TA UKspreadbetting course

TA UKspreadbetting course

1. Candlestick patterns

   • Main
     • Doji
       • Same or very close opening and closing price.
     • Shaven top/bottom
       • If the opening was the lowest price or viceversa
   • Reversal
     • Hanging man/shooting star
       • short body with very long downwards wick on an uptrend,
     • Hammer/inverted
       • short body with very long downwards wick on a downtrend
     • Engulfing
       • The body of the second candlestick must totally engulf the body of the first.
   • Should be used in context and with other tools

2. Indicators

   • Moving Averages
     • Characteristics
       • The average price of a stock or market over a specified period of time.
     • 9, 10, 13, 10, 20, 30, 50, 100, 200
       • Most common time periods
     • Types
       • SImple
         • Normal average
       • Exponential
         • Recent price is more valuable
       • Weighted
         • Uses other factor like volume
   • Oscillators
     • RSI
       • Compares price with last 14 prices
         • Oversold/overbought
     • MACD
       • relationship between two moving averages of a security’s price (13, 26 EMA)
         • Trend-follower momentum
     • CCI
       • Compares price with moving average of price
     • Stochastics
       • relationship between an issue's closing price and its price range over a predetermined period.
     • Indicator that Oscillate in between a rage
   • Volume-based
     • Usually derived by volume and price
       • OBV, Chaikin, Klinger, VPTA¿ MFI¿ NVI

3. More and Ichimoku

   • Ichimoku
     • price above cloud, bullish, price below cloud, bearish, price inside cloud, transition or stagnation.
       • only works in a definite trend
     • Composed of five lines: 9,26, 52 MA and average of the MAs
   • Other
     • Cycles
       • Kondratieff, presidential, season & commodity Cycles
     • Elliot wave
       • 5-wave advance followed by a 3-wave decline
     • Fibonacci
       • Using the key Fibonacci ratios to find possible s/r

4. Basics

   • TA is Analyze market action: price & volume to predict future movements of price.
   • Trend
     • Phases
       • Accumulation
       • Public
       • Distribution
     • Up, down or sideways
     • Types of movem
       • Primary (12-30m)
       • Secondary (1-3m)
       • FLuctuation (5-20days)
   • VOlume
     • The amount of shares traded on a specific time (days)
       • Strong volume indicates strength of a move and will confirm patterns
         • Usually, precedes price
           • VPT, OBV, RSI VOL, MFI, NVI
       • Indicates interest on the asset
   • Support/resistance
     • An area where buying/selling preassue has made price reverse
       • The longer and most times held, the more reliable
         • Look for medium and long term s/r