WEEK 1

INTRODUCTION TO

WEBINAR ADVANCE
TECHNICAL ANALYSIS, DOW
JONES THEORY, CHART,
TREND, SUPPORT/
RESISTANCE & MULTIPLE
TIMEFRAME
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CONTENTS
1. Introduction to TA
2. Principle
3. TA vs. FA
4. Advantages vs. Disadvantages
5. Dow Theory
6. Chart Type & Constructions
7. Support / Resistance
8. Trend
9. Chart Pattern
10. Multiple Time Frame

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 INTRODUCTION TO Concept, Principle and

TECHNICAL ANALYSIS Key Points

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PHILOSOPHY OF
TECHNICAL ANALYSIS
1. Introduction
2. Philosophy or Rationale
3. Technical vs Fundamental Forecasting
4. Advantages and Disadvantages
5. Some Criticisms of the Technical Approach
6. Random Walk Theory

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INTRODUCTION
Technical analysis is the study of market action, primarily
through the use of charts, for the purpose of forecasting future
price trends.
The term market action includes the three principal sources of
information available to the technician – price, volume and open
interest. (open interest is used only in futures and options).
The term price, which is often used, seems to narrow because
most technicians include volume and open interest as an
integral part of their market analysis.
The term price action and market action are used
interchangeably throughout the remainder of this discussion.

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TA PRINCIPLES

1. Market Action Discounts Everything

2. Prices Move in Trends
3. History Repeat Itself

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MARKET ACTION DISCOUNTS
EVERYTHING
The technician believes that anything that can possibly affect the price in
term of fundamentally, politically, psychologically or otherwise is actually
reflected in the price of that market.
They claiming is that price action should reflect shifts in supply and
demand. If demand exceeds supply, prices should rise. If supply exceeds
demand, price should fall. This action is the basis of all economic and
fundamental forecasting.
As a rule, chartists do not concern themselves with the reasons why prices
rise or fall. Very often, at early stages of a price trend or at critical turning
points, no one seems to know exactly why a market is performing a
certain way.
Everything that affects market price is ultimately reflected in market price,
than the study of that market price is all that is necessary.
By studying price charts and a host of supporting technical indicators, the
chartist in effect lets the market tell them which way it is most likely to go.

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PRICES MOVE IN TRENDS
The whole purpose of charting the price action of a market is
to identify trends in early stages of their development for the
purpose of trading in the direction of those trends.
Most of the techniques used in this approach are trend-
following in nature, meaning that their intent to identify and
follow existing trends.
A trend in motion is more likely to continue than to reverse.
“Trend is a friend until it bend”

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HISTORY REPEAT ITSELF
Study of market action has to do with the study of human
psychology. Chart pattern which have been identified and
categorized over the past one hundred years, reflect certain
pictures that appear on price charts. These pictures reveal the
bullish or bearish psychology of the market.
Since these patterns have worked well in the past, it is
assumed that they will continue to work well in future. Based
on the human psychology, which tends not to change. The
future is just a repetition of the past.

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TECHNICAL VS. Advantages &

FUNDAMENTAL
Disadvantages

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TECHNICAL VS FUNDAMENTAL
FORECASTING
Fundamental Analysis
Study the cause of market movement.
Study supply and demand.
Study the intrinsic value (fair value of the company)

Technical Analysis
Study of price action.
Study of effect of the market.
Study solely on charts.
Market price acts as a leading indicator of the fundamentals.

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ADVANTAGES OF TA
TA focuses more on price movement. The chart will show the price
moving or not, when price trending and the strength of those trend.
Volume, oscillators and momentum give a clearer picture of market
actions.
Trends are easily found by using technical. Taking a look at a moving
average line that quickly display a price that is trending or stuck in
range. Whether it is up, down or sideways a chart can quickly display
a price that exhibiting a trend.
Patterns are easily identified. One of the basic tenet of market action
is that price repeats itself in clear, unmistakable pattern. Pattern such
as head and shoulder, rounding tops/bottoms, ascending/
descending triangles are proven pattern that many price will follow.

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ADVANTAGES OF TA
(CONT.)
The ability of technical analysis to handle difference time
dimensions. Whether the user is trading intraday tic by tic change
for day trading purposes or trend trading the intermediate trend,
the same principle apply. Also can be used in longer range
technical forecasting by using weekly and monthly chart going
back to several years that has proven to be an extremely useful.
Charts provide a wealth of information in only a few moments.
Trends are easily found so support and resistance level are quickly
identified. Momentum, volatility and trading patterns appear
quickly and easily. They are more than 50 kind of indicators and
each of them provide different information on how the price is
moving.

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DISADVANTAGES OF TA
Technical indicators’ mixed signals. In some cases, one of the
technical indicators will show a buy signal and another indicator will
show a sell signal. This causes confusion in trading decisions. 
Technical analysis is used to forecast  stocks. All of the technical
indicators give possible entry and exit points. The forecasting
accuracy isn’t  100%. For example, when a possible entry or exit
point for a stock is suggested, it doesn’t guarantee a successful
trade. Stock may decrease  after the entry. Stock can also rise after
the exit.
Biased opinion. One technical analyst’s opinion may contradict
another analyst’s opinion for the same stock. The technical methods
that are used to analyze stocks can vary from one analyst to another.

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DISADVANTAGES OF TA
Human touch. Part of technical analysis deal with Volume
changes, therefore, if the crowd is being affected by certain
news, or event, they might overreact, or underreact. Overreact
will cause the price to move above or below the fundamental
value of the stock price. Underreact will cuase the price to stay
stagnant, and not move up or down to the fundamental value
of the stock. 
Too vague. Technical anaylsis look at price consolidation and
also price break out point, if an trader do not have adequate
education, will the price consolidation = to what others think it
is? will one interpret the same as the others?

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CRITICISMS OF TECHNICAL
APPROACH

A few questions generally crop up in any discussion of

technical approach. Self-fulfilling prophecy and whether or not
past data can really be used to forecast future price direction.
The critic usually says something like; charts tell us where the
market has been, but can’t tell us where it is going.”

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SELF-FULFILLING
PROPHECY
The best way to address this question is to quote from a text that
discusses some of the advantages of using chart patterns:
a) creates a “self-fulfilling prophecy” as waves of buying or selling
are created in response to ‘bullish’ or ‘bearish’ patterns
b) Chart patterns are almost completely subjective
Critics of charting cant have it both ways – pattern to be fulfilled and
criticize charting for being too subjective
Chart patterns are seldom so clear that even experienced chartist
always agree on their interpretation.
Some philosophy for the chart reading is try to anticipate the chart
signal and enter the market early, and others would by the ‘breakout’
from a given pattern or indicator

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SELF-FULFILLING
PROPHECY (CONT.)
The approach of traders – some aggressive, some conservative, some use
stops to enter the market, some use markets orders or resting limits orders.
The concept of trading is long pull and some are day trading
This self-fulfilling prophecy probably be ‘self-correcting’ in nature. For
example; traders would rely heavily on charts until distort the markets.
Meaning, they would either try to act before the crowd or wait longer for
greater confirmation.
So, the self-fulfilling prophecy did become a problem over the near term, it
would tend to correct itself.
Technicians could not possibly cause a major market move just by the
sheer power of their buying and selling
Computerised technical trading systems mainly trend-following to identify
and trade major trends.
The self-fulfilling prophecy is generally listed as a criticism of charting.

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CAN THE PAST BE USED
TO PREDICT THE FUTURE?
Descriptive statistics refers to the graphical
presentation of data, such as the price data on a
standard bar chart.
Inductive statistics refers to generalizations,
predictions, or extrapolations that are inferred from
that data.
Descriptive statistics refers to the graphical
presentation of data, such as the price data on a
standard bar chart.

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RANDOM WALK THEORY
Its developed and nurtured in the academic community, claims that price
charges are ‘serially independent’ and that price history is not a reliable
indicator of future price direction.
The efficient market hypothesis, holds that prices fluctuate randomly about their
intrinsic value
The best market strategy to follow would be a simple ‘buy and hold’ strategy
opposed to any attempt to ‘beat the market’
How do the random walkers explain the persistence of these trends if prices are
serially independent?
a) the efficient market hypothesis is very close to technical premise that markets
discount everything.
b) the basis of technical forecasting is important market information for market
price long before it becomes down.
c) An electrocardiogram printout might appear like a lot of random noise to a
layperson

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UNIVERSAL PRINCIPLES

The technical principles that are discussed

and applied universally to all market and
feature of stick market, has gained wide
popularity in the past decade has been
sector investing, primarily through index
options and mutual funds.

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DOW THEORY 6 Tenets

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DOW THEORY
1. Introduction
2. Basic Tenets
3. The Use of Closing Prices and The Presence of Lines
4. Some Criticism of Dow Theory
5. Stocks as Economic Indicators
6. Dow Theory Applied To Futures Trading

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INTRODUCTION TO DOW
THEORY
Dow Theory still forms the cornerstone of the study of
technical analysis, which determined that two separate indices
would better represent that health in this industry
Dow applied his theoretical work to the stock market
averages that he created; namely the Industrial and the Rails.
However, most of his analytical ideas apply equally well to all
market averages.
There are six basic tenets of Dow Theory to be discussed later
on

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6 BASIC TENETS

1) The Averages Discount Everything

The sum and tendency of the transactions of the stock

Exchange The theory applies to market averages, as well as it
does to individual markets.
Anything that can possibly affect the price in term of
fundamentally, politically, psychologically or otherwise is actually
reflected in the price of that market.
Represent the sum of all Wall Street’s knowledge of the past,
immediate and remote, applied to the discounting of the future.

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 6 BASIC TENETS (CONT.)
2) The Market Has Three Trends

Dow defined an uptrend as a situation in which each successive rally closes higher than the
previous rally high, and each successive rally low also closes higher than the previous rally low.
An uptrend has a pattern of rising peaks and troughs.
Dow’s definition has withstood the test of time and still forms the cornerstone of trend
analysis
Dow believed that laws of action and reaction apply to the markets just as they do to the
physical universe.
Dow considered a trend to have three parts, primary, secondary, and minor, which he
compared to the tide, waves, and ripples of the sea.
a) The primary trend represents the tide, the secondary or intermediate trend represents the
waves that make up the tide, and the minor trends behave like ripples on intermediate, trend
represents corrections in the primary trend and usually lasts three weeks the waves.
b) The secondary, or to three months.
c) The minor trend usually lasts less than three weeks. This near trend represents fluctuations
in the intermediate trend.
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6 BASIC TENETS (CONT.)

3) Major Trends Have Three Phases

An accumulation phase : represents informed buying by

the most astute investors.
The public participation phase : most technical trend-
followers begin to participation, occurs when prices
begin o advance rapidly and business news improves
The distribution phase : when economics news is better
than ever, or when speculative volume and public
participation increase.
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6 BASIC TENETS (CONT.)

4) The Averages Must Confirm Each Other

In referring to the Industrial and Rail Averages, meant that no

important bull or bear market signal could take place unless
both averages gave the same signal, thus confirming each
other.
Dow not believe that the signals had to occur simultaneously,
but recognised that a shorter length of time between the two
signals provided stronger confirmation.

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6 BASIC TENETS (CONT.)

5) Volume Must Confirm the Trend

In uptrend, volume would increase as prices move

higher and diminish as prices fall. In downtrend,
volume should increase as prices drop and diminish
as they rally. Dow considered volume a secondary
indicator. He based his actual buy and sell signals
entirely on closing prices.

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 6 BASIC TENETS (CONT.)
6) A Trend Is Assumes to Be in Effect Until It Gives Definite Signals That It Has
Reserved.

This Tenet, forms much of the foundation of modern trend-following

approaches.
Its relates a physical law to market movement, which states that an object in
motion tends to continue in motion until some external force causes it to
change direction.
A number of technical tools are available to traders to assist in the difficult task
of spotting reversal signals, including the study of support and resistance
levels, price patterns, trendiness, and moving averages.
Some indicators can provide even earlier warning signals of loss of momentum
The most difficult task for a Dow theorist, or any trend-follower for the matter,
is being able to distinguish between a normal secondary correction in an
existing trend and the first leg of a new trend in the opposite direction.
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THE USE OF CLOSING PRICES AND THE
PRESENCE OF LINES

Closing prices by Dow :

a) Believed the average had to close higher than a
previous peak or lower than a previous trough to have
significance.
b) Dow did not consider intraday penetrations valid
c) When traders speak of lines in the averages, they
are referring to horizontal patterns that sometimes
occur on the chart, and lateral patterns as ‘rectangle’
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SOME CRITICISMS OF
DOW THEORY
Dow Theory misses 20-25% of the move before generating a
signal. Many traders consider this to be too late.
Dow Theory buy signal usually occurs in the second phase of an
uptrend as price penetrates a previous intermediate peak.
In response to this criticism, traders must remember that Dow
never intended to anticipate trends, rather he sough to
recognize the emergence of major bull and bear markets and
to capture the large middle portion of important market moves
Those who criticize Dow Theory for failing to catch actual
market tops and bottoms lack a basic understanding of the
trend-following philosophy.

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STOCKS AS ECONOMIC INDICATORS

Dow was to use stock market direction as a

barometric reading of general business conditions
To formulating a great deal of today’s price
forecasting methodology, he was among the first to
recognize the usefulness of stock market averages
as a leading economic indicator.

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DOW THEORY APPLIED
TO FUTURES TRADING
Dow assumed that most inventors follow only the
major trends and would use intermediate
corrections for timing purposes only.
In a future trader expected an intermediate uptrend
to last for a couple of months, they would look for
short term dips to signal purchases.
In an intermediate down-trend, the trader would use
minor bounces to signal short sales.

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TYPE OF CHART Variation

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CHART TYPE - LINE
A style of chart that is created by connecting a series of data
points together with a line. This is the most basic type of chart
used in finance and it is generally created by connecting a
series of past prices together with a line.

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CHART TYPE - BAR
A bar chart is a style of chart used by some technical analysts
on which the top of the vertical line indicates the highest
price a security is traded at during the day, and the bottom
represents the lowest price. The closing price is displayed on
the right side of the bar, and the opening price is shown on
the left side of the bar.

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CHART TYPE -
CANDLESTICK
A candlestick is a chart that displays
the high, low, opening and closing
prices of a security for a specific
period. The wide part of the
candlestick is called the "real body"
and tells investors whether
the closing price was higher or lower
than the  opening price. Black/red
indicates that the stock closed lower
and white/green indicates that the
stock closed higher.

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CHART TYPE – POINT &
FIGURE
All the  charting methods shown
above plot one data point for
each period of time. No matter
how much price movement, each
day or week represented is one
point, bar, or candlestick along
the time scale. Even if the price
is unchanged from day to day or
week to week, a dot, bar, or
candlestick is plotted to mark
the price action. Contrary to this
m e t h o d o l o g y, p o i n t &
figure charts are based solely on
price movement, and do not
take time into consideration.
There is an x-axis but it does not
extend evenly across the chart.

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CHART TYPE - KAGI
As with Point & Figure charts, Kagi charts are based strictly on price
action and ignore time. According to Steve Nison, author of Beyond
Candlesticks, Kagi  charts were invented in the late 19th century in
Japan. Instead of X-Columns and O-Columns, Kagi charts are simply
line  charts that change direction when prices move a required
amount. There is also the added aspect of yin and yang as the lines
change thickness when prices break above a prior high or below a
prior low.

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 CHART TYPE – HEIKIN-
ASHI
Heikin-Ashi Candlesticks are an
offshoot from Japanese
candlesticks. Heikin-Ashi
Candlesticks use the open-close
data from the prior period and
the open-high-low-close data
from the current period to
create a combo candlestick.
The resulting candlestick filters
out some noise in an effort to
better capture the trend. In
J a p a n e s e ,  H e i k i n  m e a n s
“average” and  ashi  means
“pace” (EUDict.com). Taken
together, Heikin-Ashi represents
the average pace of prices.

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CHART TYPE - RENKO
Invented in Japan, Renko  charts ignore time and focus solely on price
changes that meet a minimum requirement. In this regard, these  charts are
quite similar to Point & Figure charts. Instead of X-Columns and O-Columns,
Renko  charts use price “bricks” that represent a fixed price move. These
bricks are sometimes referred to as “blocks” or “boxes.” They move up or
down in 45-degree lines with one brick per vertical column. Bricks for upward
price movements are hollow while bricks for falling price movements are filled
with a solid color (typically black).

DIPLOMA IN TECHNICAL ANALYSIS (MSTA) 42

CHART TYPE – THREE
LINE BREAK
Invented in Japan, Three Line Break  charts ignore time and
only change when prices move a certain amount. In this
regard, these charts are quite similar to Point & Figure charts.
Three Line Break  charts show a series of vertical white and
black lines. White lines represent rising prices, while black
lines portray falling prices. Prices continue in the same
direction until a reversal is warranted.  A reversal occurs
when the closing price exceeds the high or low of the
prior two lines.

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DIPLOMA IN TECHNICAL ANALYSIS (MSTA) 46
47
 SUPPORT & Concept

RESISTANCE
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SUPPORT & RESISTANCE

•Support and resistance represent key junctures

where the forces of supply and demand meet. In the
financial markets, prices are driven by excessive
supply (down) and demand (up). Supply is
synonymous with bearish, bears and selling. Demand
is synonymous with bullish, bulls and buying.

•As demand increases, prices advance and as supply

increases, prices decline. When supply and demand
are equal, prices move sideways
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SUPPORT & RESISTANCE
Support is the price level at which demand is thought to be
strong enough to prevent the price from declining further. 

Resistance is the price level at which selling is thought to be

strong enough to prevent the price from rising further. 

Support can be established with the previous reaction lows.

Resistance can be established by using the previous reaction
highs.

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SUPPORT / RESISTANCE
The troughs or reaction lows, are called support. Support indicates a
level or area on the chart under the market where buying interest is
sufficiently strong to overcome selling pressure. As a result a decline is
halted and prices turn back up again. Usually a support level is
identified beforehand by a previous reaction low.

The peaks are called resistance, which is the opposite of support.

Resistance indicates a price level or area over the market where the
selling pressure overcomes buying pressure and a price advance is
turned back. Usually a resistance level is identified by a previous peak.

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SUPPORT / RESISTANCE

▪ Find price rebound

▪ Longer is stronger
▪ Bounce 1 time – Minor
▪ Bounce more than 1 time – Major
▪ Weekly is more significant than daily
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SUPPORT EQUALS RESISTANCE & VICE VERSA

• Once the price breaks below a support level, the

broken support level can turn into resistance.

• The breakout above resistance proves that the

forces of demand have overwhelmed the forces
of supply. If the price returns to this level, there
is likely to be an increase in demand and support
will be found.

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SUPPORT AND
RESISTANCE ZONES
Because technical analysis is not an exact
science, it is useful to create support and
resistance zones.

Each security has its own characteristics, and

analysis should reflect the intricacies of the
security. Sometimes, exact support and
resistance levels are best, and, sometimes, zones
work better. 
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TREND Concept

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 TREND
The market has 3 trends

(UP) Defined as a series of successively

higher peaks and troughs.

(DOWN) Defined as a series of

successively declining peaks and
troughs.

(SIDE) Defined
DIPLOMA INas a series
TECHNICAL of horizontal
ANALYSIS (MSTA) 56
TREND LINES
Trend  Lines are an important tool in technical analysis for
both trend identification and confirmation. 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. The second low must be higher than the
first for the line to have a positive slope. Uptrend  lines act as
support and indicate that net-demand (demand less supply) is
increasing even as the price rises.

A downtrend  line has a negative slope and is formed by connecting

two or more high points. The second high must be lower than the first
for the line to have a negative slope. Downtrend  lines act as
resistance, and indicate that net-supply (supply less demand) is
increasing even as the price declines.
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TREND LINES SAMPLES

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CHART PATTERN Continuation & Reversal

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CHART PATTERN
Definition :
A chart/price pattern is a pattern that is formed within a chart when
prices are graphed. In stock and commodity markets trading, chart
pattern studies play a large role during technical analysis. When data is
plotted there is usually a pattern which naturally occurs and repeats
over a period. Chart patterns are used as either reversal or
continuation signals.
Why? :
A chart pattern is a distinct formation on a stock chart that creates a
trading signal, or a sign of future price movements. Chartists use these
patterns to identify current trends and trend reversals and to trigger
buy and sell signals.

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CHART PATTERN

Continuation :
▪ A continuation pattern, signals that a trend will continue once the
pattern is complete.

▪ Stopgap / Consolidation

Reversal :
▪ A reversal pattern signals that a prior trend will reverse upon
completion of the pattern
▪ Usually happen at the top or at the bottom

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CHART PATTERN -
CONTINUATION PATTERN
The Classic 1,2,3 Formation
Common chart pattern consisting of 3 definable points. 1-2-3
formation is a well known chart pattern which crops up
regularly across most liquid markets. A 1-2-3 formation can be
accurately defined by an objective set of rules.

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CHART PATTERN -
CONTINUATION PATTERN
Triangle
A technical analysis pattern created by drawing trend lines
along a price range that gets narrower over time because of
lower tops and higher bottoms. Variations of a triangle
include ascending and descending triangles.

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CHART PATTERN -
CONTINUATION PATTERN
The Flag & The Pennant
These two short-term chart patterns are continuation patterns
that are formed when there is a sharp price movement
followed by a generally sideways price movement. This
pattern is then completed upon another sharp price
movement in the same direction as the move that started the
trend. The patterns are generally thought to last from one to
three weeks.

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CHART PATTERN -
CONTINUATION PATTERN
The Rectangle
A pattern formed on a chart where the price of a security is
trading within a bounded range in which the levels of
resistance and support are parallel to each other, resembling
the shape of a rectangle. This pattern signals that the price
movement, which has stalled during the pattern, will trend in
the direction of the price breakout of the bounded range.

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CHART PATTERN -
CONTINUATION PATTERN
The Cup and Handle
A pattern on bar charts
resembling a cup with a handle.
The cup is in the shape of a "U"
and the handle has a slight
downward drift. Avoid cups with a
sharp "V" bottoms. Volume -
Volume should dry up on the
decline and remain lower than
average in the base of the bowl. It
should then increase when the
stock finally starts to make its
move back up to test the old high.

66
CHART PATTERN - REVERSAL
PATTERN
The Inverted Head and Shoulder
This is one of the most popular and reliable chart patterns in
technical analysis. Head and shoulder is a reversal chart
pattern that when formed, signals that the share price is likely
to move against the previous trend. Inverted head and
shoulder is another variation of the head and shoulder pattern
which happen usually at the bottom.

67
CHART PATTERN - REVERSAL
PATTERN
The Double/Triple Bottom
A charting pattern used in technical analysis. It describes the
drop of a stock price, a rebound, another drop to the same
(or similar) level as the original drop, and finally another
rebound.

68
CHART PATTERN - REVERSAL
PATTERN
The Falling Wedge
In technical analysis, a security price
pattern where trend lines drawn above
and below a price chart converge into
an arrow shape. Wedge shaped
patterns are thought by technical
analysts to be useful in analyzing a short
to intermediate term reversal of what
the analyst feels to be the major price
trend. Once the price breaks out of the
wedge, it is expected to return to the
major trend. Technical analysts see a
'breakout' of this wedge pattern bullish
(on a breakout above the upper line)

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DIPLOMA IN TECHNICAL ANALYSIS (MSTA) 82
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MULTIPLE TIME 3D Perspectives

FRAME CHART
84
MULTIPLE TIME FRAME
Multiple time-frame analysis involves monitoring the same
currency pair across / other instruments at different frequencies (or
time compressions). While there is no real limit as to how many
frequencies can be monitored or which specific ones to choose,
there are general guidelines that most practitioners will follow.
Typically, using three different periods gives a broad enough
reading on the market - using fewer than this can result in a
considerable loss of data, while using more typically provides
redundant analysis.

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MONTHLY, WEEKLY &
DAILY

86
BENEFITS OF MULTIPLE
TIME FRAME ANALYSIS
Key levels of support and resistance may exist near your trade,
but that can’t be seen on the time-frame you are trading on.
The trend may appear differently on the time-frame you are
looking at than where the longer term trend is moving.
Price may appear to have room to move on one-time frame
where it is actually quite over-extended on a lesser time-frame.
You can make a much more precise entry point on shorter times
than on longer ones.
You may take a great trade on a short time-frame and hit your
target, but not realize you could have let it run for a way bigger
profit due to the longer term trend.

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CREATING TRADING Analysis & Design

STRATEGY
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TRADING STRATEGIES
A set of objective rules defining the conditions that must be
met for a trade entry and exit to occur. Trading strategies
include specifications for trade entries, including trade filters
and triggers, as well as rules for trade exits, money
management, timeframes, order types, and other relevant
information. A trading strategy, if based on quantifiably
specifications, can be analyzed based on historical data to
project future performance.

89
AGGRESSIVE TRADING
An aggressive investment trading focuses on capital
appreciation as an elementary investment objective, rather
than income or safety of principal. Aggressive investment
strategies are suitable for younger generation because their
lengthy investment skyline encourage them to ride out market
fluctuations better than investors with a short investment
plan. Unconcern of the investor’s age, however, a high
tolerance for risk is a complete condition for an aggressive
investment trading. In another words we can say that for
aggressive trader will have to choose stop loose at nearer
point.

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CONSERVATIVE TRADING
Conservative Trading is an investing technique that seeks to
protect an investment portfolio’s value by investing in lesser
risk securities such as fixed-income and often blue-chip or
large-cap equities that offer high quality service products. In
conservative trading you can swim longer than aggressive
trading. Conservative investors take risk ranging from low to
moderate. This type of investor are whom have low risk
tolerance and are often extremely inconvenient with the stock
market and wish to avoid it completely. However, although
this way of investment may protect against inflation, it will not
earn any more over time.

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PLAN FOR EACH
PERSPECTIVE
AGGRESSIVE CONSERVATIVE
LONG / SHORT PREFER LONG
TRAILING STOP NORMAL STOP
MOMENTUM TREND
BIGGER RISK SMALLER RISK
SHORTER TIMEFRAME LONGER TIMEFRAME

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