Jun 2019

Technical Analysis 101

Contents

Module 1 Introduction to Technical Analysis, 2

Module 2 Chart Construction, 9
Module 3 Candlestick Chart, 15
Module 4 Chart Patterns, 25
Module 5 Basic Concepts of Trend, 32
Module 6 Volume, 40
Module 7 Moving Averages, 47
Module 8 Oscillators, 54
Module 9 Ending with Technical Checklist, 60

Disclaimer
This presentation is being issued solely for information purposes. This presentation does not contain all of the information required by a party to evaluate the
prospects of participating or utilizing the proposed financial products. Potential participants must conduct their own investigations and analysis and rely on the
results of such investigation in coming up with a decision to participate in any of the proposed financial products. The data and information presented and included
in this presentation do not purport to be complete and exhaustive. They have not been independently verified as to their veracity and timeliness. BDO Nomura
Securities, Inc., including their respective allied entities, as well as their respective agents, advisers, directors, officers, employees or representatives make no
warranty or representation, express or implied as to the accuracy or completeness of the contents of the presentation. This disclaimer extends to any statements,
opinions or conclusions contained in, or any omissions from, the presentation or in respect or in respect of written or oral communications transmitted or otherwise
made available to the prospective participants, and no representation or warranty is made in respect of any such statements, opinions or conclusions. The contents
of this presentation are strictly private and confidential. Accordingly, except with the prior written consent of BDO Nomura Securities, Inc., the information contained
in the presentation must be held in complete confidence.
2
What is Technical Analysis (TA)?

Technical Analysis (TA) is a method of analysis

for forecasting the direction of prices through the
study of past market data, primarily price and
volume.

- trading methodology used to identify trading

opportunities and evaluate investments

- Done by analyzing statistical trends such as

price movements, volume and other charting
tools

- to determine the potential profitability of

buying a specific stock and the underlying
risks associated with engaging in such a trade

3
History & Development

Technical analysis has been used for centuries. In the 17th C., accounts of charting were seen during
the "Tulip Mania" trend, and while Munehisa Homma was gathering his candlestick charts to amass a
fortune while trading rice in Japan in the 18th C. However, it was Dow theory (based on the combined
works of Charles Dow in the late 19th C.) that laid the foundations for modern technical analysis.

Munehisa Homma
(1724 - 1803) was a rice merchant from Sakata, Japan who traded in the Dojima
Rice market in Osaka during the Tokugawa Shogunate. He is sometimes
considered to be the father of the candlestick chart.

Charles Henry Dow

(1851 - 1902) laid the basic foundation for modern day technical analysis. The
Dow theory is a theory that states when the market is in an upward trend if one
of its averages (industrial or transportation) goes above a previous important
high and is accompanied or followed by a similar advance in the other average.

Source: Technical Analysis of the Futures Market, John J Murphy

Timeless Techniques for Trading Stocks and Futures, Gregory L. Morris

4
Difference between FA and TA

Fundamental Analysis (FA) Technical Analysis (TA)

FA uses economic data, historical financial TA highly depends on current market

information found in financial statements, financial psychology and investor sentiment in choosing
projections to determine intrinsic or fair value of a stock.
the company.

Fundamental Technical
Data Financial Statements Charts

Focus Quantitative & Qualitative factors Price & Volume

Term Long/Middle-term approach Short/Middle-term approach

Function Investing Trading

5
3 Principles of TA

1. Market action discounts everything

The price of an asset includes all known news, whether it be fundamental (such as a company’s
financial results), political, economic, psychological, or otherwise.

2. Prices move in trends

Technical analysts believe that prices move in short-, medium-, and long-term trends. In other words, a
stock price is more likely to continue a past trend than move erratically. Most technical trading
strategies are based on this assumption.

3. History repeats itself

Price movements can be attributed to market psychology, and market participants react in a consistent
manner to market stimuli over time. These price patterns become repetitive over time and across asset
classes.

Source: Technical Analysis of the Futures Market, John J Murphy

6
Where can TA be used?

Technical analysis can be used on any security with historical trading data. This includes stocks,
futures, commodities, bonds, currencies, and other securities.

- TA has the adaptability to any trading medium and time dimension.

- The technician can concentrate attention and resources in markets that display strong trending
tendencies and choose to ignore the rest.

Usability Weakness
1. Clarify a current stock position 1. Overlook important economic indicators
2. Anticipate turning trend point 2. Difficulty in handling many analysis
3. Know trade timing methods and too much information
4. Forecasts potential future price action 3. Unable to count on expected value
based on historical price behavior 4. Subjective analysis and personal biases
(especially the start of a new trend)

7
Overview of Technical Indicators

Trend Follow Non-Trend Follow Volume Other

Time Series Counter Trend

Momentum RSI Volume Ratio Ichimoku

ROC DMI Counter Clockwise Fibonacci

Curve
Kagi Chart Stochastic
Parabolic Oscillator

Moving Average RCI

Psychological Line
Ratio to Moving Average
Pivot Point
Envelope
MACD
Bollinger Bands

Non-Time Series

New Price Ashi

Point Figure 8
Contents

Module 1 Introduction to Technical Analysis, 2

Module 2 Chart Construction, 9
Module 3 Candlestick Chart, 15
Module 4 Chart Patterns, 25
Module 5 Basic Concepts of Trend, 32
Module 6 Volume, 40
Module 7 Moving Averages, 47
Module 8 Oscillators, 54
Module 9 Ending with Technical Checklist, 60

9
Types of Charts

3 main types of charts used in technical analysis:

Line Chart Bar Chart Candlestick Chart

10
Line Chart

A line chart is the most basic chart type. It connects a series of data points with a line and is used to
monitor closing prices which are most important in stock data, compared to the high and low for the day.

2017 2018 2019

11
Bar Chart

A bar chart shows multiple price bars over time. Each bar shows how the price moved over a specified
period of time and shows a price bar for each day. Each bar typically shows the open, high, low, and
close (OHLC) prices for that period.

High High
Close Open

Open Close
Low Low
(Bullish) (Bearish)

2017 2018 2019

12
Candlestick Chart

A candlestick chart is similar to bar charts in that they show the opening, closing, high, and low
prices for each period. However, a key difference is that candlestick charts have a wide “body” between
the opening and closing prices.

2017 2018 2019

Candlesticks are not only a type of chart but are also used for pattern recognition.
A combination of candlesticks can reveal market sentiment, turning points in the market, and also
continuation patterns. Please continue for further information.
13
Chart Timeframes

The most popular timeframes are daily charts, with the closing price being the most important
information. Many retail traders use daily charts to look for 2–3 month trends. Meanwhile, longer-term
investors such as asset managers and pension funds prefer weekly charts to find longer-term trends
and reduce the amount of short-term volatility.

Daily Chart Weekly Chart

Time Details
Scale
Intraday Chart drawn for a time period
within a day
Daily Chart drawn using daily
open/high/low/close data
Weekly Chart drawn using weekly
open/high/low/close data
Monthly Chart drawn using monthly
open/high/low/close data
Mon Tue Wed Thu Fri 1 week

14
Contents

Module 1 Introduction to Technical Analysis, 2

Module 2 Chart Construction, 9
Module 3 Candlestick Chart, 15
Module 4 Chart Patterns, 25
Module 5 Basic Concepts of Trend, 32
Module 6 Volume, 40
Module 7 Moving Averages, 47
Module 8 Oscillators, 54
Module 9 Ending with Technical Checklist, 60

15
 Candlestick Basics

A candlestick chart is a chart that displays the high, low, opening and closing prices of a stock
or currency for a specific period.

High Price
High (H)

Closing
Price Close(C)

Opening
Price Open(O)

Low Price Low (L)

9:30am 12:00 13:30 15:30

Opening Closing

Source: Nomura 16
Candlestick Basics

Bullish Bearish
(White Candlestick) (Black Candlestick)

High Price High Price

Upper
Shadow
Closing Price Opening Price

Real
Body

Opening Price Closing Price

Lower
Shadow
Low Price Low Price

17
 Candlestick Basics

Long White/Black Candle Short White/Black Candle

Closing Opening
Price Price

C O

O C

Opening Closing
Price Price

⇒ Strong Trend ⇒ Weak Trend 18

16 Candlestick Patterns (Single candle- Bullish)

1. Hammer 2. Dragonfly Doji

No real body
Little to no upper shadow

Long lower shadow Long lower shadow

Bearish trend may be reversing

C
Small bullish body
Long upper shadow O

Long shadow
Little to no lower shadow

3. Inverted
4. Bullish Spinning Top 19
Hammer
16 Candlestick Patterns (Single candle- Bearish)

5. Hanging Man 6. Gravestone Doji

Little to no upper Long upper

shadow shadow

Long lower No real

shadow body

Bullish trend may be reversing

Long upper
shadow
Small bearish O
Body
Little to no lower C
shadow Long shadows

7. Shooting Star 8. Bearish Spinning Top 20

16 Candlestick Patterns (Two candles- Bullish)

9. Bullish Engulfing 10. Bullish Harami*

*Harami means
“pregnant” in Japanese

C O
Day 1 : Day 2 : Day 1 :
O Day 2 :
Smaller Bigger Bigger C Smaller
bearish bullish
body C body
bearish
O
bullish
body body
O C

Bearish trend may be reversing

O
C Day 2 :
50% Weak opening & close
above 50% of Day 1’s
Day 1 : Bearish body
Bearish
C
Lows at the
body
same level
O

21
11. Piercing Line 12. Tweezer Bottom
16 Candlestick Patterns (Two candles- Bearish)

13. Bearish Engulfing 14. Bearish Harami

O C
Day 1 : Day 2 :
Smaller C Day 1 : Day 2 :
Bigger Bigger O Smaller
bullish bearish bullish bearish
body O body C
body body
C O

Bullish trend may be reversing

Day 1 : O Day 2 :
Bullish Strong opening &
body C close below 50% of
Day 1’s bullish body
50%
C Highs at the
O same level

15. Dark Cloud cover 22

16. Tweezer Top
Advanced Patterns (3 or more candles- Bullish)
Three
Morning Star White Soldiers Rising Three Methods

Gap Gap

Bearish trend may be reversing

Gap

Gap

Gap

Bearish Three Gaps Triple Bottom 23

 Advanced Patterns (3 or more candles- Bearish)

Evening Star Three Black Claws Falling Three Methods

Gap Gap

Bullish trend may be reversing

Gap

Gap

Gap

Bullish Three Gaps Triple Top 24

Contents

Module 1 Introduction to Technical Analysis, 2

Module 2 Chart Construction, 9
Module 3 Candlestick Chart, 15
Module 4 Chart Patterns, 25
Module 5 Basic Concepts of Trend, 32
Module 6 Volume, 40
Module 7 Moving Averages, 47
Module 8 Oscillators, 54
Module 9 Ending with Technical Checklist, 60

25
15 Breakout Patterns (Reversal)

Neck Bullish
1. Double Bottom Line

*Same height
Neck Bullish
2. Inverted Head
and Shoulder Line

3. Falling Wedge Bullish

26 26
15 Breakout Patterns (Reversal)

4. Double Top Neck

Line Bearish

5. Head and Neck

Line Bearish
Shoulder *Same height

6. Rising Wedge Bearish

27 27
15 Breakout Patterns (Continuation)

Bullish 7. Falling Wedge

Bullish

8. Bullish Rectangle

Bullish
9. Bullish Pennant

28
15 Breakout Patterns (Continuation)

10. Rising Wedge

Bearish

11. Bearish Rectangle

Bearish

12. Bearish Pennant

Bearish

Source: Nomura 29
15 Breakout Patterns (Neutral)

13. Ascending 14. Descending 15. Symmetrical

Triangle Triangle Triangle

Bullish
Bullish Bullish

*Same height

Bearish Bearish
Bearish

30
 Price Gaps

A gap represents an area where no trading takes place.

Exhaustion Gap
- near the end of an uptrend

Measuring (Runaway) Gap

- the halfway point in a trend, still a
strong trend
Common Gap
- occurs in thinly traded markets, no
need for concern

Breakaway Gap
- occurs on heavy volume at the end of
the trending pattern and the beginning
of a significant market move
31
Contents

Module 1 Introduction to Technical Analysis, 2

Module 2 Chart Construction, 9
Module 3 Candlestick Chart, 15
Module 4 Chart Patterns, 25
Module 5 Basic Concepts of Trend, 32
Module 6 Volume, 40
Module 7 Moving Averages, 47
Module 8 Oscillators, 54
Module 9 Ending with Technical Checklist, 60

32
Three Directions

1. Uptrend
with ascending peaks
and troughs

2. Downtrend
with descending peak
and troughs

3. Sideways
with horizontal peaks
and troughs

33
Three Classifications

Ⅰ. Major Trend Ⅱ. Secondary Trend Ⅲ. Minor Trend

(>1 year) (3 weeks - Several months) (<2 or 3 weeks)
1-4 2-3 A-B-C

Ⅱ. Secondary Trend 4
2
B
A C
Ⅲ. Minor Trend
3 Ⅰ. Major Trend
1

34
Support and Resistance

Support: A level where buying interest is sufficiently strong to overcome selling pressure

Resistance: A level where selling pressure is sufficiently strong to overcome buying pressure

Resistance
Resistance
Resistance Support Resistance
Support
Support
Support

35
Support and Resistance
Buy at Support” and “Sell at Resistance”

A breakout is when prices pass through and stay through an area of support or resistance.

SELL
Resistance Resistance

SELL

Resistance Resistance Breakout

Support Support

BUY BUY

Support Support

BUY
36
Trend line & Channel line

Trend Line: A diagonal line between two or more price pivot points

Channel Line: A line drawn parallel to the Trend Line

Channel Line

Trend Line

37
Trend line & Channel line

Buy at Trend Line and Sell at Channel Line

BUY

Breakout

SELL
Channel Line
Failure

SELL

BUY
BUY

Trend Line
38
Retracement
A retracement is a temporary reversal in the direction of a stock's price, countering the prevailing trend.

200 Retracement

33% (1/3) Minimum retracement

150 50% (1/2) Common retracement

66% (2/3) Maximum retracement

100
39
Contents

Module 1 Introduction to Technical Analysis, 2

Module 2 Chart Construction, 9
Module 3 Candlestick Chart, 15
Module 4 Chart Patterns, 25
Module 5 Basic Concepts of Trend, 32
Module 6 Volume, 40
Module 7 Moving Averages, 47
Module 8 Oscillators, 54
Module 9 Ending with Technical Checklist, 60

40
Volume
The Volume is the amount of shares traded over a given time period, which is crucial information on
selling/buying of the stocks. Volume analysis is the technique of assessing the health of a trend based
on volume activity. The volume indicator is the most popular indicator used by market technicians.

Stock Price

Volume

41
Source: BDO Nomura
Volume Indications

A rise in volume indicates

- market participants are interested in seeing the price go higher in an uptrend and are willing to buy
higher in order to participate in the upcoming market action

- market participants are interested in seeing the price go lower in a downtrend and are willing to sell
lower in order to participate in the upcoming market action

A decline in volume indicates

- market participants are losing interest in seeing the price go higher in an uptrend and are more willing
to buy lower

- market participants are losing interest in seeing the price go lower in a downtrend and are more
willing to sell higher

42
 Volume Spike patterns

1. Preceding Pattern 2. Coinciding Pattern 3. Following Pattern

(Common Pattern)

Stock Price

Volume

Increasing in Volume Coinciding price rises and Increasing in Volume

before price rises increase in Volume after price rises

43
Stock Price and Volume

Outlook (Implication)
Stock Price Volume
Strong Trend
(Continued/Limited?)

Weak trend
(Already peaked?)

Strong Trend
(Continued decrease?)

Weak trend
(Near the bottom?)
44
 Market Cycle of Price and Volume

Counter Clockwise Curve

Warning
Stock Price
(5) Hold out on
Sell Buying
High (4)
(6)

(7) (3) Continue to

Continue
to Sell Buy

(8)
(2)
Hold out on
Selling (1) Buy

Observation
High
Low Volume 45
Volume Oscillators

Volume Moving Average (VMA)

is the simplest volume-based indicator. It is an average volume of a stock over a selected period of time.
VMA is used in charts to smoothen and describe a volume trend by filtering short term spikes and gaps.

On Balance Volume (OBV)

measures buying and selling pressure as a cumulative indicator that adds volume on up days and
subtracts volume on down days.

Accumulation Distribution Line

is a volume-based indicator designed to measure the cumulative flow of money into and out of a
security.

Chaikin Money Flow (CMF)

is used to measure Money Flow Volume over a set period of time. Money Flow Volume is a metric used
to measure the buying and selling pressure of a security for a single period.

46
Contents

Module 1 Introduction to Technical Analysis, 2

Module 2 Chart Construction, 9
Module 3 Candlestick Chart, 15
Module 4 Chart Patterns, 25
Module 5 Basic Concepts of Trend, 32
Module 6 Volume, 40
Module 7 Moving Averages, 47
Module 8 Oscillators, 54
Module 9 Ending with Technical Checklist, 60

47
What are Moving Averages?

Moving Averages (MA) are widely-used indicators which are used to identify trends, execute trades,
and act as support and resistance. MA is the price of a product averaged out over time, giving a
smoother line than individual prices that are more volatile due to short-term "noise". Long-term traders
often look at the 50-, 100- and 200-day SMA. Short term traders prefer the 5- and 20-day MA as these
represent a week and a month.

30

25

20

15

10

Moving Averages 12 months MA

5
24 months MA
60 months MA

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
48
3 types of Moving Averages

Simple Moving Average (SMA)

The SMA is by far the most common moving average. It simply takes the closing stock price and
averages it out over a period of time.

Weighted Moving Average (WMA)

The WMA puts more weight on the most recent data.

Exponentially Moving Average (EMA)

The EMA places greater weighing on the most recent data but it also considers the data set. This is a
rarely-used moving average that is very similar to a considerably long-term linearly weighted moving
average.

49
Moving Average Directions

Upward direction
>>BULL trend

Sideways direction
>>Sideway trend

Downward direction
>>BEAR trend

50
Golden/Death Cross

1. Golden Cross 2. Death Cross

>>BULLISH Signal >>BEARISH Signal

Long-term MA
Long-term MA (200-day MA)
(200-day MA) Short-term MA
(50-day MA)

Short-term MA
(50-day MA)

The 50-day MA crosses above the 200-day MA The 50-day MA crosses below the 200-day MA
(Entry Point) (Exit Point)

Source: Nomura 51
Moving Average and Stock Price

>>BUY signals

Stock Price is going up over MA Stock Price is going down to MA but rebounds
(MA is flat or in an upward trend) again (MA is upward trend)

MA

Stock Price

While MA is going down, Stock price goes down

While MA is going up, Stock price
drastically (Short term) then recovers
goes down and over MA

Source: Nomura 52
Moving Average and Stock Price

>>SELL signals

Stock price is going down below MA (MA is Stock price is going up towards MA but
flat or in a downward trend) falls down again (MA is downward trend)

While MA is going up, Stock price goes up

While MA is going down, Stock price goes
drastically (Short term) then falls
over and under MA

Source: Nomura 53
Contents

Module 1 Introduction to Technical Analysis, 2

Module 2 Chart Construction, 9
Module 3 Candlestick Chart, 15
Module 4 Chart Patterns, 25
Module 5 Basic Concepts of Trend, 32
Module 6 Volume, 40
Module 7 Moving Averages, 47
Module 8 Oscillators, 54
Module 9 Ending with Technical Checklist, 60

54
Oscillators

An oscillator is a secondary indicator that varies over time within a band. Oscillators are used to
discover short periods of overbought or oversold conditions. (e.g. RSI, Stochastics, MACD etc.)
- An oscillator is most useful when its value has reached an extreme reading near the upper or lower
end of its boundaries.
- A divergence between the oscillators and the price action when the oscillator is in an extreme position,
is usually an important indicator.
- Crossing of the zero line can be an important trading signal in the direction of the price trend.

Overbought

Oscillator (Zero Line)

Oversold
55
Relative Strength Index (RSI)

RSI, developed by J. Welles Wilder, measures the velocity of a stock price movement to identify
overbought and oversold conditions. Use RSI to recognize potential turning points to help make
entry/exit decisions. RSI values are calculated from closing prices.

RSI value falling below 30 RSI value rising above 70

- indicates an oversold condition - indicates an overbought condition
- buy signal triggered when indicator crosses 30 - sell signal triggered when indicator crosses 70

EXIT POINT
A
RSI = x 100%
A + B
A = Avg. of N-day up closes
B = Avg. of N-day down closes
ENTRY POINT

OVER BOUGHT
>70% Overbought

OVER SOLD <30% Oversold

56
Stochastics

Stochastics measure the velocity of a stock price movement to identify overbought and oversold
conditions. This indicator show the current price relative to highs & lows over a time period. In an
uptrend, markets tend to close near the high and in a down-trend they tend to close nearer to the lows.

Stochastic falling below 20 Stochastic rising above 80

- indicates an oversold condition - indicates an overbought condition
- buy signal triggered when %K goes over %D - sell signal triggered when %K goes below %D

Current Close - Lowest Low

%K = x 100
Highest High - Lowest Low
%D = 3-day SMA of %K

%K %D

>80% Overbought

<20% Oversold
57
MACD（Moving Average Convergence Divergence）

MACD is an indicator of the change in a stock's underlying price trend. The theory suggests that when a
price is trending, it is expected that speculative forces "test" the trend. MACD shows characteristics of
both a trending indicator and an oscillator. While the primary function is to identify turning points in a
trend, the level at which the signals occur determines the strength of the reading.

A. MACD MACD Line becomes downtrend

and falls below Signal Line = Bearish

B. MACD’s downtrend gets weak and goes

over Signal Line = Bullish
MACD Line
Histogram = MACD - Signal

Signal Line
A

B
Histogram
58
Bollinger Bands

Bollinger Bands are defined using the standard deviation from a Simple Moving Average (SMA). It plots
lines above and below the SMA at a specified number of standard deviations. It is used to identify periods
of high and low volatility, as well as periods when prices are at extreme and possibly unstable levels.
These bands become narrower during less volatile periods and wider during more volatile periods.

- Upper band acts as resistance

- Lower band acts as support

Moving Average Upper Band About 90% of price action occurs

between the two bands.
Any breakout above or below the
bands are a major event.

Lower Band

59
Contents

Module 1 Introduction to Technical Analysis, 2

Module 2 Chart Construction, 9
Module 3 Candlestick Chart, 15
Module 4 Chart Patterns, 25
Module 5 Basic Concepts of Trend, 32
Module 6 Volume, 40
Module 7 Moving Averages, 47
Module 8 Oscillators, 54
Module 9 Ending with Technical Checklist, 60

60
Risk Management in TA

Risk management is all about capital preservation.

Here are some other risk management trading "rules" taken from some of the most famous traders:

1. Let profits run and cut losses short.

2. Trade with the trend – go long in uptrends and short in downtrends.
3. Always use a stop-loss on every trade.
4. Don’t trade impulsively – have a plan, plan your work, and work your plan.
5. Employ at least a 3:1 risk-reward policy.
6. Know your target levels.
7. Never add to a losing position.
8. When adding to a winning trade (pyramiding) each successive layer should be smaller than before.
9. Work from the long-term charts for market direction, and close in on the shorter-term charts for
market timing.
10. Bear Market Corrections are faster and far more violent than Bull Market Corrections.
11. Avoid trading off the news headlines as news is usually already discounted into the price; instead,
trade the price action.
12. Technical analysis can identify the trend, entry levels, stop levels, and optimal prices for taking profit.

Source: The Handbook of Technical Analysis, Mark Andrew Lim

61
Technical Checklist

TA is a blend of many approaches. Each approach adds something to the analyst’s knowledge of the
market. Different approaches work better in certain market situations, the key is knowing which tools to
emphasize, and this comes with knowledge and experience.

The following Technical Checklist is provided to help the user touch all bases. The checklist is not all-
inclusive, but does contain the more important factors to keep in mind.
Technical Checklist
1. What is the direction of the main/sector indices?
2. What are the weekly and monthly continuation chart showing?
3. Are the major, intermediate, and minor trends up, down, or sideways?
4. Where are the important support and resistance levels?
5. Where are the important trend lines or channels?
6. Is volume confirming the price action?
7. Where are the 33%, 50% and 66% retracements?
8. Are there any price gaps and what type are they?
9. Are there any major reversal/continuation patterns visible?
10. What are the price objectives from those patterns?
11. Which way are the moving averages pointing?
12. Are the oscillators overbought or oversold?
13. Are any divergences apparent on the oscillators?
14. Are there any cycle tops or bottoms due?
15. Is the market showing right or left translation?

Source: Technical Analysis of the Future Markets, John J Murphy

62
Technical Checklist (continued)

After you’ve arrived at a bullish or bearish conclusion, ask yourself the following questions;

1. Which way will this market trend over the next 1-3 months?
2. Am I going to buy or sell this market?
3. How many shares will I trade?
4. How much am I prepared to risk if I’m wrong?
5. What is my profit objective?
6. Where will I enter the market?
7. What type of order will I use?
8. Where will I place my protective stop?

Going through the checklist won’t guarantee the right conclusions, it’s only meant to help you ask the
right questions. Asking the right questions is the surest way to finding the right answers. The keys to
successful trading are knowledge, discipline and patience. The final step is putting that plan of action
to work. Even though it won’t guarantee success, it will greatly increase the odds of winning in the
stock markets.

Source: The Handbook of Technical Analysis, Mark Andrew Lim

63
 Thank you.

Disclaimer
This presentation is being issued solely for information purposes. This presentation does not contain all of the information required by a party to evaluate the
prospects of participating or utilizing the proposed financial products. Potential participants must conduct their own investigations and analysis and rely on the
results of such investigation in coming up with a decision to participate in any of the proposed financial products. The data and information presented and included
in this presentation do not purport to be complete and exhaustive. They have not been independently verified as to their veracity and timeliness. BDO Nomura
Securities, Inc., including their respective allied entities, as well as their respective agents, advisers, directors, officers, employees or representatives make no
warranty or representation, express or implied as to the accuracy or completeness of the contents of the presentation. This disclaimer extends to any statements,
opinions or conclusions contained in, or any omissions from, the presentation or in respect or in respect of written or oral communications transmitted or otherwise
made available to the prospective participants, and no representation or warranty is made in respect of any such statements, opinions or conclusions. The contents
of this presentation are strictly private and confidential. Accordingly, except with the prior written consent of BDO Nomura Securities, Inc., the information contained
in the presentation must be held in complete confidence.
64