Rajendra's - PYT - Seminar 07-03-2021 @ Vizag DAY 2.pptx

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1. By, Rajendra Balusu INH200007016 Basics of Technical Analysis

2. Investing VS Trading …

3. SHOULD I BUY TODAY ? WHAT WILL THE PRICE BE TOMMOROW/NEXT WEEK/YEAR ? WHY DO I MAKE LOSS ? TECHNICAL ANALYSIS WILL GIVE ANSWERS TO ALL THESE QUESTIONS. COMMON QUERIES

4. How to read charts?…

5. Technical Analysis is the forecasting of future financial price movements based on an examination of past price movements. Like weather forecasting, technical analysis does not result in absolute predictions about the future. Instead, technical analysis can help investors anticipate what is "likely" to happen to prices over time. Technical analysis uses a wide variety of charts that show price over time. Technical Analysis

6. Technicians say that a market's price reflects all relevant information, so their analysis looks more at "internals" than at "externals" such as news events. Price action also tends to repeat itself because investors collectively tend toward patterned behavior -- hence technicians' focus on identifiable trends and conditions. Market action discounts everything Prices move in trends History tends to repeat itself

7. Types of Charts A price chart is a sequence of prices plotted over a specific time frame. In statistical terms, charts are referred to as time series plots.

8. Line Charts

9. Bar Charts

10. Candlestick Charts

11. CANDLE STICKS PATTERN

12. PRICE SPEAKS Price is a consensus between a Buyer and a Seller. Price is created due to contradictory views in the market. Important Price Fields – O, H, L, C Price talks to you. Market works on – Demand & Supply.

13. CHAT WITH THE CANDLESTICK Helps In Risk Management Stop Loss – Where Do We Implement It? In Case Of Buy = Below Low In Case Of Sell = Above High Stop Loss – It has to be implemented on the EVENT candle.

14. VARIOUS TYPES OF DOJI DOJI LONG LEGGED DOJI DRAGONFLY DOJI GRAVESTONE DOJI 4 PRICE DOJI

15. LIVE EXAMPLE Nifty 28-01-21 O-13810 H-13898 L-13713

16. BANK Nifty 29-01-21 O-30700 H-31111 L-30254

17. ICICI BANK 29-01-21 O-533 H-544 L-529

18. DLF 26-11-20 O-183 H-186 L-179

19. DREDGECROP 12-11-20 O-241 H-244 L-239

20. USUALLY FORMS IN A DOWNTREND USUALLY FORMS IN AN UPTREND HAMMER & HANGING MAN

21. LIVE EXAMPLE HAMMER~ AKZO INDIA

22. LIVE EXAMPLE FAGBEARING 02-02-20 O-4323 H-4325 L-4258

23. GOACARBON 01-02-20 O-250 H-257 L-234

24. HAVELLS 22-09-20 O-673 H-673 L-645

25. LIVE EXAMPLE HANGING MAN~AMBUJA CEMENT

26. HCLTECH 01-02-21 O-919 H-933 L-896 C-928

27. HEROMOTOCO 22-12-20 O-3020 H-3060 L-2900

28. DELTACROP 07-09-18 O-271 H-274 L-265 C-273.5

29. 23-04-18 O-2123 H-2142 L-2095 C-2135 DRREDDY

30. Volumes Role Importance of Volume, Volume Breakouts Price Breakouts , Importance of Volume in different events

31. What is a Volume Breakout? A breakout in resistance accompanied by strong volume: Breakout of Resistance to the upside Volume should be high

32. Volume Amount of shares that trade hands between seller and buyers Price movements more significant when volume is above average

33. A stock is said to break out on strong volume, when a strong resistance is broken on high volume. we had highlighted 2 factors that are very important for ensuring that a resistance level is strong. These are :- 1) The number of touches on the resistance. 2) The volume at the time of the breakout. HOW TO IDENTIFY GOOD VOLUME BREAKOUTS …

34. The number of touches should be high and the resistance should be well-defined. The volume should be high on the day of the breakout compared to the 50DMA, the higher the better.  Before the breakout, if the stock has gone down on low volume, it’s a plus. For short-term and long-term breakouts, it also helps if the fundamentals are good.

35. Volume is among the most basic and effective concepts to understand when trading stocks. Volume is actually the number of shares (or contracts) that trade over a certain period of time (example :- A day for daily 15,30 mints timeframe). The higher the volume, more active the shares. Volume plays a significant role in the buying and selling of the stocks. Most traders combine the volume with the price of the stock to take the trading decision. Volume bars visualize the amount of shares that have traded per time period and show trends in the same manner that prices do and can be usually found at the bottom of any chart. Importance of Volume

36. Increasing price along with increasing volume, confirms the uptrend and is a healthy sign of a strong uptrend and hence is Bullish. Decreasing price along with decreasing volume is Bullish because it indicates weak retail investors are selling and hence is not a reason to worry. This is probably a good thing because once the consolidation happens, the breakouts will be much stronger.

37. Decreasing price along with increasing volume indicates that the big guys are selling and hence is Bearish. Increasing price along with decreasing volume indicates weak retail investors are buying and is a cautionary sign and should make you doubt the upward price movement (i.e. it is Bearish).

38. NILKAMAL Volume BreakOut Volume BreakOut & Price BreakOut LIVE EXAMPLES

39. AUROPHARMA Volume BreakOut & Price BreakOut

40. ADANIENT Volume BreakOut & Price BreakOut 25.08.20 O-252 H-322 L-250 Now Trading Stock around 850 level Stock didn't breakdown this bar low and stock given Solid Return

41. QUESS Volume BreakOut & Price BreakOut 20.11.20 O-410 H-473 L-407 Now Trading Stock around 800 level

42. DBL 11.01.20 O-412 H-438 L-407 Now Trading Stock around 680 level

43. Investors must always look at price patterns in conjunction with their associated volume pattern, never alone. A stock may appear to go up but the volume pattern must confirm that analysis. Careful analysis of the volume of selling that occurred above current resistance will help you estimate how long a stock will stall at that level. TIPS ON VOLUME ANALYSIS

44. Well-above-normal volume is essential when separating a true from a false breakout above resistance. If a stock is truly in a healthy uptrend, then volume should rise as prices rise. If this is the case, then the volume indicates that buyers are chasing the stock. This increases the probability that the uptrend will continue.

45. This is just a correction…

46. Comparison Between NIFTY & FMCG Space NIFTY NIFTY FMCG Daily Daily Compare to NIFTY Under performing Sector FMCG

47. NIFTY NIFTY FMCG Weekly Weekly

48. Comparison Between NIFTY & MEDIA Space NIFTY NIFTY MEDIA Daily Daily Compare to NIFTY Under performing Sector MEDIA

49. Stock market in Modi Government…