Technical Analysis

12 sheets available

Dow Theory

Dow Theory, developed by Charles Dow in the late 19th century, is the foundational framework of technical analysis. It establishes core principles about market trends, phases, and confirmation signals that remain the basis of modern charting.

Ch. 1Read

Trends & Supports

Trends, Support and Resistance

Trends, support, and resistance are the most fundamental concepts in technical analysis. A trend defines the dominant direction of price movement, while support and resistance levels identify where buying and selling pressure concentrates.

Ch. 2Read

Chart Patterns

Chart patterns are recurring geometric formations on price charts that technical analysts use to forecast future price direction. They are classified as continuation patterns (signaling the trend will resume) and reversal patterns (signaling the trend will change).

Ch. 3Read

Japanese Candlesticks

Japanese candlestick charting, developed by Japanese rice traders in the 18th century and introduced to the West by Steve Nison in 1991, is the most widely used method of visualizing price action. Each candlestick shows the open, high, low, and close for a given period.

Ch. 4Read

Moving Averages

Moving averages smooth price data to identify the underlying trend direction. They are the most widely used technical indicators, serving as dynamic support/resistance levels and generating trend-following signals through crossover systems.

Ch. 5Read

Fibonacci

Fibonacci Retracements and Extensions

Fibonacci tools use mathematical ratios derived from the Fibonacci sequence to identify potential support/resistance levels and price targets. The key ratios -- 23.6%, 38.2%, 50%, 61.8%, and 161.8% -- are among the most widely used technical levels in financial markets.

Ch. 6Read

Oscillators

Oscillators and Technical Indicators

Oscillators and technical indicators are mathematical tools that transform raw price and volume data into actionable signals. They complement trend analysis by measuring momentum, overbought/oversold conditions, and trend strength.

Ch. 7Read

Volume & OI

Volume and Open Interest

Volume is the total number of shares or contracts traded during a given period. Open interest is the total number of outstanding derivative contracts. Together, they provide crucial confirmation of price movements and insights into market conviction.

Ch. 8Read

Intermarket

Intermarket Analysis

Intermarket analysis studies the relationships between four major asset classes -- stocks, bonds, commodities, and currencies -- to identify leading indicators and confirm trends. Developed primarily by John Murphy, it bridges the gap between technical analysis and macroeconomics.

Ch. 9Read

Money Management

Risk Management and Money Management

Risk management and money management are the discipline of controlling position sizes, setting stop-losses, and managing the risk/reward ratio of each trade. They are widely considered more important than entry signals for long-term trading success.

Ch. 10Read

Ichimoku

Ichimoku Kinko Hyo

Ichimoku Kinko Hyo ('equilibrium chart at a glance') is a comprehensive Japanese technical indicator developed by Goichi Hosoda in the 1960s. It provides a complete trading system in a single chart, showing trend direction, momentum, support/resistance, and trade signals simultaneously.

Ch. 11Read

Elliott Waves

Elliott Wave Theory

Elliott Wave Theory, developed by Ralph Nelson Elliott in the 1930s, proposes that market prices move in recognizable fractal wave patterns reflecting the collective psychology of market participants. The basic pattern consists of five waves in the trend direction followed by three corrective waves.

Ch. 12Read