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TECHNICAL ANALYSIS
 INDEX
1. BULLISH FLAG
2. DESCENDING TRIANGLE
3. DOUBLE BOTTOM
4. BOLLINGER BANDS
5. BEARISH CROSSOVER
6. BULLISH DIVERGENCE
7. MAC-D BEARISH CROSSOVER
8. ADX
9. PRIMARY TREND + TRIPLE BOTTOM REVERSAL
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BULLISH FLAG
•A flag pattern, in technical analysis, is a price chart
characterized by a sharp countertrend (the flag) succeeding a
short-lived trend (the flag pole).
•A bullish flag appears like an upright flag on a price chart,
with a rectangular price pattern marking the flag itself.
•The tighter the flag, the better the signal is said to be.
 DESCENDING TRIANGLE 4

• Descending triangles are a very popular chart pattern among traders because it clearly shows that
the demand for an asset, derivative or commodity is weakening.
• When the price breaks below the lower support, it is a clear indication that downside momentum is
likely to continue or become even stronger.
• Descending triangles give technical traders the opportunity to make substantial profits over a brief
period of time. Descending triangles can form as a reversal pattern to an uptrend, but they are
generally seen as bearish continuation patterns.
 DOUBLE BOTTOM 5
•  A double bottom pattern is best suited for analyzing the intermediate- to longer-term view of a market.
Generally speaking, the longer the duration between the two lows in the pattern, the greater the
probability that the chart pattern will be successful.
• At least a three-month duration is considered appropriate for the lows of the double bottom pattern, in
order for the pattern to yield a greater probability of success. It is, therefore, better to use daily or weekly
data price charts when analyzing markets for this particular pattern.
• Although the pattern may appear on intraday price charts, it is very difficult to ascertain the validity of the
double bottom pattern when intraday data price charts are used.
 BOLLINGER BANDS
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•Bollinger Bands consist of a centerline and two price channels or bands above and
below it.
•The centerline is typically a simple moving average while the price channels are
standard deviations of the stock being studied.
•The bands expand and contract as price action becomes volatile (expansion) or bound
into a tight trading pattern (contraction).
•Traders designate the upper and lower bands as price targets when drawing the
bands.
•When the price continually touches the upper Bollinger Band, it can indicate an
overbought signal while continually touching the lower band indicates an oversold
signal.
 BULLISH DIVERGENCE
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•Divergences are used by technical traders to read momentum, such as when the market's momentum is about to change
direction or the speed at which an investor is approaching a possible momentum shift.
•Oscillators are helpful tools for investors to use, particularly when their readings are in opposition to prices; for example,
a bullish divergence emerges when a price hits a new low but an oscillator fails to follow suit.
•Oscillators are useful for sussing out short-term changes in the market, versus trend-following indicators, which are more
useful for longer-term trends.
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MAC-D BEARISH AND BULLISH CROSSOVER 

A bearish crossover shows that sellers or short-sellers are

gaining control and a drop or continued weakness is likely in a
stock's price.
The MACD is composed of two moving averages, a fast line and
a slower MACD line. When the fast line crosses below the MACD
line from above it, it is a bearish crossover.

A bullish crossover occurs when the MACD turns up and crosses

above the signal line.
A bearish crossover occurs when the MACD turns down and
crosses below the signal line. Crossovers can last a few days or a
few weeks, depending on the strength of the move.
BEARISH CROSSOVER
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BULLISH CROSSOVER 10
ADX 11

ADX is used to quantify trend strength. ADX calculations are

based on a moving average of price range expansion over a
given period of time.
The default setting is 14 bars, although other time periods can
be used. ADX can be used on any trading vehicle such as
stocks, mutual funds, exchange-traded funds and futures.
PRIMARY TREND + TRIPLE BOTTOM REVERSAL 12

The primary trend the overall direction of the marketand is the longest lasting trend. Often, the trend lasts
for years.
It moves up and down with the economic cycles; hence, it is the most predictable.
The primary trend also always an up trendor a downtrend; it is never a sideways trend.

A triple bottom is a bullish chart pattern used in technical analysis that's characterized by three equal
lows followed by a breakout above the resistance level.
A triple bottom is a visual pattern that shows the buyers (bulls) taking control of the price action from
the sellers (bears).
THANK YOU
SUBMITTED BY:
SIMONI RANAWAT
TYBFM
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