Technical Analysis

User Guide
August 2010
 Technical Analysis User Guide

Table of Contents
Table of Contents .........................................................................................................2
Technical Analysis.........................................................................................................3
Introduction ..............................................................................................................3
A. File Options .....................................................................................................5
B. Scrolling Text Message Area ..............................................................................6
C. Chart Types .....................................................................................................6
D. Chart by Timescale View ...................................................................................8
E. Chart Magnifier ................................................................................................9
F. Adjust Price .....................................................................................................9
G. Chart View Layout ............................................................................................9
H. Trading Options.............................................................................................. 11
I. Drawing & Annotation Tools ............................................................................. 12
J. Technical Indicators ........................................................................................ 13

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 Technical Analysis User Guide

Technical Analysis
Maybank Group is pleased to provide you, Technical Analysis, another valued added service
which will facilitate you in making the best investment decisions. It is a method of evaluating
securities by analyzing trading statistics generated by market activity, such as past prices and
volume. In Technical analysis, it is not about the security's intrinsic value of a company or a
commodity but instead charts and other tools are used to identify patterns that can suggest
future trading activity. It is our hope that you will make full use of the facility given based on
the guidelines listed below.

Introduction
The figure below is the overall functions and views of the Technical Analysis screen. As
explained, below are the descriptions related to this screen beginning with chart viewing
selection followed by each of the labelled items.

B C D E F G H

Scrolling Text Message area Scrolling Text Message area Scrolling Text Me
A

I 1

J
3

Item Description

1 Original chart displayed once any stock is selected for Technical Analysis

2 An example of OBV option selected from Technical Indicator tools

3 Stochastic %K and %D option selected from Technical Indicator tools

A File Options

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 Technical Analysis User Guide

B Scrolling Text Area Message

C Chart Types

D Chart by Time Scale View

E Chart Magnifier

F Adjust Price

G Chart View Layout

H Trading Options

I Drawing & Annotation Tools

J Technical Indicators

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 Technical Analysis User Guide

A. File Options
You can use two available selections in order to open existing .dat format file, or to save your
current viewing.

To open existing .dat format

file: From the menu bar, click
the Open Folder icon as shown
in the next figure.

Locate the existing file location.

Click Open. For example, see
next figure. Once Ramunia.dat
file is opened, it will replace
current chart view.

To save the current chart view

or analyzed results: From the
menu bar, click the Save File
icon as shown in the next
figure.

Type in the File Name or

select from File Name list
based on previous file name
used. Select from Save as type
(default is as *.dat). Click
Save when done.

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 Technical Analysis User Guide

B. Scrolling Text Message Area

This area is for the purpose to display important messages or announcements from Maybank.

C. Chart Types
Consist of three charts viewing types that are Bar Chart, Line Chart and Candlestick Chart.

Viewing Different Chart Types

Clicking any of the icons from this group will change the displays of the chart of current
window.

Bar Chart
Bar Chart graphs the open, high, low, and last prices for a specific trading session over a
given period of time.

To view chart in Bar Chart format:

From the menu bar, click the Bar
Chart icon as shown in the next
figure.

Current window will display the

chart in a bar chart format.

Line Chart
Line Chart represents only the closing prices over a set period of time. The line is formed by
connecting the closing prices over the time frame.

To view chart in Line Chart

format: From the menu bar, click
the Line Chart icon as shown in
the next figure.

Current window will display the

chart in line chart format.

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 Technical Analysis User Guide

Candlestick Chart
Candlestick charts provide a quick visual picture of the relationship between opening and
closing prices and their relative strengths or weaknesses, especially for extended periods.

To view chart in Candlestick Chart

format: From the menu bar, click
the Candlestick Chart icon as
shown in the next figure.

Current window will display the

chart in a Candlestick chart format.

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 Technical Analysis User Guide

D. Chart by Timescale View

Consists of 6 types chart viewing based on timescale starting from daily (today), weekly (till
today), monthly (till today), hourly (one hour), 15 minutes and as detailed down as 5 minutes.
Next, is the example if you select Weekly Chart view.

To view weekly (including todays)

chart: From the menu bar, click the
Weekly Chart icon as shown in the
next figure.

Week A

Notice that each bar represents their

respective week. Written date is
Week A
every Monday of the week. For
example, Week A begins on 6
November 2006 while week after,
Week B began on 13 November
2006. Week B

Week B

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 Technical Analysis User Guide

E. Chart Magnifier
Allows you to zoom in (enlarge) and zoom out (reduce) the size of the chart. It also provides
a zoom plus option for specific area.

Next figure shows how the Zoom Plus magnifier functions.

Enlarged
zoom result

Selected
zoom area

Point to your preferred area for which the Zoom Plus magnifier should apply on.

F. Adjust Price
This option enables users to make adjustment to the preferred stocks price. Normally, stocks
which have Corporate Action issues will be have price adjustment.

G. Chart View Layout

The view layout enables users to view different indicator on a different page. Advanced user
has six views to choose from while standard user has only two. The last layout will be used
for comparison between Stock and Index (for advanced user). You will know you are at which
view from looking at the bigger and Cyan in colour of the layout digits selection.

To select view layout format, click

on any 6 digit numbers displayed.
Default layout is layout no. 1.

Note: Standard users will be

configured with 2 layouts that are
layout 1 & 2.

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 Technical Analysis User Guide

Selected layout is from

layout item no. 1.

For example, selected layout is layout number 1.

Selecting Layout number 6 will

bring you to index/stock
comparison view.
At the below area of the layout,
you may click on the Index/Stock
name in order to compare with
other indices/stocks.

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 Technical Analysis User Guide

Selected layout is from

Scrolling Text Message area Scrolling Text Messagelayout
area Scrolling
item no. Text
6. Me

Select Type from 1 and then select Indices or Stock name from list in 2 . For example,
current selection is from Indices Type named FBM KLCI.

H. Trading Options
Consist of online Buy and Sell options for you to choose once you are satisfied with the
analysis performed for the selected stock.

Click Buy to proceed with buying of the

selected stock

Click Sell to proceed with selling of the

selected stock

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 Technical Analysis User Guide

I. Drawing & Annotation Tools

On the left panel of the Technical Analysis window is the Drawing & Annotation Tools. It
consists of Fibonacci style chart drawing tools such as Fibonacci Retracements, Fibonacci Fans,
Fibonacci Time Zones and also regular drawing tools such as Trend and Horizontal Lines,
Ellipses, Text Notes and etc. Just click any of these tools and then drag it on the chart to view
the results.

Fibonacci
Leonardo Fibonacci was a thirteenth-century Italian mathematician who discovered the
significance and unique properties of a simple number series, in which each numeral is added
to the previous to create the next one in the series: 0, 1, 1, 2, 3, 5, 8, 13, 21, etc. Fibonacci
numbers, and more significantly the ratio of those numbers to each other, can be found
throughout nature and cycles. Fibonacci ratios are used in technical analysis to predict
retracement areas during pullbacks, as well as targets, called extensions, for projected price
moves.

Fibonacci Retracements Fibonacci Fans

Fibonacci Time Zones Fibonacci Arc

Basic Drawing Tools

Linear Regression Line Erase All

Fibonacci Retracements
Horizontal line that divide the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%,
50%, 61.8% and 100%.
Fibonacci Time Zones
A series of vertical lines that correspond to the sequence of numbers known as Fibonacci
numbers. Fibonacci numbers are a sequence of numbers where each successive number is
the sum of the two previous numbers.
Linear Regression Line
A Linear Regression Line is a straight line that best fits the prices between a starting price
point and an ending price point. The Linear Regression Line is mainly used to determine
trend direction.
Fibonacci Fans
Fan lines that divide the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%,
61.8% and 100%.
Fibonacci Arc
Curve lines that intersect trend line at the key Fibonacci levels of 23.6%, 38.2% and 61.8%.
Basic Drawing Tools
Consist of horizontal and vertical line, ellipse, linear line, font, up and down arrows and also
square shape
Erase All
To remove all the previously inserted drawing tools

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 Technical Analysis User Guide

Technical Indicators
These indicators will provide a more detail analysis technically where it will involve
mathematical calculation and scientific formula calculation. Currently there are 11 options
available namely as SMA (Simple Moving Average), EMA (Exponential Moving Average),
MACD / MACD Histogram, RSI, Stochastic, OBV, Bollinger Bands, Volume and Parabolic. The
RSI and Volume are set as default Technical Indicators for selected chart that you choose to
analyze.

Simple Moving
Average 1& 2 Exponential Moving
Average 1& 2
Bollinger Bands
Parabolic
MACD
KD (Stochastic)
RSI
OBV
Volume
Indicator Settings

Simple Moving Average

A simple, or arithmetic, moving average that is calculated by adding the closing price of the
security for a number of time periods and then dividing this total by the number of time
periods. In other words, this is the average stock price over a certain period of time.

Bollinger Bands
An indicator used to compare volatility and relative price levels over a specified time period.
Three bands are plotted: a simple moving average, an upper band of the simple moving
average plus two standard deviations, and a lower band of the simple moving average minus
two standard deviations. When the markets become more volatile, the bands widen, or move
farther away from the average. When the markets are less volatile, the bands contract, or
move closer to the average.

MACD
MACD analysis uses three moving averages, often exponential. Two of them are based on
the number of price periods used and the third is an average of the difference between the
two moving averages. The difference between the readings of the two moving averages is
usually shown as a histogram, while the average of that difference is shown as a moving
average line plotted on top of the histogram. An important part of MACD analysis is how its
movements compare with price movements to determine strength or weakness in the
market.

RSI
A technical momentum indicator that compares the magnitude of recent gains to recent
losses in an attempt to determine overbought and oversold conditions of an asset. It
compares periods with up closes with periods that have down closes to produce an index
reading reflecting the strength of price changes on a scale of 0 to 100. It is an indicator that
shows overbought or oversold technical conditions.

Volume
The number of shares or contracts traded in a security or an entire market during a given
period of time. Volume is an important indicator in technical analysis as it is used as a guide
to identify market activity for a stock or index as to whether it shows supply or demand.

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 Technical Analysis User Guide

Exponential Moving Average

A type of moving average that is similar to a simple moving average, except that more
weight is given to the latest data. This type of moving average reacts faster to recent price
changes than a simple moving average. The 12- and 26-day EMAs are the most
popular short-term averages, and they are used to create indicators like the moving average
convergence divergence (MACD) and the percentage price oscillator (PPO).

Drawing & Annotation Eraser

To remove the previously inserted drawing tools.

Parabolic
A technical analysis strategy that uses trailing stops and a reverse method called stop-and-
reversal (SAR) to pinpoint entry and exit points.

KD (Stochastic)
A technical momentum indicator that compares a security's closing price to its price range
over a given time period. Stochastics measures the closing price relative to the low of the
range for a selected period to indicate rising or falling momentum, providing trading buy (or
sell) signals when its lines cross into overbought or oversold territory.

OBV
A method used in technical analysis to detect momentum, the calculation of which relates
volume to price change. OBV provides a running total of volume and shows whether this
volume is flowing in or out of a given security. OBV attempts to detect when a financial
instrument (stock, bond, etc.) is being accumulated by a large number of buyers or sold by
many sellers.

Indicator Settings
Parameter settings for technical indicators.

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