Unlocking Investment Fundamentals
13 Chapters | Duration:5Technical Analysis Indicators Patterns
This module focuses on key technical analysis indicators and patterns, including chart patterns, reversal and continuation signals, momentum indicators like MACD and RSI, and volume analysis, designed to help traders enhance their skills.
Course Objectives
Understand chart patterns and their role in trading.
Recognise and interpret reversal patterns for trend changes.
Identify continuation patterns for trend confirmation.
Learn the use of momentum indicators for entry/exit points.
Apply volume analysis and gaps to predict market movements.
- Chapter - 15 mins read
Introduction to Chart Patterns
In this module, we deepen our journey into technical analysis by exploring the concept of chart patterns in the stock market. As we've learned so far, the visual side of trading lies in patterns that form when price movements begin to take distinct shapes. These recognisable formations (known as chart patterns offer valuable insights into potential price behavior, whether it’s a continuation of the current trend or a reversal.
- Chapter - 25 mins read
Reversal Patterns: Understanding Trend Reversals in Stock Markets
Every market trend eventually reaches a turning point. In the world of trading and investing, understanding when a trend is losing momentum is crucial. Trends, whether bullish or bearish, do not last forever. At some point, they pause, consolidate, and reverse. This is where reversal patterns come into play.
- Chapter - 35 mins read
Continuation Patterns: Decoding Price Action
Chart patterns are powerful tools that reveal the psychology behind price movements. These patterns, formed by price action, often repeat across different timeframes and market conditions, making them vital for traders. As trends mature and begin to consolidate, they frequently form identifiable shapes that hint at future direction.
- Chapter - 45 mins read
Moving Averages in Technical Analysis
In technical analysis, identifying the underlying trend of a stock is critical. One of the most effective tools that help traders do this is the Moving Average. This statistical method smoothens short-term price fluctuations and highlights the long-term trend, allowing traders to make informed decisions with clarity and confidence.
- Chapter - 53 mins read
Timeframes in Technical Analysis
In stock market trading, timing is everything. A trade that appears promising can quickly turn into a loss if entered or exited at the wrong moment. The ability to align with the right trend for the right duration is what often separates a profitable trader from the rest.
- Chapter - 63 mins read
Fibonacci Retracement: A Mathematical Perspective to Stock Trading
What’s common between a lily, a buttercup, and a daisy? Besides being different types of flowers, there's a fascinating pattern hidden in their petals—the number of petals on each aligns with Fibonacci numbers! Lilies have three, buttercups have five, and daisies can have 21 petals, all part of the Fibonacci sequence. Nature is full of such examples.
- Chapter - 75 mins read
Time Cycles
Cycles are recurring patterns that unfold over consistent time intervals. These cycles exist in many areas of life (from changing weather patterns to economic conditions) and the financial markets are no exception.
- Chapter - 85 mins read
Indicators and Broad Types of Indicators
In technical analysis, charts created from historical price data help traders understand previous trends. But what exactly are indicators, and how do they enhance trading decisions? Technical indicators are mathematical tools that analyse price and volume data to project potential market movements. These calculations are plotted alongside or below price charts to provide additional insight into trend strength, momentum, and reversals.
- Chapter - 94 mins read
Momentum Indicators or Oscillators
In the previous chapter, we briefly introduced the concept of momentum indicators, also referred to as oscillators. These are essential tools that help traders analyze both the trend direction and momentum strength of a security’s price.
- Chapter - 104 mins read
Top and Bottom Indicators
In previous chapters, we've explored various candlestick patterns and chart formations like double tops and bottoms, island reversals, head and shoulders, and wedge patterns, each serving as a potential signal for a shift in trend direction. Additionally, we’ve examined the use of momentum oscillators such as RSI, MACD, and Stochastics.