1 / 43

Using its tools to spot Chart Patterns, Candle Patterns, Ratios, and Divergences.

TASUG Meeting – November/2003. Using its tools to spot Chart Patterns, Candle Patterns, Ratios, and Divergences. Andy Nogueira. Part I - Stockcharts Tools. Breadth Charts Market Carpet PerfCharts SharpCharts StockScans. Home Page. Candlestick Patterns Bullish / Bearish

Albert_Lan
Download Presentation

Using its tools to spot Chart Patterns, Candle Patterns, Ratios, and Divergences.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. TASUG Meeting – November/2003 Using its tools to spot Chart Patterns, Candle Patterns, Ratios, and Divergences. Andy Nogueira

  2. Part I - Stockcharts Tools • Breadth Charts • Market Carpet • PerfCharts • SharpCharts • StockScans Home Page

  3. Candlestick Patterns Bullish / Bearish Divergences Positive / Negative Chart Patterns Reversal / Continuation Ratios Intermarket Analysis Part II – Using Stockcharts to spot

  4. Breadth Charts • Shows Market Breadth for • NYSE • Advancing / Declining • Highs / Lows • NASDAQ • Advancing / Declining • Highs / Lows • AMEX • Advancing / Declining • Highs / Lows Page 1 Page 2

  5. Market Carpet • Lets you see at a glance what the entire market is doing as well as the sectors and companies within the market. • Available Predefined Carpets • S&P Sector Carpet • Market Summary Carpet • Fidelity Fund Carpet • Rydex Fund Carpet • Toronto Stock Exchange

  6. Perfcharts Carpet • Lets you compare two or more different stocks, indices, or mutual funds during a period of time. • Display price performance lines for up to 10 different financial datasets • Line Graph or Histogram (Total Return)

  7. Line Graph

  8. Histogram

  9. Sharpcharts • Create bar charts, line charts and candlestick charts for more than 20,000 stocks, indices, and mutual funds. • Intraday, daily, weekly and monthly charts in a variety of sizes and color schemes • Create lists of annotated charts

  10. Annotated Charts

  11. Stock Scans • Create your own scans to find stocks in the database that meet certain technical conditions and criteria • Predefined Scans: • Technical Indicators • Candlestick Patterns • P&F Alerts Page

  12. Candlestick Patterns • Bullish Patterns • Morning Star • Bullish Abandon Baby • Bullish Engulfing • Bearish Patterns • Evening Star • Dark Cloud Cover

  13. Candlestick Formation UP DOWN

  14. Morning Star •  A downtrend is under way • First day is a long black day • Second day gaps below the 1st day's close • Third day is a long white day.

  15. Morning Star

  16. Bullish Abandon Baby • A downtrend is under way • First day is a black day. • Second day is a doji whose shadows gaps below the 1st day's close. • Third day is a white day with no overlapping shadows.

  17. Bullish Abandon Baby

  18. Bullish Engulfing • The color of the first day's body reflects the trend. • The second real body should have the opposite color of the first real body. • The second day's real body totally engulfs the first day's body.

  19. Bullish Engulfing

  20. Evening Star (Bearish) • First day is a long white day. • Second day gaps above the first day's close. • Third day is a long black day.

  21. Evening Star (Bearish)

  22. Dark Cloud Cover (Bearish) • First day is a long white day • Second day is black with an open above the high of the previous day • Second day closes within but below the midpoint of the first day’s body

  23. Dark Cloud Cover (Bearish)

  24. Divergences A divergence occurs when the trend of a security's price doesn't agree with the trend of an indicator. • Positive Divergence • Occurs when the indicator moves higher at the same time the stock price is declining. • Negative divergence • Occurs when the indicator moves lower as the stock price continues to rise.

  25. Chart Patterns • Reversal Patterns • Head and Shoulders • Double Top (Bottom) • Continuation Patterns • Flag

  26. Head & Shoulders • Consists of a peak followed by a higher peak and then a lower peak with a break below the neckline. • Volume Confirmation • First peak - High volume • Middle peak - Moderate volume • Third peak - Low volume • A sharp increase in volume on the break below the neckline

  27. Double Top • Made up of two consecutive peaks that are roughly equal, with a moderate trough in between • Volume contracts on second peak as a further indication of weakening demand. • Support must be broken in a convincing manner, and usually with an expansion of volume Double Top

  28. Flags (Continuation) • Mark a small consolidation before the previous move resumes. • Volume confirmation: • Expands to form the flagpole • Contracts during the flag's formation • Expands after the resistance breakout. • Usually the price target is the length of the flagpole

  29. Ratios • Intermarket Analysis • Intermarket Technical Analysis is the study of the relationships between the four major financial markets: Stocks, Bonds, Commodities and Currencies. • 30 Year US Bond / S&P 500 • US$ Dollar / Gold

  30. Links and Suggested Reading • Links • Stockcharts.com • Prophet.net • Hotcandlestick.com • Equis.com • Leavittbrothers.com • Chartpatterns.com • Suggested Reading • Japanese Candlestick Charting Techniques - Steven Nison • Beyond Candlesticks - Steven Nison • Technical Analysis of Stock Trends - Robert Edwards & John Magee • Encyclopedia of Chart Patterns - Thomas N. Bulkowski • Andy Nogueira – andy_nogueira@sympatico.ca

More Related