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Welcome to Sumit’s

Ultimate Technical Analysis

Of Stocks
Contents
 Technical Analysis
 Purpose of tools
 Drawing tools for analysis

 Candlestick Patterns
and how to read them
 Indicators
 How to use technical analysis
for trading
 Technical Analysis Explained
 Drawing tools

 Candlestick Patterns

 Chart Patterns

 Indicators
 The Purpose of Your Tools
 Understand the market condition

 Area of value

 Entry trigger

 How to combine these tools and find high probability trading setups
 What are Drawing Tools
 Trend-line

 Trend Channel

 Support and Resistance

 Useful to find area of value to trade from

Support and Resistance
Trendline
Trend Channel
 How to Draw Correctly
 Zoom out the chart

 Draw the most obvious levels

 Adjust to get the most touches

How to Draw Correctly
Recap
 Drawing tools:
• Trendline
• Trend Channel
• Support and Resistance

 Help you buy low and sell high

 How to draw:
• Zoom out
• Draw most obvious levels
• Adjust to get most touches
 What is a Candlestick Pattern
 A method of reading price chart

 Open High Low and Close

 Useful as an entry trigger

How to Read Candlestick Pattern
How to Read Candlestick Pattern
Engulfing Pattern
Hammer and Shooting Star
Morning and Evening Star
Recap
 Candlestick is a method of reading price chart (using OHLC)

 Useful as an entry trigger

 Powerful Candlestick patterns:

Engulfing Pattern, Hammer & Shooting Star, and
Morning & Evening Star
 What is a Chart Pattern
 Quick assessment of the strength, weakness or equilibrium in
the market

 Useful as an entry trigger and understand market condition

Ascending Triangle
Flag Pattern
Recap
 Quick assessment of the strength, weakness or equilibrium
in the market
 Useful as an entry trigger and understand
market condition
 Common chart patterns:
Ascending Triangle
Flag Pattern
 What is an Indicator
 A tool that takes historical data and apply a formula to it

 “Summarize” the market price action

 Useful as an entry trigger, identifying area of value, and

Understanding market condition
Moving Average --- What is it?
Moving Average --- Trend Filter
Moving Average --- Area of Value
Average True Range--- What is it?
Average True Range--- Stop loss
Volatility Cycle
Donchian Channel-- What is it?
Donchian Channel– Entry Trigger
Donchian Channel – Trend Filter
Donchian Channel – Trailing Stop Loss
Recap
 “Summarize” the market price action

 Useful as an entry trigger, identifying area of value, and

understanding market condition
Recap
 Moving Average:
Trade with the trend
Area of value
 Average True Range:
Set a proper stop loss
Identify the market’s volatility

 Donchian Channel:
Entry trigger
Trend filter
Trailing stop loss
 How to Use Technical Analysis
 Understand the purpose:
Understand market condition
Area of value
Entry trigger
Donchian Channel + ATR
Moving Average + Candlestick
Resistance + Candlestick
Recap
 Know the purpose of your Technical Analysis tools

 Combine them to read the market and

to develop a trading strategy