Stocks – Technical Skills

Money and Banking

Learning Objectives
• Demonstrate an ability to read stock prices from technical
diagrams
• Identify support and resistance price points of stocks
• Insert price trend lines in stocks
• Describe importance of time with stock prices
• Explain importance of Japanese Candlesticks with stocks
• Identify stock symbols

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STOCKS
TICKER SYMBOLS
Stock – Ticker Symbols

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Example Vodafone Group plc stock ticker symbol

Stock – Ticker Symbols

Reuters
Bloomberg tic
Location Instrument Yahoo ticker
ker
Code
London Stock
VOD.L VOD:LN VOD.L
Exchange
VOD.O or
Nasdaq VOD:US VOD
VOD.OQ
Stock
Exchange of VOD.SI VOD:SP VOD.SI
Singapore

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STOCKS
JAPANESSE CANDLESTICKS
Why Candlesticks?
• Japanese Candlesticks
provide more detailed and
accurate information about
price movements
• Provide a graphical
representation of the
supply and demand behind
each time period's price
action.

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Japanese Candlestick

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STOCKS
TECHNICAL – SUPPORT & RESISTANCE
Stocks – Support and Resistance
• Support and resistance levels are important points in
time where the forces of supply and demand meet.
• These support and resistance levels are seen by
technical analysts as crucial when determining
market psychology and supply and demand.
• When these support or resistance levels are broken,
the supply and demand forces that created these
levels are assumed to have moved, in which case
new levels of support and resistance will likely be
established.
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Support & Resistance Chart

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RESISTANCE

SUPPORT

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STOCKS
TIME & TREND LINES
What are stock trend lines?
• 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.
• An uptrend line has a positive slope and is formed by
connecting two or more low points.
• A downtrend line has a negative slope and is formed
by connecting two or more high points.

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Trend Line (example)

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Uptrend Line (example)

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Downtrend (example)

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Stock Prices - Time

• Charts can be seen in a variety of timeframes.

• Stock timeframes include: Daily, Weekly, Monthly,
Annual
• Longer timeframes have more valid trendlines

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Example – Daily Chart (GS)

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Example – Weekly Chart (GS)

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STOCKS
Moving Averages
Moving Averages
• Moving averages are a common way for technical traders to begin the
process of price analysis. It is often one of the first indicators that
traders will add to their charts and will serve as a measure on its own
or in comparison with other indicators.
• A moving average is the average price of a futures contract or stock
over a set period of time. Traders can add just one moving average or
have many different time frames on one chart.

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Moving Averages – GS Weekly

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 STOCKS • Draw a trendline
• Identify stronger trendlines
• Draw Support line
• Draw Resistance line
STUDENTS MUST BE
ABLE TO • Identify Moving Average
DEMONSTRATE Lines

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