Why technical Analysis ?

Content :-

Terms

Indicators (calculations, uses, parameters)

Methods to take position

Actual trading (live market practical, prediction)

TERMS :-

OPEN

CLOSE

HIGH

LOW

To take actual position

Calculation

To understand trend & its strength

TERMS USES

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Bullish Bar Stick :-

Close

Open

Close is higher than open

Low

High

Bearish Bar Stick :-

Close

Open

Close lower than open

High

Low

Japanese candle stick :-High

Low

Open

Close

Body of the candle

Green color candle = Bullish candle

Body of the candle

Open High

Low

Close

Japanese candle stick :-

Red color candle = Bearish candle

Forex time frames :-

Q M W D H4 H1 15 5

Most important chart for Forex Trading

Q M W D H4 H1 15 5

Chart co-relation :-

Very important for positional trades

Helps to take position

Not much reliable

Q M W D H4 H1 15 5

Very important for intraday trades

Helps to take position

Not much reliable

It is advised to also see daily chart parameters after looking at weekly and H4 chart.

Equity time frames :-

Q M W D H1 15 3 1

Most important chart for Equity Trading

Q M W D H1 15 3 1

Chart co-relation :-

Very important for positional trades

Helps to take position

Not much reliable

Q M W D H1 15 3 1

Very important for intraday trades

Helps to take position

It is advised to also see daily chart parameters after looking at weekly and H1 chart.

Not much reliable

Q and M

Weekly

W and Daily

Weekly

Daily

1 hour

Quarterly

1 hour

15 minutes

3 minutes

Weekly

All types of traders

Pure intraday trades

Swing trades( works well for

Nifty)

Investors and selection of

penny stocks

Higher Chart Main Chart Corresponding Lower Chart

Use

Support and Resistance :-

Support

Resistance

Point where investor is supposed to buy

Point where investor is supposed to sell

Support

Breakout

Resistance

Resistance

Support

Breakout

Resistance

Resistance

Support

Support

Resistance

Moving averages

Simple Moving Average (SMA)

Exponential Moving Average (EMA)

Weighted Moving Average (WMA)

Calculation of SMA :-

For SMA take a list of the closing price of a stock.

As we are going to calculate a 6 day SMA one is suppose to take the average of first 6 days

For example:-

The closing point for Nifty from 3rd July to 8th July are

5287.95 + 5320.55 + 5327.3 + 5316.95 + 5275.15 + 5345.35 = 5309.20 6

Here the SMA point is 5309.20

Similarly, SMA points from 8th July to 17th July are shown in the next slide.

Nifty Price 6 Day SMA

5287.955302.555327.3

5316.955275.155345.35 5309.2085306.3 5312.27

5235.25 5301.055227.25 5284.385197.25 5264.435192.85 5250.715216.3 5229.205242.7 5218.605205.1 5213.58

5177.95 5205.365128.2 5193.855109.6 5179.985043 5151.09

5099.85 5127.285199.8 5126.405229 5134.91

5240.5 5153.635227.75 5173.325215.7 5202.10

5282.55 5232.555336.7 5255.375338 5273.53

5322.95 5287.285320.4 5302.72

5000.000

5050.000

5100.000

5150.000

5200.000

5250.000

5300.000

5350.000

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Series1

Why E(6) and E(30)?

E(6)

E(30)

It helps to find Buy and Sell signal.

Sell signal Buy signal

It helps to find support and resistance :-