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Technical Analysis and Investing

Technical Analysis and Investing. Candlestick Charting. What is Technical Analysis?. This approach gives little regard to the underlying fundamentals of the company, Eg . What they do or their financial statements.

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Technical Analysis and Investing

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  1. Technical Analysis and Investing Candlestick Charting

  2. What is Technical Analysis? • This approach gives little regard to the underlying fundamentals of the company, Eg. What they do or their financial statements. • A Technical analyst studies the fluxuating price and volume of the stock, looking for signals to buy or sell. • In Technical Investing, It is the share price that “Tells the story”

  3. Candle Stick Charting In candlestick investing, we summarize the price movement of stock over a period of time (hour, day, month) into a single symbol, the candlestick

  4. Candle Stick Charting If the stock closed higher than it opened If the stock closed lower than it opened Empty Solid

  5. Long vs. Short Bodies • Long white candlesticks show strong buying pressure. The longer the candle, the more pressure on the stock to go up. • Long black candlesticks show strong selling pressure. The longer than candle, the more pressure on the stock to go down.

  6. Reversal Patterns A hammer can be seen a sign that stock has hit bottom and is a time to buy A hanging man can be seen a sign that stock has peaked and is a time to sell.

  7. More Reversal Patterns A inverted hammer can be seen a sign that stock has hit bottom and is a time to buy A shooting star can be seen as a sign that the stock has peaked and is a time to sell.

  8. What signs do you see? And on what days?

  9. Go to StockCharts.com • Look up the Candlestick Charts for: • IBM • Apple • TD • Loblaw's • EnCana • Find three patterns or trends in each chart. Did the pattern hold true? Eg. Did the price increase after anInverted Hammer?

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