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Technical Analysis
Technical Analysis
GT
Dow Jones Theory
• Market has three movements
• All going at the same time
• Narrow Movement – day to day (daily fluctuations)
• Short Swing – two weeks to a month or more (secondary
movements)
• Main Movement – at least four years (primary trends)
Point and Figure Chart
Bullish Indicators
Bearish Indicators
Reversal Patterns
Uncertain Patterns
Support and Resistance
Head and Shoulders – L&T
Inverse Head and Shoulders
Cup and Handle
Double Top
Double Bottom
Flag
Pennant
Symmetrical Triangle
Ascending Triangle
Descending Triangle
Wedge
Rounding Bottom
Triple Top
Triple Bottom
Moving Average
Moving Average
27.5
27
26.5
26
25.5
25
24.5
24
23.5
23
1 2 3 4 5 6 7 8 9 10
Stock price line rises through the moving average line Stock price line falls through the moving average line
when the graph of the moving average line is when the graph of the moving average line is
flattening out flattening out
Stock price line falls below the moving average line Stock price line rises above the moving average line
which is rising which is falling
Stock price line, which is above the moving average Stock price line, which is below the moving average
line, falls but begins to rise again before reaching the line, rises but begins to fall again before reaching the
moving average line moving average line
MACD - Moving average conversion divergence