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Technical Analysis
Class 2

Types of Chart| Support & Resistance

Trend | Channel| Candlesticks |Heiken
Ashi Candlestick
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Instructor
ARIFUL ISLAM
Sr. Technical Analyst & In Charge
Research & Development
StockBangladesh Limited
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Birds Eye View

• Types of Chart
• Support & Resistance
• Trend
• Channel
• Candlestick
• Haiken Ashi Candlestick
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Types of Chart

– Line Charts
– Bar Charts
– Candlestick Charts
– Point and Figure Charts
– Equi Volume Charts
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Line Chart

Closing
Price

Date
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Line Chart |BEXIMCO

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Bar Chart

High

Close

Open

Low
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Bar Chart | TITASGAS

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Candlestick Chart | DSEGEN

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Point and Figure Chart

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Equi Volume Chart

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Support and Resistance

Resistance Line or Level

Support Line or Level

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Support and Resistance

Resistance
• When prices have been rising and then
reverse downward, the highest point in the
rise, the peak, is referred to as a "resistance
level." It is the level at which sellers may be
as powerful and aggressive as buyers and
stop the advance.
• When the sellers (supply) become more
powerful and aggressive than the buyers
(demand), the result is a subsequent price
decline from the peak.
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Support and Resistance

Support
• A "support level" is the opposite of a
resistance level in that it is a single trough. At
the support level, buyers become as powerful
or aggressive as sellers and stop a price
decline.
• When the buyer (Demand) become more
powerful and aggressive than the Seller
(Supply), the result is a subsequent price rise
from the Trough.
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Support and Resistance

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Support and Resistance Zone

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Resistance Become Support

Recent Example: Learner’s Choices

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Support Become Resistance

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Trend Line
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Upward Trend Line | LANKABAFIN

Higher
High

Higher
Low

Recent Example: Learner’s Choice

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Downward Trend Line

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Downward Trend Line | DSEGEN

Lower
High

Lower Low
Recent Example: Learner’s Choice
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Downward Trend Line Break Out

Break Out
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Downward Trend Line Break Out

Recent Example: DSEGEN

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Upward Trend Line Break Down

Break Down
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Upward Trend Line Break Down

|DSEGEN

Recent Example: DSEGEN

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Trend Line Reversal

Break Out

Working as a Support
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Downward Trend line working as a

support

Recent Example: JAMUNA OIL

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Upward Trend Line working as a

Resistance

Break Down

Working as a Resistance
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Upward Trend Line working as a

Resistance

Recent Example: EHL

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Accelerating Trend Lines

New
Trend
Line

Previous Trend
Line
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Accelerating Trend Lines | GRAMEEN1

Recent Example: DSEGEN

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Channel
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Channel Break Down

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Candlestick Formation
55.00

54.00
High
Time Price 53.00
11:00 AM 50.00
11:20 AM 49.50 52.00 Close
11:40 AM 48.00 51.00
12:00 PM 48.50
12:20 PM 48.00 50.00
12:40 PM 48.50 Open
49.00
1:00 PM 50.00
1:20 PM 51.00 48.00

1:40 PM 52.00 47.00 Low

2:00 PM 53.50
2:20 PM 54.00 46.00

2:40 PM 52.00 45.00

3:00 PM 52.50
44.00
11:00 11:20 11:40 12:00 12:20 12:40 1:00 1:20 1:40 2:00 2:20 2:40 3:00
AM AM AM PM PM PM PM PM PM PM PM PM PM
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Candlestick Formation
56.00

High
Time Price 54.00

11:00 AM 52.50
11:20 AM 53.00 52.00
Open
11:40 AM 53.50
12:00 PM 54.00 50.00
12:20 PM 53.50
12:40 PM 53.00
1:00 PM 52.00 48.00
Close
1:20 PM 50.00
1:40 PM 48.50 46.00 Low
2:00 PM 47.50
2:20 PM 47.00 44.00
2:40 PM 47.50
3:00 PM 48.00
42.00
11:00 11:20 11:40 12:00 12:20 12:40 1:00 1:20 1:40 2:00 2:20 2:40 3:00
AM AM AM PM PM PM PM PM PM PM PM PM PM
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Candlestick
Upper Shadow Upper Shadow

High High

Close Open
Real Body

Real Body
Open Close

Low Low
Lower Shadow Lower Shadow
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Candlestick Patterns

• BULLISH Patterns
• BEARISH Patterns
• REVERSAL Patterns
• NEUTRAL Patterns
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Bullish Patterns

• Long white /green line

• Hammer
• Inverted Hammer
• Piercing line
• Bullish engulfing lines
• Morning star
• Bullish Doji star
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Long white/Green line

Recent Example: DESCO

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Hammer

Recent Example: DSEGEN, CITYGENINS

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Inverted Hammer
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Piercing line

Recent Example: BEDL, IFIC

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Bullish engulfing lines

Recent Example: MIRACLEIND

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Morning star

Recent Example: EHL, CONFIDCEM

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Bullish Doji star

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Bearish Patterns

• Long black /red line

• Hanging Man
• Dark Cloud Cover
• Bearish Engulfing Lines
• Evening Star
• Doji Star
• Shooting Star
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Long black/red line

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Hanging Man

Recent Example: DESCO, BEDL

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Shooting Star
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Shooting Star

Recent Example: DSEGEN

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Dark Cloud Cover

Recent Example: CITYBANK, DESHBANDHU

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Bearish Engulfing Lines

Recent Example: CITYGENINS

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Evening Star

Recent Example: CVOPRL

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Doji Star
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Reversal Patterns

• Long-Legged Doji
• Dragon-Fly Doji
• Gravestone Doji
• Star
• Doji Star
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Long-Legged Doji

Recent Example: GOLDENSON

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Dragon-Fly Doji

Recent Example: MERCINS, FUWANGFOOD

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Gravestone Doji

Recent Example: KEYACOSMET, DSEGEN

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Star

Recent Example: MICEMENT

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Doji Star
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Neutral Patterns
• Spinning Tops
• Doji
• Harami
• Harami Cross
• Marubuzu
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Spinning Tops

Recent Example: NPOLYMAR

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Doji

Recent Example: DSEGEN

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Harami
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Marubuzu
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Heiken Ashi Candlesticks

Heiken ashi candlesticks are different than

normal Japanese candlesticks. It looks
smoother than normal Japanese candles, it
is actually a lagging type of candlestick
and it reflects the trend which can be
understood easily.
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Heiken Ashi Candlesticks

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Heiken Ashi Candlesticks

Calculation:
• Close price is calculated by averaging the open, close, high
and low prices and uses this formula: x Close=
(open+high+low+close)/4
• Open price is calculated by averaging the open and close
prices of the previous candle and uses this formula:
xOpen=[Open of the previous candle + Close of the previous
candle]/2
• High price is simply the high price, open price or close price
which has the greatest value. High price uses this formula:
xHigh=Max (High, x Open, x Close)
• Low price is deduced by finding the low price, open price or
close price which has the lowest value. Low price uses this
formula: xLow=Min (Low, x Open, x Close)
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Heiken Ashi Candlesticks

• Once a Heiken Ashi chart has been calculated, you can
start to analyze the information it provides. Green
candles indicate an up trend, while Red candles
indicate a downtrend, but there are actually five main
indicators to watch.
• A green candle with only an upper shadow which is
called Bullish candle signifies a very strong up trend.
• A small candle with both upper and lower shadows
lets you know that a trend is changing. This doji type
candle can be either green or red colored.
• Red candles signify a down trend. A red candle with
no upper shadow indicates that the down trend is
very strong.
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Heiken Ashi Candlesticks

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Heiken Ashi Candlesticks

• In heiken aschi chart when trend change we will
see Neutral candles between two opposite trend.
Generally 3 or more small neutral candles after a
trend indicates a high probability of trend
changing to the opposite direction.
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Any Question ?
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Happy Trad!ng