Technical Analysis for Traders - Concise guide to picking direction.

32
An introduction to PICKING DIRECTION circle traders

description

As Traders, it’s important to have tools to help you to determine which direction the market is heading. When we can form a view of direction, we can then identify trading opportunities and choose a strategy to help profit from the movement. To do this, we use Technical Analysis. Technical analysis is the interpretation of the signals the market gives us, such as patterns, trends and price movements. Whether you’re a beginner or an experienced trader, coming to terms with technical analysis is an essential part of your trading plan. Learn more about our trading education programs bu visiting our website: http://traderscircle.com.au/

Transcript of Technical Analysis for Traders - Concise guide to picking direction.

Page 1: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

An introduction to

PICKING DIRECTION

circletraders

Page 2: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

Most trading decisions are made by understanding the direction of the underlying asset.

Page 3: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

There are two main forms of price movement analysis…

Page 4: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

Technical Analysis

Fundamental Analysis

Page 5: Technical Analysis for Traders - Concise guide to picking direction.

In a nutshell, technical looks at price and fundamental

looks at value.

Page 6: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

Technical Analysis considers:

Price

Current price

Historical price

Price trends & patterns

Page 7: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

Technical analysis is looking at the price, without taking into consideration what the company is and does.

Page 8: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

Fundamental Analysis considers:

Value

Company results

Industry reports

Product/service demand

Page 9: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

Traders tend to use technical

analysis to make decisions.

Why?

Page 10: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

Technical analysts believe past price movements and sentiment can give insight into future movements.

Page 11: Technical Analysis for Traders - Concise guide to picking direction.

We analyse the price by using charts.

Lorem

Ipsum

Dolor

Page 12: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

Charts visually represent the price movement of a stock.

Page 13: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

These movements can allow traders to interpret direction through patterns and formations.

Page 14: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

To interpret a chart, traders first determine where support & resistance are...

Page 15: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

Support is the lowest price traders are willing to sell before the buyers come in and start buying the stock.

Support

Page 16: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

Resistance is the highest price traders are willing to buy before the sellers come in and start selling the stock.

Resistance

Page 17: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

The trend is the overall direction of the stock over a longer period of time.

Trend

Page 18: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

Sometimes a stock moves neither up nor down, but channels between its support and resistance.

Channel

Page 19: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

Technical analysts look at different charts depending on what they need to know.

Page 20: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

Open High Low Close Chart The daily OHLC price bar represents one day of trading.

Page 21: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

A closer look at the OHLC price bar...

Highest Price

Close (Current Price)

Lowest Price

Open Price

Page 22: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

Candlesticks Charts show the same information as OHLC, but highlight the relationship between opening and closing prices.

Page 23: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

They show a clearer picture of who is in control of the stock, and reveal patterns that other charts don’t show.

Page 24: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

A closer look at candlesticks...

Highest price Highest priceClosing price

Closing priceOpening price

Opening price

Lowest price Lowest price

Page 25: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

Line charts are a simple way of viewing price movement, and are helpful to identify support, resistance and the overall trend.

Page 26: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

By using technical analysis, you can look at price movement objectively...

Page 27: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

And develop a systematic and methodical approach to picking direction.

Page 28: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

But ensure that you understand and practise it before using real money.

Page 29: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

Would you like to learn how a professional trader uses Technical Analysis to pick direction?

Page 30: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

Register your details to learn more about our trading courses.

Learn the step-by-step approach a professional trader uses to pick direction...

Page 31: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

Warnings and important information.Any advice contained in this communication is general only and does not consider your objectives, financial situation or needs, and you should consider whether it’s appropriate for you. If you are thinking about acquiring a financial product, you should consider our Financial Services Guide (FSG) at www.traderscircle.com.au and the relevant Product Disclosure Statement (if there is one available) first.

Trading options is not suitable for everyone. There is a risk that you can lose more than the value of a trade or its underlying assets. You should only act on our recommendations if you are confident that you fully understand what you are doing.

Past returns do not reflect future returns, and it is also possible to make significant losses. We employ expert traders and use strategies that maximise returns and minimise risk. However, there is always a risk of loss when trading and investing. This is general information, and is not prepared for your specific investment objectives, financial situation or needs. Consult a licensed investment adviser before making investment decisions. TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041.

Page 32: Technical Analysis for Traders - Concise guide to picking direction.

circletradersTradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

Register your details to learn more about our trading courses.

Learn the step-by-step approach a professional trader uses to pick direction...