Basic, Advanced and F&O’s Technical

Analysis Workshop

By
Mr. V.Subba Reddy
SB – Angel Broking
AMFI Registered MF Distributor

By
Mr. M.Nagaraju
Trader

Mail Id: protraderst.sns@gmail.com,

Contact Numbers: +91 9441786858, +91 7981459901, +91 7288890111
 Common misconceptions about Trading

• Trading is easy (just follow the trend).

•
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Easy to double the money

• I can use all the leverage to make more money
• More trades mean more money.
• No one can earn money in trading (Market are gambling – so,
can’t make money)
• Screen time will help you become better
 Common misconceptions about Trading

• Stop loss hunting

•
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Higher time-frames are easier

• If I learn more, I can control my returns in the markets
• Experts make only profits and no losses –based on their SM posts
• There exists a method of trading that gives no loss
• You need vast knowledge to be a trader (Need Ph.D/MBA/Fancy
certifications/Super smart)
 Developing a trading system –practical approach

• Learn a concept like price action (different types), technical

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analysis(indicators) or any other market driven concept.

• Understand your availability during mkt hours and choose timeframe
wisely.
• Start with naked charts and move your way up with indicators (if any).
• No more than 2 indicators in the screen

Implications: Less than 3% of investors are in Profits in India.

 Developing a trading system –practical approach

• Create rules around the concept (after eyeballing 100s of charts) –clear
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entry and exit rules (lesser the number of rules, better it is).
• Test it for sample quarters (1 qtr per year is ideal –10+ years) and see if
it has an edge.
• More often than not, your rules will reflect your understanding of mkts
(Breakout vs pullback and reversal).
• Back test it for larger sample size once sample testing is over with.
• Create MM plan and start executing (taking the system live)

Implications: Less than 3% of investors are in Profits in India.

Conclusion
Conclusion
 What is price action trading ?

• Price action trading is a form of trading where trader takes trades based
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on only price movements.

• Price action traders don't typically concern themselves with "Why"
something happens.
• Price action traders strongly believe that true info comes from price
itself
• No need for lagging indicators and other fancy stuff.
• Various types: candlestick patterns, Price patterns. Moving averages
and price action strategy.
 Nifty and Sensex
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• NIFTY stands for National stock exchange FIFTY.

• Sensex stands for Sensitive Index
 Indian Stock Market
• Nifty (NSE) 50 stocks from 13 Sectors
• Sensex (BSE) 30 stocks
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Sector Representation of NIFTY Top Stocks Weightage in NIFTY

 Types of Analysis Stock Selection

• Fundamental Analysis • Which Stock?

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• Technical Analysis • What Price?

• Target Price?
• Time Frame?
• Stop Loss?
Volatility
 Plan of Action

TYPE DURATUION
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SKILL DEVELOPMENT 5 Weeks

PRACTICE AND ASSESSMENT 5 days on every topic

SELF PREPARATION & ASSITANCE 2 Months

PAPER TRADING 2 Month

PAPER TRADING ASSESSMENT Evaluation of your 2 months paper trading

START TRADING 1-Month Live trading with small qty. (amt: 5000/-)
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 What is Candlestick?
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High High
Upper Wick Upper Wick
Close Price Open Price

Real Body Real Body

Open Price Close Price

Lower Wick Lower Wick

Low Low

Bullish Candle Bearish Candle

SINGLE CANDLESTICKS
 Doji

High High High

Open Close
Close Open
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Open Close
High Low
Close Open
Low Low Low

Long Legged Doji Dragonfly Doji Gravestone Doji 4 Price Doji

Identification Criteria:
• Open and Close are almost equal.
• All Doji’s are Colourless.
• This is a Sign of Uncertainty.
• After Doji, look for the Next Pattern.
• Long Legged: Interpretation is Neutral.
• Dragonfly: Bullish Candle, Should form at Low.
• Gravestone: Bearish Candle, Should form at High.
 Hammer (Bullish Pattern)

Close High Open High

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Open Close

Low Low

Identification Criteria:
1. Down trend.
2. Lower Shadow at least twice as big with compared to Real Body.
3. Real Body is Bullish or Bearish. Better if Bullish.
4. Conformation candle must close above of the hammer candle.
 Inverted Hammer (Bullish Pattern)

High High
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Close Open
Open Low Close Low

Identification Criteria:

1. Down trend.
2. Upper Shadow at least twice as big with compared to Real Body.
3. Real body is Bullish or Bearish. Better if Bullish.
4. Conformation candle must close above of the Inverted Hammer (Close Price).
 Shooting Star (Bearish Pattern)

High High
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Close Open
Open Low Close Low

Identification Criteria:
1. Up trend.
2. Upper Shadow at least twice as big with compared to Real Body.
3. Real Body Bullish or Bearish. Better if Bearish.
4. Conformation candle must close below of the shooting star candle.
 Hanging Man (Bearish Pattern)

Close High Open High

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Open Close

Low Low

Identification Criteria:
1. Up trend.
2. Lower Shadow at least twice as big with compared to Real Body.
3. Real Body Bullish or Bearish. Better if Bearish.
4. Conformation Candle must close below of the Hanging Man (Close Price).
 Marabozu

Close High Open High

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Open Low Close Low

Green Marabozu Red Marabozu

Identification Criteria:
▪ Particular pattern should continue.
▪ Rare Candle.
DOUBLE CANDLESTICKS
 Bullish Piercing Pattern
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Mean

Identification Criteria:
1. Downtrend.
2. It continue the downtrend with Bearish Candle.
3. After Bearish candle in down trend, the next candle should open with Gap Down and it
continue with Bullish Candle.
4. Bullish candle must close the above 50% of previous bearish candle.
 Dark Cloud Cover
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Mean

Identification Criteria:
1. Uptrend.
2. It continue the uptrend with Bullish Candle.
3. After Bullish Candle in up trend, the next candle should open with Gap Up and it continue with
Bearish Candle.
4. Bearish candle must close the below 50% of previous bullish candle.
 Bullish Engulfing Pattern
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Identification Criteria:
1. Downtrend.
2. It continue the downtrend with Bearish Candle.
3. After Bearish candle in down trend, the next candle should open with Gap Down and it continue with
Bullish Candle.
4. Bullish candle must close the above of previous bearish candle (Open Price).
 Bearish Engulfing Pattern
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Identification Criteria:
1. Uptrend.
2. It continue the uptrend with Bullish Candle.
3. After Bullish candle in up trend, the next candle should open with Gap Up and it continue with Bearish
Candle.
4. Bearish candle must close the below of previous Bullish Candle (Close Price).
 Bullish Harami Pattern
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Identification Criteria:
1. Downtrend
2. It continue the downtrend with Bearish Candle.
3. After bearish candle in down trend, the next candle should open with Gap Up and it continue with Small
Bullish Candle.
4. Small bullish candle must close the below of previous bearish candle (Open Price).
 Bearish Harami Pattern
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Identification Criteria:
1. Uptrend.
2. It continue the uptrend with Bullish Candle.
3. After bullish candle in up trend, the next candle should open with Gap Down and it continue with
Small Bearish Candle.
4. Small Bearish Candle must close above of Previous Bullish Candle (Open Price).
 Morning Star & Morning Doji Star
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Morning Star Morning Doji Star

Identification Criteria:
1. Downtrend.
2. It continue the downtrend with Bearish Candle.
3. After bearish candle in down trend, the next candle should open with Gap Down and it should form
Small Bullish/Bearish (or Doji) candle.
4. Third candle must open with Gap Up and it continue with bullish candle.
5. The bullish candle must close the above 50% of first Bearish Candle.
 Evening Star & Evening Doji Star
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Evening Star Evening Doji Star

Identification Criteria:
1. Uptrend.
2. It continue the uptrend with Bullish Candle.
3. After bullish candle in up trend, the next candle should open with Gap Up and it should form Small
Bullish/Bearish (or Doji) Candle.
4. Third candle must open with Gap Down and it continue with bearish candle.
5. The bearish candle must close the below 50% of first Bullish Candle.
PRICE PATTERNS
Triangular Patterns
 Trendline

A Trend line is a straight line that connects two or more price points and
then extends into the future to act as a line of support or resistance.
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• Trend is your friend

• Don’t trade against trend
• Trendline also work for support & Resistance

UP trendline: Connect two bottoms and extend the line

Down trendline: Connect two tops and extend the line
Sideways: No movement in any direction
 Price Patterns

• BULLISH PATTERNS: Double Bottoms, Rounding Bottom, Inverted

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H&S, Bullish (Falling) Wedge, UP Flag, Ascending Triangle, Breakout About

Multiple Tops.

• BEARISH PATTERNS: Double Top, H&S, Bearish (Rising) Wedge,

Down Flag, Descending Triangle
 Double Bottom
▪ First bottom at the end of a downtrend
▪ After an up move market again retest the level (First bottom)
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▪ After second bottom green candle should form

▪ Measure Vertical distance from bottom level to highest point, Called this as A
▪ Target = Green candle bottom + A
▪ SL is below mean of the green candle
▪ Some tolerance allowed
▪ Risk reward should be at least 1:3
BULLISH PATTERNS
 Rounding Bottom

▪ Looks like semi circle

▪ If you found the rounding bottom after an decline, it will be good
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▪ If price rise above the starting point of most recent decline, where the
pattern started
▪ Measure Vertical distance from bottom level to that starting point, Called
this as A
▪ Target = Green candle bottom + A
▪ SL is below mean of the green candle
▪ Some tolerance allowed
▪ Risk reward should be at least 1:3
PRO TRADER TELUGU
 Inverted H&S

▪ This pattern should emerge at bottom

▪ price should close above the neckline
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▪ Measure Vertical distance from low of head to the neckline, Called this as A
▪ Target = Green candle bottom + A
▪ SL is below mean of the green candle
▪ Some tolerance allowed
▪ Risk reward should be at least 1:3
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 Bullish (Falling) Wedge
▪ This pattern form after the downtrend or it can form as a continuation
pattern
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▪ If found this pattern after an decline, it will be good

▪ Consolidation in a triangular shape
▪ When close above the wedge, you can go for the trade
▪ Measure Vertical distance from start of wedge to higher point of wedge,
Called this as A
▪ Target = Green candle bottom + A
▪ SL is below mean of the green candle
▪ Some tolerance allowed
▪ Risk reward should be at least 1:3
PRO TRADER TELUGU
 UP Flag
▪ This is a continuation pattern
▪ In this underline consolidate after an up move and underline again
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close above the consolidation

▪ This is a short term pattern
▪ Measure Vertical distance from start of pole to high point of the flag,
Called this as A
▪ Target = Green candle bottom + A
▪ SL is below mean of the green candle
▪ Some tolerance allowed
▪ Risk reward should be at least 1:3
PRO TRADER TELUGU
 Ascending Triangle
▪ This is a continuation pattern
▪ Underline should be in uptrend
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▪ Consolidation in a triangular pattern

▪ Measure the range between the high and low of triangle, called this as A
▪ Target = Green candle bottom + A
▪ SL is below mean of the green candle
▪ Some tolerance allowed
▪ Risk reward should be at least 1:3
 Ascending Triangle
BULLISH PATTERNS
 Breakout About Multiple Tops

▪ This pattern can also be categorized as a continuation pattern

▪ After each decline underline should form a almost equal top
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▪ If price close above the multiple top, you can go for buying
▪ Here A is the value of the top level
▪ Target = Green candle bottom + A
▪ SL is below mean of the green candle
▪ Some tolerance allowed
▪ Risk reward should be at least 1:3
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BEARISH PATTERNS
 H&S

▪ This is a bearish pattern

▪
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Price should close below the neckline

▪ Measure Vertical distance from high of head to the neckline, Called this as A
▪ Target = Red candle high - A
▪ SL is above mean of the red candle
▪ Some tolerance allowed
▪ Risk reward should be at least 1:3
 Double Top

▪ First top at the end of a bullish trend

▪ After a down move market again retest the level(First top)
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▪ After second top red candle should form

▪ Measure Vertical distance from top level to lowest point, Called this as A
▪ Target = red candle high - A
▪ SL is above mean of the red candle
▪ Some tolerance allowed
▪ Risk reward should be at least 1:3
PRO TRADER TELUGU
 Bearish (Rising) Wedge
▪ This pattern form after the uptrend or it can form as a continuation pattern
▪ If found this pattern after a uptrend, it will be good
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▪ Consolidation in a triangular shape

▪ When close below the wedge, you can go for the trade
▪ Measure Vertical distance from start of wedge to lower point of wedge,
Called this as A
▪ Target= red candle high - A
▪ SL is above mean of the red candle
▪ Some tolerance allowed
▪ Risk reward should be at least 1:3
PRO TRADER TELUGU
 Down Flag

▪ This is a continuation pattern

▪ In this underline consolidate after a down move and underline again close
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below the consolidation

▪ These are short term pattern
▪ Measure Vertical distance from start of pole to low point of the flag, Called
this as A
▪ Target= red candle high - A
▪ SL is above mean of the red candle
▪ Some tolerance allowed
▪ Risk reward should be at least 1:3
PRO TRADER TELUGU
 Descending Triangle

▪ This is a continuation pattern

▪
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Underline should be in downtrend

▪ Consolidation in a triangular pattern
▪ Measure the range between the high and low of triangle, called this as A
▪ Target= Red candle high - A
▪ SL is above mean of the red candle
▪ Some tolerance allowed
▪ Risk reward should be at least 1:3
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PRO TRADER TELUGU
 DEMAT ACCOUNT OPENING LINKS

Please use following links for opening Demat account through

ANGEL BROKING or FYERS.

Angel Broking:
https://5minwebsite.angelbroking.com/Diykyc/SubbrokerLead
?SbTag=VkFTVg==&BType=SVRQ

Fyers:
http://partners.fyers.in/AP0353
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