Post on 19-Dec-2015
Technical Analysis
By Ross KlostermanCommon Cents Investment Group
Agenda
• What is TA?• How do we utilize TA?• Sample indicators• Interactive exercise• Conclusion
What is Technical Analysis?
Forecasting of future financial price movements
Based on an examination of past price movements
Not absolute predictions about the future.
Can help investors anticipate what is "likely" to happen to prices over time
How is Technical Analysis used?
Utilize various charts
Understand different chart indicators
Some examples:
Charts
Charts
Sample Indicators
RSI- momentum oscillator that measures the speed and change of price movements
Moving Average Convergence/Divergence (MACD) – one of the simplest and most reliable indicators
Bollinger Bands – allows users to compare volatility and relative price levels over a period of time.
Sample Indicators
Support – price level at which demand is thought to be strong enough to prevent the price from declining further
Resistance – price level at which selling is thought to be strong enough to prevent the price from rising further
ALL charts at ANY point in time have BOTH a support and resistance
Just to see… I utilize every
indicator on this chart
Conclusion
– TA is NOT the end-all-be-all– Combine with FA can be a deadly combo–www.stockcharts.com–What are your questions? Would you
like me to give you my opinion on any stock?