Technical Analysis Workshop

How many times have you wished to know why some people usually make money in the markets?  The answer is simple they use technical analysis.

So what is technical analysis (TA)? Simply put TA is the use of charts to identify patterns and predict future activity.

Many different factors affect the price of a stock anything from the weather, fed interest rate hikes or cuts, inflation, and the list goes on! Stocks go up and down. We can do little to predict exactly how a stock will react tomorrow. What we can do however is look at what a stock has done in the past, and from that, gauges an approximation of how it should act in the future.

The primary focus of technical analysis is on the movement of prices. Charts show how prices are moving (or not moving), when prices are trending, as well as the strength of those trends. Volume, oscillators and momentum give a clearer picture of market action.

Charts tell a story about the personality and price movement of a share. The story can be complex with many different twists or quite simple with only a few characters. Charts are the same way. They can provide only the most basic information on a trend or support and resistance.

However, deeper analysis provides information on the strength of a trend, if momentum is building and whether formations are developing. Share Direct will help the investor to analyse the movement of a share in order to make sound and profitable trades.

After attending, our one-day practical Technical Analysis workshop the investor will know exactly which indicator to use to analyse a share, identify a pattern and establish a trend.

Lecturer: Nicolle Wepener

Method of teaching: e-Learning

Important:  Please remember to bring your PC along.

*A Practical Synopsis of our Technical Analysis Workshop

1. Technical Analysis Theory
• The Dow Theory
• Trading and Trending Shares
• The Technical Toolbox

2. The Moving Average
• What is a moving average?
• The Difference between simple and exponential moving average 
• How to use the moving average (crossovers) and their “characteristics”
• How to determine a trend from a MA
• Shortcomings of a moving average - important to know where and why they do not work
• Practical examples on each point

3. Bollinger Bands
• Explain how they work and show examples 

4. OBOS Index
• Explain how it works (buy line)
• Highlight shortcomings

5. The MAC-D
• What it is and how it works
• Similarities with the MA
• Shortfall similar as the MA
• Ways of using the MAC-D (OBOS/Buy & Sell through 0)
• Practical  examples on how to use the MAC-D

6. Momentum
• Momentum explained with examples

7. RSI – Relative Strength Index
• Difference between PR and RSI
• How it works
• OB & OS positions (30 & 70)
• Know how to use it
• Examples and application

8.  Stochastic
• What it is and how to use it
• OB & OS positions
• Examples on where to buy and sell with Stochastic

9. Volume
• What is Volume
• How it affect the market
• Practical examples

10. On Balance Volume
• Indicator explained with practical examples

11. Bar Graphs and Candlestick Graphs
• How to interpret both and the differences
• Candlestick Formations

12. Trend Lines
• How to draw trend lines and why
• Do examples and exercises
• What is a Trend
• Support and Resistance
• Understand what is support and resistance
• Support and resistance with trend lines and horizontal lines/levels
• Do exercises
• Formations and Patterns
• Hand out with patterns
• Focus on Head and shoulders / double tops and bottoms/ flags
• Identify patterns
• Ascertain effective targets from pattern identification
• Examples and practical application

13. Fibonacci
• The Theory of Fibonacci
• How to use and interpret Fibonacci retracements

14. Addendum
• More information of Technical Analysis

Contact: Tinka Paul at tinkap@sharedirect.co.za or (+27) 0861 742 733 for more details.