Technical Analysis

Introduction
 Charting
1. Trend
2. Support & Resistance
3. Chart Pattern
4. Candlestick Pattern
5. Moving Average Line
6. Trading Volume
7. Bollinger Band
8. Fibonacci Retracement
 1. Trend
A. Uptrend
• Higher High, Higher Low
B. Downtrend
• Lower High, Lower Low
C. Sideway
• Directionless
 2. Support and Resistance

1. Horizontal S/R

2. Trend line S/R

3. Moving Average S/R

3. Chart Pattern (reversal-Bottom reversal)

• Double bottom
• Triple bottom
• Inverted head and shoulder
• Rounding bottom
 3. Chart Pattern (reversal-top reversal)

• Double top
• Triple top
• Head and shoulder
• Rounding top
 3. Chart Pattern (continuation)
• Symmetrical Triangle
• Ascending Triangle
• Descending Triangle
• Ascending Broadening Wedge
• Descending Broadening Wedge
 3. Chart Pattern (continuation-Flags)

• Bull Flags
• Bear Flags
• Rectangle
 3. Chart Pattern (continuation-Pennants)

• Bull Pennants
• Bear Pennants
• Cup and Handle
 4. Candlestick Pattern - Bullish
• Spinning Top
• Hammer
• Inverted Hammer
• Doji at the Bottom
 4. Candlestick Pattern - Bearish
• Spinning Top
• Hanging Man
• Shooting Star
• Doji at the Top
 5. Moving Average Line
• MA : 5, 8, 20, 50, 100, 200
• 5 – 10 MA for short term
• 20 -50 MA for mid term
• 100 – 200 for long term
• 1 week, 2 weeks, 1 month, 3 months, 6 months, 1
year
• Daily MA for short term – few days to 2 weeks
• Weekly MA – 2 weeks to 2 months
• Monthly MA - 2 months to half year
 6. Trading Volume
• To confirm the strength of price movement
• Must be relatively high volume to confirm the
trend
- Especially at critical point breakout, U turn,
reversal & divergence
Bollinger Band
Fibonacci Retracement
Total Investment Process
 What to Buy
• Good Business future
• Low P/E
• High Dividend Yield
• Revenue and Profit Growth
• Low debt level
• High cash level
 When to Buy
• Check the chart
 When to Sell
1. Over value
- P/E too high, P/B too high
2. Fundamentals turn bad
- Company prospect turn sour
- Business make a loss now
- Results no good
- Management team change, boss die or sick
- Business uncertainty increase
- Fake Account
- Serious court case
- Project got problem (payment issue, delay)
- Tight cash flow, debt increase, receivable take too long to receive
- company delisting, fall into PN category
3. Chart no good
- Previous new height cannot be broken after certain time frame
- Chart parabolic pattern
 When to Sell
4. Macro environment turn bad
- Politics, Economy, interest rate increase > 4 to 5%
- Macro crisis
5. Discover better stocks / opportunity
6. Market sentiment or psychology
- Overly bullish
- Overly optimistic
- Newspaper publish, market breaking new height
- Friends who never invest, now invest
- Tips flying around, everybody is stock genius
- One year make 10%  3 months make 10%  3 weeks make 10%  3
days make 10%
7. Earn enough (1000%)
- Take a break