Technical Analysis - TechnicalAnalysisandInvesting...

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 4/12/11 Technical Analysis and Investing YOSH back in the day……………….
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 4/12/11 Charlie Dow
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 4/12/11 Technical Analysis: Dow Theory Six Basic Tenets of Dow Theory……. .  Tenet One: Market has Three Movements   1) The “Main Movement” primary trend lasting from  one to several years. 2) “Medium Swing” which involves retracement from  the primary trend and generally retraces between 33%- 66%. 3) “Short swing” short movement from hours to 
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 4/12/11 Dow Theory by Charlie Dow Tenet Two: Markets have three phases 1)Accumulation Phase: investors “in the know” are  trading against the widely held view of the market.  Consequently, price action is muted. 2) “Mainstream” investor catch on with the same view  and price action moves dramatically in the direction of  the astute investor position.
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 4/12/11 Dow Theory Tenet Three : Stock market discounts all news Tenet Four: Stock market averages must confirm each  other. Tenet Five: Trends are confirmed by volume. Tenet Six: Trends exist until definitive signals prove 
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 4/12/11 Chart Types: Daily Bar Chart The top of the line is the highest  recorded price  The bottom of the line is the  lowest recorded price  The horizontal line on the left is  the opening price  The horizontal line on the right  is the closing price.
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 4/12/11 Daily Bar Chart: H/L/C
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 4/12/11 Line Chart: Settlement
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 4/12/11 Support & Resistance
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 4/12/11 Volume/Open Interest with Bar Chart
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 4/12/11 Charts: Bull/Bear Channels
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 4/12/11 Head and Shoulders Pattern: If the market breaks below the “neck line” look out  below. However, if the neck line holds and the market 
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This note was uploaded on 04/11/2011 for the course FIN 321 taught by Professor Blose during the Winter '07 term at Grand Valley State University.

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Technical Analysis - TechnicalAnalysisandInvesting...

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