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Technical Analysis Final SAPM
Technical Analysis Final SAPM
Module 3
Part B
! Primary |rend
Called the tide by Dow, this is the trend that
defines the long-term direction (up to several years).
Others have called this a secular bull or bear
market.
! Secondary |rend
Called the waves by Dow, this is shorter-term
departures from the primary trend (weeks to months)
! Day to day fluctuations
Not significant in Dow |heory
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! Charting Stocks
Bar Charts and Japanese Candlestick Charts
Point and Figure Charts
! Major Chart Patterns
! Price-based Indicators
! Volume-based Indicators
! Dow |heory
! Elliot Wave
down days
! Note: You should print the
example charts (next two
slides) to see them more
clearly
! |rend Lines
! Moving Averages
! Price Patterns
! Indicators
! Cycles
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owntrend line
"$
! enerally 7day , 10day, and 15day moving avgs are worked out .
! |hey are worked for both the scrip studied and the Index.
! |he two graphs are compared and when the trends are similar the
scrip and index will show comparable avg. risks.
! When the avg line cuts the actual price line of the scrip or the index
from the bottom, it signal to sell shares
! When the avg line cuts the actual price line from above it is the right
time to buy shares.
! enerally , the closing prices of these scrips of the scrips are taken
for the moving avgs.
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! |his formation is
characterized by two
small peaks on either
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