Part 26 Technical Analysis – Initial balance

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Advanced Technical Analysis

Course Overview

eduCBA brings you this Awesome course on Advanced Technical Analysis Training. This detailed course will help you understand all the important concepts and topics of Advanced Technical Analysis.

Advanced Technical Analysis Training Courses

Study the past to learn the future. That’s the basic idea behind the seemingly complex subject of technical analysis. Those in the profession are often called “chartists”, besides being more popularly known as technical analysts. They use mathematical and statistical formulas and data visualizations on the price movement for studying the performance of an asset class over time. They then advice on buy, sell, or hold recommendations, depending on history repeating itself. There are several technical analysis tools that can be used automatically, or in combination, to arrive at a supply-demand trading strategy.

The advanced technical analysis training course is designed for individual stocks, exchange traded funds, index futures, and similar other instruments for analyzing the market trends and behaviors so as to distinguish, classify, and properly time the trades. In this course you’ll learn how to determine a market’s overall direction and then take a call which is congruous to the market. Curriculum of the advanced technical analysis training course is focused on price-based technical analysis using major indices as forecasting instruments.

Valuation, Hadoop, Excel, Mobile Apps, Web Development & many more

There are a number of approaches to technical analyses. These include the Elliot wave theory, Dow Theory, cyclical analysis, Fibonacci analysis, and many others. The most popular methods are divided into two key branches, known as the statistical approach and chart analysis (commonly known as charting). With the chart analysis, the technical analyst tries to hunt for patterns forged by price movements of a particular stock and one that occurs repeatedly. Patterns like double bottoms or head and shoulders, for instance, are taken as typical chart patterns. When the technical analyst detects such a pattern, he/she executes a trade depending on the price direction expected to be followed, depending on the pattern.

The other branch, statistical analysis, is comprised mostly of research and use of many technical indicators. These are derived from the historical market data of the stock and are largely used to forecast changes or reversals regarding the strength of trend. Several of these statistical indicators project buy and sell points. There are various types of indicators, from simple ones like moving averages, to a more complicated one like the swing index, for which complex mathematical formula of several lines is used. Technical analysis monitors the price movement of the stock and may not recommend a buy or sell call. It’s the analyst who has to read into the analysis and decide.

What you’ll learn

Here are some of the key concepts you’ll learn in the advanced technical analysis training course.

  • In-depth introduction to advanced technical analysis along with its merits. Also, understanding trader psychology and how to trade successfully by forging the perfect blend.
  • The key traits required to become a seasoned technical trader along with the disciplines you have to adhere.
  • Understanding how to come up with a healthy trading psychology that has to be different from the crowd.
  • Principles of Dow Theory i.e. interpreting trends and then combining them with all support and resistance levels to sharpen the entry and exit signals for both positional and day trading.
  • Understanding chart patterns, the psychology that works behind a chart pattern and its formation, interpreting the patterns, the importance of volumes while using the patters, and finally, evolving a trading strategy that’s based on the patterns.
  • In-depth study of the moving average concept and the role it plays to determine the trade. Learning the multiple uses of moving averages at different time horizons for the trades.
  • Setting unconventional as well as classical indicators and their application towards positions, investments, and day trading.
  • Using Fibonacci to set price targets.
  • Trading in Futures and Options with a fundamental study of risk, reward, and timing related to the derivative-based trading approach.
  • Exposure to real life circumstances using mechanical systems along with technical analysis. You learn about running scans and stock picking on a real-time basis.
  • Money management and coming up with a mechanical trading system.

What is advanced technical analysis?

Simply put, advanced technical analysis is the study of investment behavior and the effect it has on price action of financial instruments. The key data we need to carry out our study include the price history of the stock or the particular financial instrument, along with the volume and time information. It helps us to form our views, depending on certain facts.

Technical analysis versus fundamental analysis

Fundamental analysis is concerned with determining the value of stocks and similar other trading and investment instruments. Fundamental analysts bother themselves with the complex relationships between demand forecast, financial statements, the quality of the management, growth and earnings, and similar factors. They would then apply their judgment on the stock or commodity, or the financial instrument, which is often relative to the sector or market peers to form a judgment whether it’s over or undervalued.

Most of the stock research carried out by investment banks or brokers are based or company fundamentals. At EduCba, we admire much of this work and take a more practical approach to investing and trading. We analyze the ways by which investors interpret fundamental data and how they behave. This behavior, collectively, is called investor sentiment. It’s often the key factor to determine the fair price of an instrument.

Technical analysis, on the other hand, holds the key to monitor investor sentiment. Many experts and investors believe that technical and fundamental analysis is exclusive of each other. But the fact is that both of them are actually complementary and works together and informs you what and when to sell or buy. Most successful traders use a combination of fundamental stock selection and technical analysis timing filters with profitable results.

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It should be remembered that technical analysis, particularly chart reading, is highly subjective. The success is hugely dependent on the experience of the advisor or user. A more experienced analyst will be better equipped to determine the pattern of the price movement or a probable trend reversal. That’s one of the major reasons why most stock traders combine fundamental analysis with the technical part. In such cases, technical analysis is the most suitable to plan the buy and sell points for the positions. It makes the difference between the profit or loss derived from a stock, especially in Futures and Options trading.

Important points of technical analysis

Here are some of the main things we get from technical analysis.

  • Study of the price charts i.e. historical prices of a stock in conjunction with the present
  • Works best for stock that are traded in huge volumes.
  • Largely based on the law of demand and supply
  • Projects the mindset of a greater number of people

Course description

The advanced technical analysis course description is as follows.

  • Introduction: You are introduced to technical analysis concepts in this section.
  • Moving averages: This section is divided into six parts. You get to learn about the types of moving averages, time span, exponential moving average, the 100 day EMA chart, simple versus exponential moving average, and moving average settings.
  • Understanding momentum: Topics covered in this section include introduction to momentum principles, rate of change indicator, selection of the time span, interpretation of momentum characteristics, and oscillatory characteristics in the bull and bear markets.
  • Overbought and oversold: This section is divided into six parts. It includes understanding of the overbought and undersold region, overbought and oversold crossovers, mega overbought, oversold and extreme swings, simple and complex divergence, and smoothed momentum indicator.
  • Float and float turnover: This section is divided into 15 parts. Topics covered include introduction to float analysis, the float and float turnover, smart money and losing money scenario, importance of float analysis at the top and bottom, the principle of float analysis, 10 discoveries to understand float formation, inverted flag formation, understanding and profiting from the float turnover, redefining support and resistance, valid breakouts, successful strategies, playing the upside and downside, and float analysis formation.
  • The art of asset allocation: This is the last part of the curse. You’re introduced to the art of asset allocation, followed by the process, personal investment strategy, suggested allocation, and seven steps to plan your financial life.

Requirements

This is an expert level course and a bachelor’s or a master’s degree in a business major, like finance or economics is required to pursue it. Mathematics or statistics graduates are also eligible. Some firms require their technical analysts to be MBAs. Though it’s an expert-level course, it begins with the fundamentals of technical analysis, following which you’ll learn about the various advanced strategies. Every individual who wants to make a career out of the stock market can join this course. It’s open to working professionals, students, retired officers, housewives, novice traders, business personnel and any other interested person.

Technical analysts must have both analytical and critical thinking skills. They have to deal with the public in general and present strategies and financial data. They should have good communication skills. Those wanting to join the advanced technical analysis training course must have experience in working with electronic spreadsheets and analysis software. We recommend participants to take the technical analysis with iCharts training before joining this advanced course.

Target audience

The advanced technical analysis training course is targeted at the following.

  • Undergraduates who want to make a career in technical analysis.
  • Students wanting to seriously pursue technical analysis as a career.
  • Investors and traders who want to make money in the capital markets using advanced technical analysis.
  • Non-finance professionals and career changers who want to cultivate an extra area of proficiency or people seeking to change their career into stock trading.
  • Investment and treasury professionals working with banks or nonbanking financial institutions.

FAQs: Some general questions

  1. How can I take the course?

The entire course will be conducted online with video tutorials. There are more than seven hours of HD videos with over 38 lectures by expert faculty.

  1. Do you provide any placement services?

No. EduCba trains professionals to become leaders of the market. They emerge as experts in their own fields. Our trainees have reportedly got better job offers than others.

  1. Can I take a break from the course?

All our courses are self-study and you can take them at your convenience. But a long gap between two sections is not advisable because that disturbs the flow of learning.

  1. From where can I access the tutorials?

Since all our courses are conducted online, you can access them from all over the world. A computer and a broadband connection are all that you need.

Testimonials

Sudhindra Khaitan

“The advanced technical analysis course by EduCba really helped me to make a mark in by stock broking career. I can now advice my clients better on trading strategy.”

Pushpa Kedia

“I am a chartered accountant by profession. I would like to thank EduCba for all the quality technical analysis training they gave us. I got to know many important concepts that I couldn’t understand before.”

Sushil Ayyar

“EduCba doesn’t support the mugging up concept. You have to understand all the concepts and only then you can make a mark as a technical analyst. The course was very enjoyable.”

Pratik Poddar

“Thanks to EduCba, I am working as a technical analyst in a top broking firm. I got several job offers after I took the course. I joined it after completing the technical analysis with iCharts training course from EduCba.”

Career benefits

Some of the major career of the course is given below.

  • Know how to prepare for the trading day and according to market conditions
  • Identify the market moves before they take place
  • Pocket large one-three daily gains using the swing trading technique
  • Have control on your order flow and act like a market maker
  • Identify the correct trading style, develop it, and know how to adapt to the changing market conditions.
  • Master and operate a good and sophisticated trading platform with a technical analysis software which is used by professional traders.
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Potcoin Price Technical Analysis – Initial Target Hit

Key Highlights

  • Potcoin price declined and broke the highlighted channel support area to trade lower.
  • The price traded close to the last swing low of 0.00000259BTC and looks set for more losses.
  • A new low might be created by sellers if there is a divergence created on the hourly RSI.

Potcoin price moved lower and it looks like sellers might attempt to create a new weekly low in the near term.

New Low?

We forecasted a break in the Potcoin price below the highlighted channel support area. There was a break, as sellers stepped in for a downside move. The price declined and traded close to the last swing low of 0.00000259BTC. The price is trading below the 100 hourly simple moving average, which is a bearish sign and could ignite more losses in the short term. We need to see how the buyers react around the last low and whether there is a break or not.

There was a perfect failure around the 38.2% fib retracement level of the last drop from 0.00000370BTC to 0.00000259BTC. It also means that the price completed a short term correction and might continue to move lower. If sellers manage to clear the last low of 0.00000259BTC, then the price could head towards 0.00000220BTC. Any further declines might be dependent on how buyers defend the downside. No doubt, there is a lot of bearish pressure on the price and if it continues more losses are possible.

If the price moves higher from the current levels, then the broken trend line and support area might come into play and act as a hurdle for buyers.

Intraday Support Level – 0.0000059BTC

Intraday Resistance Level – 0.00000290BTC

The hourly RSI is below the 50 level, which is a sign that sellers are in control as of now.

Charts courtesy of Cryptrader

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial.

Fundamental Analysis vs Technical Analysis

Differences Between Fundamental Analysis and Technical Analysis

Fundamental analysis refers to the analysis of financial aspects of business like financial statements and financial ratios and other factors like economic and others affecting the business to analyze the fair market value of its share/security whereas technical analysis refers to the analysis of share/security fair price by examining and analyzing the past trends and changes in price of shares and by studying historical information of business.

Fundamental analysis is a methodology of stock valuation which evaluates a stock based on its intrinsic value (fair value). On the other hand, technical analysis is a methodology of stock valuation which evaluates a stock on the basis of charts and trends and predicts the future price of the stock.

Both methods are used for evaluating the stock and prediction of future stock prices but while fundamental analysis focuses on the intrinsic value of the stock, technical analysis focuses on the past trend of the price movement of stock.

Just to give you some examples:

Martin Schwartz, a successful wall street trader, gained reputation and wealth due to Technical Analysis. Whereas, Jim Rogers, a popular investor owes his success to fundamental analysis. Both of them may disagree on many concepts. But they will surely agree that emotional control is the most important path to follow.

What is Fundamental Analysis?

Fundamental analysis aims to find the enterprise value of the company. This means arriving at its Intrinsic price. This kind of analysis uses Economic factors. These factors prove the fundamental elements to determine the price. So if you are opting for the Fundamental route, be sure to perform the following analysis:

  • Industry Analysis
  • Company Analysis
  • Economic Analysis

Major Assumptions:

  • In the long run Stock Price corrects itself.
  • You can make gains by purchasing an under-valued stock and then wait for the market to correct itself.

This investing technique is adopted by buy, hold and value investors.

What is Technical Analysis?

It is also a method of evaluating Securities. But the entire game here is dependent upon the statistics generated by the market. Charts and patterns are the Bread and Butter of technical analysis.

So let’s see what are the characteristics of technical analysis:

  • This analysis uses past price movements to predict future price movements.
  • Trends and Patterns play a major role, rather than the Intrinsic Value.
  • Market Price is everything. Factors affecting it are not considered, like in fundamental analysis.

The Three Golden Rules:

Technical Analysts adhere to these three Golden Rules:

  • First Rule: Prices discount all information available to the public.
  • Second Rule: Price movements are not random. Trends behind the price action can be established by using Technical tools.
  • Third Rule: Price Trends are likely to repeat themselves.

Fundamental vs Technical Analysis Infographics

Let’s see the top differences between Fundamental vs Technical Analysis.

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