Technical Analysis Video Notes

Review of historical price movements to predict future market prices – based around price.

Candlestick Charts
What is a candle? - Represents price movements throughout a certain timeframe
Candles have a body and wick. – A green candle represents a certain time period wherein a
price went up (it closed at a higher price than it opened at)

5-minute timeframe example

Open – Price at the start of the time-period (12:00)
Low – Lowest price in the total time-period
High – Highest point price got to in time period
Close – Price at the end of the time-period (12:05)

How can we use Candlestick Charts to predict what the market will do with a high level of
accuracy?

UPTRENDS
An up-trending market is one in which we progressively have higher HIGHS and lower LOWS.
Impulsive moves – big upward trends that lead to new highs.
Pullbacks – the period after an impulsive move wherein the market reduces a bit.
Our Pullback should never go below the low of our previous pullback

DOWNTRENDS
A down-trending market is one in which we progressively have lower HIGHS and lower
LOWS.
Impulsive moves – big downward trends that lead to new lows
Pullbacks – the period after an impulsive move wherein the market increases a bit.
Our Pullback should never go above the high of our previous pullback

SUPPORT AND RESISTANCE TRADES

Areas in the market that price is likely to react from
Support – Price is likely to have a bounce up from, supported by (buyers are here)
Resistance – Price is likely to drop down from (sellers are here)

INDICATORS

Doubts – stop loss, pip