfilling prophecy. Is not that these numbers are very special. It's just that because a lot of people use who would actually decrease minute extension levels. Um, they become the naturally become supporting this 10 levels because the stock market and, uh, and its financial markets for any what oh, does of a self fulfilling prophecy Stop. So, for instance, if a lot of people believe that something what, uh, do you buy it? And the price is actually what a self fulfilling prophecy. Similarly, with a lot of people think this weapon actually levels, we will see support and resistance. Then people would buy and sell and his levels and becomes a self fulfilling prophecy. And that's why it works. Okay, So, uh, what you can do is that you, Stephen, actually use that feeling when actually level with other technical schools. So we have. We're here in this trial, have extended a few monarchy levels and concede it. Indeed, they wish Osama support business levels. You see here there's some support here Treats so easy from dropping down. You see some support here. Also, at this level, you see a resistance. It is people, actually level and so on. So what you can do because no, every people, not she level will always to be respected. Sometimes you got just goes true. Example for you can see here you just went through without carrying about this. Women actually level. And what it can do is that use candlesticks as well as trend lines and other technical tools to have you predict whether the bill in national level will hold. So, for instance, we see a Candlestick Circle here in this EUR USD, follow a chart showing. We just want some little spinning partner feeling a lot rougher in his general market. And that suggested that people actually know what could you expect that are There is a possible reversal that might be seen. Yeah, So I hope you understand a bit and then a bit more about people, actually, and I'll see you in the next lesson. Thank you. 6. Pivot Points: everyone welcome for next lesson in a tank or analysis costs on pivot points. So people points actually quite similar to our own. Actually, Patrice men, our levels in that deacon act as support and resistance levels. So there are multiple ways in calculating the points using the highs lows as well as closing prices off the previous period of the previous Kendall state. So, for example, you see multiple ways off, huh? Operating a key you can t. You can take all the height of heart. You can add a high end oh, and cruising and divided by trees and get average or some people include the opening price and divide everything by four to get in an average off. This on the opening price, the closing prices high and low and the other ways of properly eating it by putting more emphasis on see the closing price for the opening price. And after deriving this P, we can call, then copulate support and resistance levels. Using a different set off formula, you can see here so there are multiple ways off completing people points. There are a few that are more popular, So it is the chart where people points every drawn, Um, And as you can see here, the people points right. We see the kilovolt being shown here. It's a sensor, and our five is this levels as well as five supports levels being shown in a different periods. And you can see that lady boo after some give some support of resistance. We see, uh, you see the price bouncing off our one and s one e up, for instance, you see another price bouncing off our white, you see, So in general we see him appoints due up. But there are instances where you there besides bouncing you, they will be breakouts. Yeah, So I will not show you how to draw pivot points. And I really is a feasible uh, is that Facebook's dealing chart? Okay, so how we dropping points is ah, he's actually just using the why haven't having some way or using you guessed that coins and we just put it for you. So it's really simple, and you can use it similarly in a similar way to, um, people actually retreats. Many levels in, comes off by new areas for support, as well as a resistance to watch out for uh, you should I say no. I'll see you in excessive. Thank you. 7. Moving Averages (SMA & EMA): everyone, Welcome to the moving every just lesson. In the end goal analysis course, this lesson will be covering to mean types of moving averages the exponential moving average or E M E, as well as the simple moving average or SME. So what is the purpose of moving averages moving every just at to remove noise in a price struck, such as a candlestick chart? By smoothing out some of the fluctuations that you see, I'm due to the high amount of noise and small fluctuations that you see within our domestic charts. So there to mean types are moving every just yummy and SME. So what is the difference and how would he completed? So for SME simple moving average you take the simple average off, say, the closing price off a certain time period off previous candlesticks, for instance, you can take the our average of the past nine candlesticks, uh, closing price and probably a semi cough. Meanwhile, the exponential moving average Yemi is slightly different are simple. Average is not complete that rather greater weight is placed upon more recent closing prices, so this causes different characteristics in the M E and SME. For DME in response Faster given day places more, more weeks on more recent price on the recent prices and fast follows the candle candlestick movements more closely. However, this leads to a possible a possible false, positive or false indication off changing trend. For example, Um yeah, I, due to the fast response that set me on the other hand, has probably give you are less chance off a force indication of a change in direction. In price, however, a duty reflector it gives equal. We teach toe all prices in a certain in a given time period. It has a much slower response and you may lose out on getting on the trend earlier. Besides the m E n s. I mean, it's not a way to very moving every just that is to buy this two very time periods in which the moving averages based on so you can a base are moving average upon a longer time period , a greeted amount of time, and this was more than out of fluctuations more and it too slow reactions on the M E policy sme. But it was really up to you to really find a street spot on the time here, it and up to you to feel that are you enjoy treating us anymore or anymore. It requires a little off a bit of trial and error. I'll show you bring up right now, toe, Have you get a good understanding off this concept you have just explained. Okay, so I brought up the chart off your USD. Billy really shot. And here we have product three e m. A day, exponential moving average in the Orange line. And the blue line is the moving average, and both are based on the past nine candlesticks closing prices. So, as you can see, the orange Line four loss the candlestick movements more in response faster with changes in action. And that is the exponential moving every just characteristic as competitive, simple moving average shown by the bowling ruling. Regardless, both of them are. And give the have you will be. Have you smooth and outside the noise and you can see trance much more easily compared to looking at a candlesticks directly. So now I'll show you what happened when you vary the time period. So not orange. Nine showed gifts. Um gives the simple moving average that is chartered based on the past 12 candlesticks. Closing prices. Write it in the past nine and as you can see, it is much smoother as compared to the finish line is my smooth as compared to the blue line and response slower to change us in trend interaction. So now you understand how moving everything is what I like to cover, how you can use them in your trading strategy. One way you can one way you can I use moving averages is will help identify trends with crossovers off moving averages on different time periods. And this works very well in a training environment. Besides that, you can use moving every just said dynamics apart and resistance level where you can watch for breakup all bounces. So I'll show you how I assure you, in a bit. No, it was How can I apply it so on? For instance, now we have the 90 Emmy SMEs was the 20 SME shown in orange and blue lines, but it's a strong doctrine. We see the trough, the SME being lower or they sent me off the longer time period being below G me off the shorter time period and you can. I didn't find a change in trend. A tuna crossovers, for instance. With the prices dipping here, you see, across over here, and with the price changing from up trained to a downtrend, you see another cross over here. So what I can do is to treat across all of us. And that is one possible treating, tried strategy that some people use. Besides that, some people use the strategy off candlesticks bouncing off on the space between Emmys off to different time periods or bouncing off the exponential moving average tartly. Yeah, so you have to experiment a bit of this and find the optimal time period in which you should base your SME R e m e off. Yeah. I hope you learn a lot in this lesson and I'll see you next lesson. Bye bye. 8. Oscillators (MACD, RSI, Stochastic): everyone in this lesson on oscillators in a chemical analysis course, will be covering tree and CO. Indicators. Firstly, the Emmy CD, second league RSC and nasty. It is to pass the indicator. So here we have, uh he trusts the daily chart off Boeing. Um, along with the tree indicators here you see the M A, C d or the moving average convergence diversions indicator. Here you see the RS I or a relative strength index indicator. And here you see the stochastic indicator, and this is the main candlestick chart. Our daily chart for Boeing leaders in general are useful for ranging markets as compared toa trending markets. I know it's a bit by bit result for now, but I'll dive straight into the respective technical indicators now. Okay, so fastly are moving average convergence diversions or M e C. D. So what is it and has incorporated in the first place? So the M E C D line is the difference between a two moving averages and is not the price so is different from the SME and e m e have profit in the past, so the edges a average off previous prices by the Emissary Linus product based on the difference between two moving averages are usually the exponential moving average. And so there is one line on the chart you see here and the other line, because they're two lines are on the other line is the signal line, which is generally an E m line off a sudden time period. So on the history and you see here the red and the green History graham across the difference between the two alliance, the Emissary Ryan and a signal line. So how can you use the Emmy City in your trading or investing strategy? So the Emmys The Emmy City can be used firstly for trend identification, with special focus on the crossovers off the signal line and the Emmy City line. You know this that when there's a general up train you would and a reversal, you will see crossover off the embassy, relying on a single line and on it goes on until a crossover signals a reversal and which usually follows a down train. So there is one way you can treat are based on the M E C D. And when it's a widening off the difference between the two lines. Um, you will see. Ah, the history, Graham. Our plot increasing, increasing in length. So, for example, at point off crossover, you see, that doesn't the history. Graham is zero right? Is that a zero baseline? Because the difference off the two lines zero. But I start with between the two tonight increases. His program increases that many of the instagram increases a lot. So this his grams useful to identify bullish or bearish momentum and the extent of the momentum. And they'll be useful to treat, especially if you want to. If, for example, a strong, bearish momentum could say no a continual continue our bearish trend. Next we have the relative strength index on our C. R s. I is Copley. It's based on a scale off 0 to 100 and it's Hockley that, based on the current against losses, compared on contrast that with the average gain and loss is off past periods. Eso the trash hold levels off the heiress. I is a set of very excited to be 70 and 30. So when the RS I pokes above the 70 level, it is considered over boats and people generally are sell it. If it goes below the over sort on have all off less than 30 then is considered oversold. And our people usually by it by D Uh, yes, it So the parasite is quite useful for training and identification and usually stays within the range off 30 to 70 range just for FORTRAN identification. Because when it's above 50 when our size about 50 that generally means there is a bullish markets. What What is less than 50 or that suggests a bearish market, for instance? Yeah, you see the RS I m staying generally below 50 and bouncing reading that region and this suggests. And as you can see, there is a general bearish market during that time period. Okay, now we have these two. Testing indicates up. Look at the stochastic indicator is also on a scale of 0 to 100. However, the treasures are different. They are accepted to be 80 and 20 respectively, with when the stochastic indicator increases above 80 as Children, this arrest I'm circling. It suggests that there is over bots and you would possibly want to sell the Saudi s set if it's or assault on below the level of 20 you you can buy it. So the two lines is focusing indicators. Mitt off two lines and measures the price momentum by measuring the degree off change between the closing prices off different time periods. And it works on the principle that the momentum off the price movement I would change before the prize reverses. So that's, uh, that's how it works. Eso I hope this lesson you have cruelest lesson. You gain a good understanding, an overview off some of the oscillators. Uh, and I'll see you in an annex. Next lesson. Goodbye. 9. Oscillators 2 (Trading Divergences): Hi, everyone. Welcome to the second part off the awesomely first lesson on where I'll cover a bit on how you can use possibly bus in general, treat divergences, which is a strategy that can be applied across all tree oscillators that have covered in the previous lesson. So what does it mean to use also levers to treat divergences? So one way you can use it is to identify regular a bullish or regular bearish divergence and use it to identify reversals in the price. So it before on my mouth you see here a top pattern. We see a candlestick chart and the bottom part you see the obsolete service can be the emissary rs. I always stochastic indicator. So here we see a regular bullish divergence. So the price is shown by the Candlestick chart showing a lower low while the oscillator is making higher laws and this usually occurs at the end of a downtrend and suggest every vessel if a price movement outwards. Meanwhile, D um, regulation a regular bearish divergences shown here with a higher high, seeing any price levels while lower high seen in the oscillators, and this suggests a artificially happens an NFL doctrine and suggests a movement downwards and reversal downwards so you can sell the asset on security eso something else called hidden diversions, which you can use to identify trend continuations. So here in this chart, with heavy, hidden bullish divergence with a higher law in the price in price while the oscillator shows in the willow and it suggests a continuation off the price upwards. Meanwhile, for hidden bearish divergence, we see a lower high in the price and a higher high in the oscillator, and they suggest a movement bearish movement downwards. So I hope truth is less than you get a bit knowledge on how to treat divergences, which is a common strategy produced when you have obsolete us when you use also leaders, so I'll see you in the next life said goodbye. 10. Williams %R: have one. This was gonna be a fresh a lesson on Williams Percentage range indicator I usually express in a Williams percentage are so we know Spanish are opposite intervention. Nikita is a momentum indicator showing the price showing you where the last closing price or the most recent hosing prices relative to the highest and the lowest prices off a given time period in the past. So are the less percentage are is plotted on a skill off zero to negative 100 can be thought off as an inversion off the stochastic indicator. But it's more sensitive as compared to the stochastic indicator. As you can see, the stochastic indicator product below in the appalling daily chart is shown to exceed the limits, much less as compared to the millions percentage are indicator. Yeah, for instance, you see Benny, it barely exceeds the limits here, but in the winner Spanish, I exceeds a lot. Um and you can see in this too initial cases too. So because it is so similar to the stochastic indicator, it can be used similarly. So identify potential reversals as our momentum in a certain bearish or bullish direction decreases. So that's it. And I'll see you in the next lesson. Goodbye 11. Bollinger Bands & Keltner Channels: everyone. Welcome to the Bollinger bands and Cutler channels Lesson off the tank or analysis course. Um, so our first start by introducing you to a Bollinger bands, which is a very common, um, tool any ball pool that is used by many treatise. So barring a band consists of tree lines, as you can see in the chart below test Last daily chart shown here. So the middle line shooting video is an SME are simple moving average. Meanwhile, the top and bottom lines are class minus the daily standard deviation from the SME line drawn I saw in general you can. One thing can green off directly from the Bollinger bands is a volatility. When the size and division off the boarding events are narrow, it suggests a decreasing volatility and consolidation. Meanwhile, a so I can see in the rapid uptrend here, um, the the top and bottom bends start to widen on. That shows our increased volatility. And in that short, increased volatility. Okay, so how do you use Bollinger bands in your trading strategy? So one way is to use it and trending market where you can identify trends s the price action would generally stay within 1/2 body lower half off the bowling event, for instance. Here we see a very strong bullish market, and we see the price movements stay within the Middle Assembly line as well as it pop boarding up Ben. Similarly, for more a strong, bearish trending market, we would see it. We will see prosection being helped between the middle SME line and the bottom, uh, welling up in. Meanwhile, in ranging markets are burning up. The price action usually bounces between the top and bottom bends. For instance, you can see here are the price generally, bounce says, and staves within the top and bottom bowling events and one strategy. You can use this to use the bends as an indication off whether the asset or securities oversold or overbought. For instance, if the price is below the war bend, you can think that it is possibly over salt and buy it. Meanwhile, it is overbought. Uh, you possibly can be indicate that by the price exceeding the upper boarding a Ben, there's another way to use Bollinger bands, and that includes using multiple Bollinger bands on which is which product using different standard deviations. So on a chapter to write a showing. A test last daily chat. We have to boarding Arbenz. Uh, overly on the the 1st 1 is the plus minus one standard deviation, which is shown here as well as the plus minus cool. Our standard deviation shown here. So how you can treat multiple bowling on bands is to use the space between the plus minus one SD band and the plus minus two s The sorry, The plus minus one s D line and class minus two s T lines is buy and sell zones respectively. So the buys one is between the plus one SD and plus two SD or the cell zone is between the minus one SD and minus two S t. So it will be in this region. The south and the bison is here as the mean standard deviation, by the way. So, um, what it can do in training environments is, for example, you buy when the protection is in. Problem is in the by his own and selling when it exceeds or leaves at the BIS own seeing if Gandhi so another thing that another possible way to treat with Bollinger bands is truly boring are squeeze method boarding. A squeeze happens when the price has to move sideways and there's type consolidation and is usually happens after aggressive movements in the price. So here we can see the bowling advance now ring very highly as the price stays within a shot and small ridge, and this suggests decrease volatility. So what I can do is to, you know, this off. Consolidation usually can be seen as a calm before storm, and you can treat the breakout off the from the upper ordeal a weapon and put a stop loss on the opposite side. So far sense. I want to see a break out here you will buy. You can buy the this price this set are putting a stop loss in the bottom site off the morning. Event channels are very similar to Bollinger bands and me use similarly, but how do you how they are calculated and a meat is a slightly different, so you have tree lines like the Bollinger bands, but the middle line is an E M E line. The exponential moving average, not a simple moving average, and department bottom lines are every shoe range rather than the standard deviation so they can be used in similar manners to a boarding a band. In the training market, it can be used to identify trends. Esti prosection stays all right in between the top two nights. But if in a very backward as a bearish market and various trending market, the procession will stay between the lower two lights in ranging markets. Color channels can be used to treat bounces between the two bends, so the strategies you can use is quite similar to appalling events. I hope that this lesson has given you a good understanding off. Boring are bad. This was color channels and I'll see you in the next lesson. 12. Parabolic SAR: everyone, welcome to the probably the most shot lesson that we have in this course on parabolic SAR. So what is as they are? SGR stands for stop end reversal and the parabolic size. Actually, one of the more simple technical indicators out there on can be used to have you have showed the direction of the market as well as potential entry and exit points. So here we have on the screen you d u S. T for our shot. So we notice that when when we put over later parabolic sound top off this forward shot. When everything bullish movement off the price, the parabolic sauce will be parted below the candlesticks. Meanwhile, when there's a bearish movement, the parabolic size pot it above the candlesticks, so that sure gives you direction. So what about entry and exit points and trained exit points can be a guest or can be given by instances where the parabolic SAR changes from being from the top offi off the candle sticks to the bottom of vice versa. For instance, we see the parabolic saw moving down what's been being above the candlestick candlesticks by the next one here they spotted here being below the candlesticks are that will be an indication for you to buy. And right now we've and bullish market upwards. Yeah, that's all. I see you in the next lesson. 13. ADX: everyone, welcome to the average directional index. Listen or idiots, listen. In the technical analysis course, it's gonna be a short lesson. So Esso e X the every directional index eyes on a scale off 0 to 100. So it is quite unique on quite the artist and CO indicators, because that's not really sure the direction of the price movement. Rather, it helps you to different ship sideways and sideways, reaching markets from trending Momenta markets. So, uh, in general ah week trend is one weird ADX is less than 20 and strong trend is when it's above 25 a very strong trend is when is about 50 As you can see here in this period cycle in the first period circled in this UT USD for our forex chart, we have quite a certain ways treating and sideways movement off the price. Similarly, in the index on the idiots chart, we would see a very low adx level that is generally below 25 Knicks in the second section. Over here we see a very strong trending market and that is met with a increase in the GDX levels are too above 50 and even close to 75 meanwhile, askew. Thus we also see a red strong bearish market here as a price. Decrease us and it also causes the GDX to increase. So you can see here that you know the price goes down. Idiots increasing so indexes non direction not is not indicated off the direction off the price movement by simply indicated off the nature of the market where there is ranging or is trending, and this can be quite useful as a screening tool. I see if you want to look for stocks and you want to see you out, you specialize in restraining strategies. All you specialize in trending strategies using ADX idiots could be really useful in these cases, where you can screen through a lash number off stocks are using a software and idiots as a criteria to help you identify stops there. Arranging and stocks are trending so they can easily implement your his limp. Remand your strategy, that's it. And I'll see you in the next lesson. Goodbye 14. Ichimoku Kinko Hyo (IKH): everyone will come to the gym. A cooking Go, Hugh or I can teach lesson in the tank analysis costs where we'll be covering this Benaco pool and indicator called E G H. So you know, on first sight Yeah, I can hear it looks very complex and confusing, but don't worry this less, and I'll be breaking it down into its support. Components are so you can better understand what it it's all about and how to use it in your strategies. So the AC ages multiple components were various different uses. So there is the Cinco de football idea at the time. Can is the only sign here, kid you in the Blue line and Ikuma, which is a area shaded area between two lights so the eye catches usually use us and all in one Tenneco Bondo, because it's multiple components do actually give you quite a lot of information on can be . Are some people technical puris treat using the I key hitch alone and not using any other technical indicators or tools in the are treating strategy so I can usually used for in forex and mostly use in GP. Why are the Japanese yen pass currency pass and okay, I'll go straight into picking it down into its principal components. So firstly, the Kidron sent or the blue line you're seeing the diagram below is the standard baseline and what it is that is the average of the highest high on the lowest low for past 26 periods. So you know the ridge off price movement in the past, when his experience you take on the low, low boundary and high boundary and you get average and this gives you the kitchen sunlight on the blue line. You see the tiger, and it is used as an indicator or future price movement. So if your price action shown by the candlesticks is a buff, are the kitchen line it's a just an uptrend. If it's below, it suggested doctrine. Simple enough. So a nice part of the component of the Cajuste e and Consent or the Turning line show or Souness orange in the diagram in a and what it is, is that is the average off the highest high in the lowest law for the past nine period. So it's a shot of ham Pierrette compared to the are you on set and excellent is an indicator off the market trend. So when it's horizontal, I suggest that the market is ranging while it's moving up or down, especially when there is steeper slopes. It's such as that the market is trending. Make the Chico spin or the legging line just the popular and you see in the chart below, um, did you can spend if you notice is actually quite a bit and lagging behind the candlesticks , and it is because the Chico Span is brought it based on the current closing price Potter twenties experience behind. So, um, you know carefully on the Chico said. On the popular line is simply translation or or a movement off the or Shift off the kendo sticks to the left by 26 periods, and what it is used as is that if the line off the candlestick across this the price. So if the *** or line should go spend nine crosses the price for my candlesticks in the porta direction, it is a buy signal if it causes it in. The other direction is a cell signal, so that's how they can be used, all right so far. Instead, you got a chart here. When the popular across US crosses, this crosses the candlesticks. At this point, it is a buy signal because they're disappointed to see cell signal UNIX, the single spend. Um, you can see that, uh, is really built. Here s S E. And it has to be. So the single spend eyes actually made off two lines. The first line is the average of the cancer in the kitchen, said the blue and orange lines and its product when his experience a hit so you know, is that is a hit off the off the enter price are congested, uh, talked. The second line is the average of the highest high, and the know was low for the past 52 periods. Product when you experience a head also. So the set first and second lines are both product, but it's experience a hit in France off the candlestick chart. And what the service and how they're used as is that eyes. The solvency support office says level. So if the price action moves into this shaded area, on top is a south signals, for example, you see here is a cell signal on, and then it moves. If it dips down into the into the shitter area, it is a buy signal. Simple enough. So, yeah. So don't That is the main components of the I k h. And I'll see you in the next lesson. Goodbye. 15. Elliot Waves: everyone. Welcome to the next lesson on Elliot weaves a technical analysis course. So it is lessening, recovering a bit on a cat pattern called Ellerbee's. So it was him broken down into two main parts. So the first part is the fight tree pattern, and the second part is the BBC corrective pattern. What you see in red, so offers cover a bit on the factory pattern. So before I started everything off, it is important to note that Elliott waves are freckles, meaning that each planet we've and be subdivided into swagger similar, and it weaves. So, for instance, while while Moody's lines it is in the diagram below our street, you know, they could actually be broken down into smaller. I mean, down. Menzel's smaller and that leaves. Okay, so now move on to the fight tree pattern. So what is if I shoot pattern? So, frankly, pattern looks like that is shown in the diagram. Ah, where know where the movement is? 12345 55 me movements and one tree and five impulsively. So it is moving in the main direction, the trend and forms the train, while two and four, um corrective weaves. So example. If the train is moving out, what's to involve? Move downwards. The train is moving downwards to informal being be moving upwards. Another thing about differential wave pattern is that you really? One of the impulse weaves the with one tree or five will be extended, meaning they will be longer and the other two weeks And the longer wave is usually the middle. We've our wave treat as you on your diagram. Okay, so, um, there are some rules in terms of identifying and it weaves cannot be Bookman is just how other ways are defined. So with tree can never be the shortest impulse beef. So you cannot be shocked that in both we've wanted be five and I rules that we have to can never go beyond the stuff we've won. This means that drinky are quite if pull back, two shouldn't go below at the start off one and lastly away for can never cross the same price us with one, meaning that during the pull back off before we force, you shouldn't decrease up to a point where, you know, is that a similar life price Level two with one at any point in time on. Besides this sizes rules. There are some guidelines meeting that, uh, you know, this really happens, but it's not absolutely necessary. So sometimes away five thus move beyond the enough does not move beyond the end off a three . And this is a truncation. So we're 5 may not extend. What's a lot in me, actually, not even extend beyond the highest point off a wave tree before the away for who back another. The Navy happens that we feed has to be very long. Schattman extended, and we have to wait for frequently bounce off the people naturally retracement levels. If you don't know what that is, go go back and refresh yourselves in one of the earlier lessons on people. Not she. Okay, so now that you understand, if I treat pattern, I'll move on to the A B c court. So after 30 ah five treat, that's and in a certain direction the ABC pattern I would occur. And the NBC corrective weapon goes in the opposite direction off the after patterns trend. So the treatment hats off ABC Cardiff patterns the one you see here in Rio In this chart, Isaac clears exactly if our, you know he looks similar to and defined few pattern. But in the opposite direction that is just a few components A, B and C are then, 05 five weeks. Besides that, it could be a flett, meaning that, you know, as you can see it in the below. You know, the direction is quite horizontal rather than, you know, direct opposite movement in the interaction. It could also be a try and go where it's on for like a flat. But the highs and lows are becoming less high and less low, so it decrease decrease in the rate decreases over time. Yeah, and it is about it. So how used any weaves and trading is that you can identify Ellen weaves in Tennessee competence, and that could be useful in terms of helping you know where to buy owing to sell from while trading him trading or investing. So, for instance, you see one true tree for on you think there's gonna be a five. So after the pullback or four and you see a short increase of five, you can buy in and write a wave, Um, to the point before the ABC corrective pattern kicks in. Uh, yeah. So you can Knowing how the and that we've looks like I can help you. I didn't fight in charts and treat based on this pattern. Okay, that's it. And I'll see you in the mix lesson. 16. Harmonic Price Patterns: how everyone will come to the next lesson on the harmony ice patterns in the tank going at this course. So how money price patterns are homer patterns that we have seen in the past closely charts and how you treat on them is, firstly, you wait for the entire harmonic price pattern are to complete before taking any treats. So we have to be the entire person to complete use. Identified a pattern in any tree accordingly after a tennis form. So they on about how money price patterns will convert city. That's the BCG pattern on the most basic one. There's a tree drive pattern, the Gandhi pattern, also known as the 2 to 2 pattern, as well as the deviations off the Got me a pattern so which are named after animals such as correct pattern bet pattern. And but if I cut in Okay, so this is how Miss Cleo looks like. So the ABC, the the A V City Patton assume here. 40 Perish A, B, C D, and bullish A, B C D. Uh, it's soon by the length off. A B and C D are similar. Andi tick a similar a time so Yeah. So, you know, almost paradigm. Roughly parallel. Um, So what, uh, numbers are here is people, not she retracement levels. So? So, for instance, you see that, um So, for instance, to point C in the BCG pattern is the 0.618 people, not she retracement off where no am being points rd swing highs and string loose off the field. The Fibonacci pattern. So that's what numbers mean. So for true Dr Pattern, his basically a obesity buys continued. So after ABC happens, uh, no days continue movement down movement, our movement. So it is a very street drive, and, uh, this is a bullish tree five. We call this a very shoot drive, or although the price is going up because, you know, after we see the true reform and after we identify this harmonic price pattern and you know the point trees hit, we sell afterwards. And then it's basically how treating with harmonic price patterns work key. And once again, the numbers are similar day off. A, B, C, D, and people, not she numbers. Next, we got in the order to a pattern. It is basically a BCG hasn't preceded by a high or low, so and this causes information off the W she more m sheep. So the parish Carly has a w. Shaped that the polish Carly has a m. She So after seeing a bully shot the form, Um, and having the people actually retracement level being hit. Either 1.272 or 1.61 each. You will by after that. Yeah, simple enough. So these are certain variations off. We got new pattern. Um, so you have the BCG along with our how are you? Bc visiting price movements. So it is the bearish crap. A bullish crap. Bearish bet, bullish bet, and as well as a butterfly patterns. I think they're all really quite self explanatory. And the differences are is looking at the people actually retracement levels on how much you know the extent off the price difference. Alcindo, um, price movements, the Pullbacks Andy are trained and up and the movement before the Pullbacks. So just focus on the human. Archie a never chose to be able to help you identify which harmonic price by affinities. Yeah, that's all for these short lesson. And I'll see you next lesson. Goodbye. 17. Chart Patterns: everyone will come to the track patterns. Lesson in the ankle analysis course in this lesson will be covering some of the most common chart battles. But do keep in mind that there are a lot off other chart patterns which we do not cover this lesson, but feel free to such up. Some of the other top mittens on yourself for self enrichment. So one of the most common our editors deflects and penance Chapman. And so what happens is that we have a flat poor, which is the mean movement and action. So it is tracked. De bean present findings downwards or is a bearish movement. So you have the flagpole followed by kinds of consolidation, which can be either Affleck or dependent. Affleck Consolidation is one way possible. One remains horizontal before continuing its decline, and dependent on condition is one where you know the price pulls back. Oh, sure, yeah, before continuing its downward trend. So how you treat flags and pennants is simple. You wait for consolidation and after the consolidation or cars, and uh huh when it reaches when you feel that the price is going to the bowel movement in price on about movement price will continue. You bought, uh, you sell or buy respect? Iffy mixes. He double talk body, double bottom pattern. You know what? Ah, pattern is one where you are. They are too similar Price level highs which I hit so well The first highs hit there's a pullback and in the second highest hit and it is another pullback. So what you do in this situation is after daddy, highest level dips below the who was left off the pullback. Now you can stop Oh, and start selling the assets and take. This s a selling opportunity. Double bottom is similar, but presents you a buying opportunity. Instead, I'm after the the price of what exceeds design shown you He invests his and shoulders and he's and showed us pattern, meanwhile, is slightly different. But there is a higher hit and suddenly, you know are right and left. Shooters are the inverse his and showed us is shown here on It's just really just the opposite off the hips and shoulders and hace how you are trade using the this pattern is that once again, once the price level Big South off the neck, right rejected a resistance level or a support level. So is a supporter of all this. Please have instead level in this case. So once it breaks out of it, then you sell or you buy respectively. Finally, the last one are recovering. Today is the rising and falling legis. So a rising and falling, which is a period of consolidation after a car, strong prices when almost all words so, um usually arising, which occurs after a strong bearish movement concerned the past consolidates outwards. And after a breaks off his rich, you can get as a selling off facility with the continua continual bearish movement downwards. Uh, you falling, which is similar after a strong, um strong. At what price movement? There is a falling which consolidation, period. And once it breaks off this pattern, you can get some buying opportunity. So that's about it on. I'll see you in the next lesson. 18. Technical Analysis & Strategy: everyone. We're coming near to the end of the costs, and I'll be covering the off the final essence on incorporating technical analysis now that we've learned throughout the costs into all trading strategies. And it's probably the most important lesson shot the costs as far. So, um, how can you apply Tencor analysis into your strategy you can. Firstly, one way to do it is that you can use it as a pre screening criteria, especially if you are into treating off stocks. For instance, right, there are so many stocks in a certain given exchange and if you are treated in multiple exchanges around the world, Uh, no. There are so many possible stock, so many possible treating opportunities. Andi. It's really hard to manually one by one or true each and every charts and identify pomposity opportunities manually. So one way you can use think analysis is having software, and in putting certain our criteria toe help pre screen some of the stocks that you will look at personally. So pre screening criteria, for example, can include OSI. Only one stops within our side, and more than 70 or less than 30 for instance, uh, are only you want to look at stocks with DDX off more than of less than 20 or seeing more than 50 for instance, S O criteria ideas can help you narrow down the stops to stock. So if you are possibly interested to treat it with a second advisor like if instead, you shouldn't overlook your chart. I know that it is too costly cover. Look, we've covered a lot off different technical indicators and technical tools, but you shouldn't at all of them into us into your single chart, and we just get messy and make you more confused. What you can do instead is to select indicators or tools, which you'll find that you worked best with. So it requires some trial and error and experimenting on and after finding indicators, which you feel that you can treat best with they are most comfortable with the indicators that you understand the best. Um, just pick Northview and I use them in your strategy, rather than using the many, many different tools that you have. We sent it to you through this course, and another thing to remember is that indicators are not prescriptive. They're, and they're simply guides or tools. So this means that if there is a buy signal or a cell signal created by an indicator, it is not necessarily right. No. In in fact, in many cases, indicators produce and a nickel and keep has produced a lot of false signals buying or selling signals. We should cause you to lose money and new streets. Ah, and in fact, even if you use multiple indicators at the same time, sometimes you know is that different indicators can give opposing signals. One indicator can be telling you to buy the under indicator can be telling you to sell at any point at the same point in time. Ah, and recognizing this, you realize that technical analysis is really much more off oxford it in an exit signs. So you have to use your judgment, uh, on whether to follow some of the signals that are showing based on indicators that you use , So you simply just use them as a guy you used MSC are prescriptive are, uh, something that's prescriptive, that you must follow the signal for the command. You know, it's just a guy. So how can you use in your strategy? Um, I recommended you always look at fundamentals and drivers off price movement. Auto technical analysis is useful. I think it was him. Overall, we all can agree that fundamentals is what drives price movement up or down. And you have to look at our fundamentals if you want to tree successfully on consistently in the long term. So one of push you can uses use fundamentals to decide. But it's a bio cell, Um, and used and going Valassis off. Uh, and shorter time period charts Farm or identify a more favorable entry or exit point Well, when you want bio when you're on a cell. So that's one of Portia. Second approach some people use is that, um, the Houston go analysis to identify treat a passionate ease on in. But at the same time, there still conscious off the fundamental background and context such that they are treats don't contradict fundamentals. For instance, if the fundamental suggested are the price off ABC Stop is going to increase in Nixa about the technical indicator tells you to sell, you might not want to sell this stop exactly because, you know, because that signal goes against the understanding, your understanding off the fundamentals. That approach is to use fundamentals with technical analysis concurrently meaning that, for instance, when you see the price movement hitting a support or resistance line, you can use fundamental analysis to to get a better idea off. Weather is likely going to break out off the support or resistance line. Or is it likely to about and off course, you can create your own special approach in terms of how to how to incorporate this. A technical indicators and tools into your strategy. Yeah, about overall in pricing, off, experimenting and, um, Indian, you might find it. And go on now, this is not your cup of tea at all on, and you might not in my choose not to use it. But I believe that it is important to understand the suspect off treating and investing. And you know, just and if you don't use enough strategy, is good general knowledge. Given that you're in this field, I'll see you in the next lesson. 19. Recap & Class Project: Hi, everyone. Welcome to the last lesson of the course where we'll give a shot recap in. I'll show you the class projects. So it is cause we have poverty. Theoretical foundations covering the efficient market hypothesis is we have covered the basics of Japanese candlesticks and a Welsh and supporting resistance never went through a whole range of different technical in the keepers. And then we moved onto common trap patterns that you can see on identify, cannot see charts and finally learning how to incorporate this when you've learned into your strategies. So eso for a class project. It's really simple. You can just pick one off any of these tree assignments to do so. One thing can do is you can screenshot images off a treat. Then you have me. It can be a life or practice count, meaning like you can be people treating we think money, but just screen shot an image off the tree and show and explain how you incorporate that something of learned in this costs regarding chemical analysis into your strategy, deciding when to buy or went to sell. For instance, Second assignment can do is to screen shot chart pattern you identify on last assignment that you can do is to share technical indicator, that pattern or strategy, that this little technical analysis that is not included in this course I hope that this class sports that would get you started on applying what you've learned and, you know, create a community off learning together. I thank you so much for staying with me trout, this course and our I hope you continue to be me in future causes chairs and happy treating Slash investing.