Fundamental analysis is finding out the intrinsic value of the shareTechnical analyst studies the price movements in the marketPrice-volume and supply-demand for overall market and individual stockThe technical analyst tries to study the trend in the market by considering the historical share prices

The price fluctuations reflects logical and emotional forcesThe technician mustIdentify the trendRecognise when one trend comes to an end and prices start in opposite direction.He seldom rely upon a single indicator, as no one indicator is sufficient for prediction

Price is determined by supply and demandAll information is reflected in prices of shareMarket always moves in a trendPast prices predict the future

Based on the doctrine given by Charles H. Dow in 1884.A J Nelson, formalised the Dow theory for economic forecastingThe Analysts used charts of individual stocks and moving averages in the early 1920s.Generally used techniques:Market indicators, volume indicators and other market indicators

He identified three distinct cyclical trends that guide the general direction.Primary trend: long range cycle that carries the entire market up or downSecondary trend: corrects the deviations in the primary trendMinor trend: day to day fluctuationsCharles Dow known as the Godfather of TA

A bull market is when the current up swing is more than the previous up swing and When the current downward movement is bellow the previous then the market is bearish

Minor trend

A support level exists at a price where considerable demand for that stock is expected to prevent further fall in the price level.In support level demand for the particular scrip is expected.The negative swing in the price may be halted.The price of the stocks will never move bellow that. For the time being it may result even in price reversal.

The supply of scrip would be greater than the demand and further rise in price is prevented.The selling pressure is greater and the increase in price is halted for the time being.When the stock prices touches certain level and then drops, this is called resistance levelWhen the stock prices reaches down to a certain level and then rises there exists a support.

If the scrip price reverses the support level and moves downward, it means that the selling pressure has overcome the potential buying pressure signaling the possibility of a further fall in the value of the scrip. It is violation of the support level and bearish market.

If the scrip penetrates the previous top and moves above, it is the violation of resistance level. At this point buying pressure would be more than the selling pressure. If the scrip was to move above the double top or triple top formation, it indicates bullish market.

It need not form on the tops or bottomsIt can also formed in gaps (time when the scrip does not change hands)If the prices are in the upward move and the high of any day is lower than the next days low , the gap is said to have occurred.If the price closes in a price and opens in another price then this indicates the stock has not traded but changes price.

Indicators are used to find out the direction of the market. Indicators are normally price and volume of share tradeThose are price indicators and volume indicatorsAdvances and declines, New Highs and New lows and The most active list are the price indicatorsVolume of trade, Short sales and Odd Lot trading are volume indicators.

Price IndicatorsAdvances and declinesNew Highs and New lowsThe most active listVolume IndicatorsVolume of trade Short salesOdd Lot tradingMathematical IndicatorsMoving AveragesExponential Moving AveragesOscillators:Relative Strength IndexRate of Change

Advances and declines are also referred to as the breadth of the market. It is the difference between the number of shares moving up and number of shares moving down. The net difference is added to the previous day and plotted in a graph. A comparison with the index will show the future market direction. If there is a divergence the change in market is predicted.

DayAdvanceDeclinesNetBreadthNSE NiftyMonday14867747127125876.89Tuesday131096634410565883.33Wednesday8981225-3277295646.46Thursday11081091177465810.17Friday9311279-3483985623.08

Chart1

7125876.89

10565883.33

7295646.46

7465810.17

3985623.08

Bredth

Nifty

Sheet1

BredthNiftySeries 3

Monday7125876.892

Tuesday10565883.332

Wednesday7295646.463

Thursday7465810.175

Friday3985623.08

To resize chart data range, drag lower right corner of range.

It is used as a supplementary to the breadthHigh low differential index is preparedNumber of new highs lead to a rising marketThe number of BSE stocks making new highs minus new lows is averaged for a five-day period.A moving average smooth out erratic daily fluctuations and exposes the trend. Such high-low index would normally move with the market. Divergence is a clue for future movement.

The major newspapers and financial magazines publishes most active list of stock.The number of stocks hardly represents 1% of the total issues but account for around 15% of total volume.The most active list moves ahead of the marketThe movement of the active list helps in predicting the market

Volume of Trade expands as along with the bull market and narrows down in a bear market.The volume will fall with rise in price and vice versaLarge rise in price or large fall in price leads to increase in volumeIf the volume decline for five consecutive days, then it will continue for another four days and the same is true in increasing volume.

Short selling refers to selling shares that re not owned. (Short interest)Bears are short sellers who sell in the hope that they will buy the same in future with a low priceIncrease in short selling increases the future demand and market will become bullishThese indicators cannot be considered in isolation.

Monthly short sales are compared with the average daily volume of the preceding month. The ratio between these two indicates how many days of trading it would take to use up the total short interest.When it is less 1, the market is weak or weakening. Between 1 to 1.5 considered as neutral. More than 1.5 or 2 indicates bullish and highly favorable.

Small investors often do not buy more than 100 shares and such buyers and sellers are termed as odd-lotters.Ratio of odd lot purchases to odd lot sales is the odd lot index. (>1 more buying)If the odd lot volume is increasing shows a bullish market and reverse for bearishIf odd lotters dominates the market the market is considered as technically weak.

Simple Moving AveragesExponential Moving AverageOscillators: Relative Strength IndexRate of Change IndicatorsMoving Average Convergence and Divergence

To smoothen the data moving average technique is used. (Long Term and Short Term)Moving average of 5 days means on the 6th day while calculating average the 1st price is ignored and the 6th price is added and the process continues.It specifies the trend and predicts the future movement of the stockTen or thirty days moving average is used for short term forecasting

DayPriceAverage1-Sep-09123.25-2-Sep-09120.75-3-Sep-09119.9121.34-Sep-09120.25120.37-Sep-09121.6120.58333338-Sep-09121.6121.159-Sep-09122.7121.966666710-Sep-09120.9121.733333311-Sep-09119.2120.933333314-Sep-09118.7119.6

Individual stock price average is compared with market index moving average. Both are plotted in a graph and trend is comparedIf the stock price is below the market index then bearish and reverse for bullishIf the stock price penetrates the index from above then sell signal.If it pushes up from bellow then buy signal

The closing price and the moving average of the stock prices are compared Both the line move along each otherTheir intersection indicates a shift in the moveDownward penetration indicates a fall and upward indicates a rise in the prices

When LT and ST moving averages intersects with each other, a buy or sell signal is indicated.ST moving average intersects the LT curve and falls below, it is bearishWhen the prices are rising the ST intersects from blow giving a buy signalWhen LT is above the ST expect that the prices will rise in near future.

DaysPrices

Chart1

331

352

37.53

364

3936.1

4037.5

40.538.6

38.538.8

4139.8

4240.4

4441.2

42.541.6

4242.3

4442.9

4543.5

Closing Prices

5 day MA

Sheet1

DaysClosing Prices5 day MA

133

235

337.5

436

53936.1

64037.5

740.538.6

838.538.8

94139.8

104240.4

114441.2

1242.541.6

134242.3

144442.9

154543.5

EMA = (Current Closing price Previous EMA) x Factor + Previous EMA

Where n = number of days for which the average is to be calculated.If we are calculating 5 day EMA then the correct EMA will be from 6th day onwards.It is prepared with the price trend then the intersection points are decision points.Factor =

Data sheet

Chart1

82.284.5950617284

81.483.5300411523

81.1582.7366941015

80.0581.841129401

82.0581.910752934

82.3582.0571686227

8181.7047790818

81.381.5698527212

8281.7132351475

83.582.3088234316

83.782.7725489544

80.982.1483659696

79.4581.2489106464

78.8580.4492737643

77.479.4328491762

7577.9552327841

75.277.0368218561

73.875.9578812374

74.175.3385874916

74.5575.0757249944

73.974.6838166629

73.374.222544442

74.2574.2316962946

75.174.5211308631

73.274.0807539087

73.7573.9705026058

74.274.0470017372

76.2574.7813344915

77.175.5542229943

Price

EMA

Sheet1

DaysClosing PriceEMA

190.990.9

290.7590.85

385.789.1333333333Factor0.3333333333`Factor is calculated by deviding 2/(n+1), where n = number of days for which moving avg. is calculated

483.687.2888888889

582.885.7925925926EMA`= (Current price - Previous EMA) x Factor + Previous EMA

682.284.5950617284

781.483.5300411523If we are calculating 5 day moving average the correct EMA will be from 6th day onwards

881.1582.7366941015

980.0581.841129401

1082.0581.910752934

1182.3582.0571686227

128181.7047790818

1381.381.5698527212

148281.7132351475

1583.582.3088234316

1683.782.7725489544

1780.982.1483659696

1879.4581.2489106464

1978.8580.4492737643

2077.479.4328491762

217577.9552327841

2275.277.0368218561

2373.875.9578812374

2474.175.3385874916

2574.5575.0757249944

2673.974.6838166629

2773.374.222544442

2874.2574.2316962946

2975.174.5211308631

3073.274.0807539087

3173.7573.9705026058

3274.274.0470017372

3376.2574.7813344915

3477.175.5542229943

357776.0361486629

367876.6907657753

3777.0576.8105105168

3877.3576.9903403446

3977.4577.1435602297

4076.176.7957068198

4179.4577.6804712132

4276.2577.2036474755

4378.277.5357649836

4480.278.4238433224

4579.478.7492288816

4686.8581.4494859211

4790.384.3996572807

4890.4586.4164381871

4990.987.9109587914

5093.489.7406391943

5192.790.7270927962

5294.8592.1013951975

5397.193.7675967983

5494.9594.1617311989

5594.894.3744874659

5695.194.6163249773

5795.6594.9608833182

5899.1596.3572555455

5992.7595.1548370303

6093.9594.7532246869

6196.195.2021497912

6295.0595.1514331942

6396.4595.5842887961

6495.0595.4061925307

6593.494.7374616872

6694.6594.7083077914

6795.1594.8555385276

6893.3594.3536923518

6992.793.8024615678

7090.5592.7183077119

7187.791.0455384746

7289.6590.5803589831

7384.888.6535726554

7487.4588.2523817702

7589.1588.5515878468

7692.3589.8177252312

7795.591.7118168208

7895.5592.9912112139

7996.294.0608074759

8093.593.8738716506

8192.5593.4325811004

8289.5592.1383874003

8391.791.9922582668

8492.592.1615055112

8591.391.8743370075

8689.290.9828913383

8789.0590.3385942256

8889.389.9923961504

8989.989.9615974336

9086.988.9410649557

9188.288.6940433038

9290.789.3626955359

9392.1590.2917970239

9492.1590.9111980159

9588.9590.257465344

9687.289.2383102293

9788.2588.9088734862

9890.589.4392489908

9991.390.0594993272

10090.6590.2563328848

10192.791.0708885899

10296.6592.9305923932

10395.6593.8370615955

10493.9593.8747077303

10591.7593.1664718202

10680.9589.0943145468

10782.386.8295430312

10879.0584.2363620208

10981.583.3242413472

1108483.5494942315

11183.7583.6163294876

11283.2583.4942196584

11382.983.296146439

11480.682.3974309593

11579.581.4316206395

11680.881.2210804264

11785.1582.5307202842

11883.182.7204801895

11980.9582.1303201263

12081.8582.0368800842

12181.681.8912533895

12281.5581.7775022597

12380.3581.3016681731

12481.2581.2844454487

12578.480.3229636325

1267678.881975755

12779.0578.9379838367

12879.479.0919892244

12980.779.6279928163

13079.3579.5353285442

13179.179.3902190295

13283.180.6268126863

13386.0582.4345417909

13480.481.7563611939

13579.180.8709074626

13680.680.7806049751

13780.3580.6370699834

13877.4579.5747133223

13976.1578.4331422148

14071.676.1554281432

14171.3574.5536187621

14271.473.5024125081

14366.571.1682750054

14466.0569.4621833369

14568.4569.1247888913

14665.7567.9998592609

14766.667.5332395072

14866.7567.2721596715

14968.367.6147731143

15072.2569.1598487429

15171.469.9065658286

15269.869.8710438857

15367.9569.2306959238

15469.169.1871306159

15567.9568.7747537439

15669.0568.8665024959

15773.470.3776683306

15874.371.6851122204

15972.271.8567414803

16071.271.6378276535

16170.2571.1752184357

16267.469.9168122905

16370.169.9778748603

16467.4569.1352499069

16568.5568.9401666046

16671.4569.7767777364

16770.0569.8678518243

16872.3570.6952345495

16975.872.396823033

17078.474.397882022

17180.8576.5485880147

17284.9579.3490586764

17385.381.3327057843

17484.782.4551371895

17588.384.403424793

17684.4584.418949862

17786.9585.2626332413

17892.0587.5250888276

17990.4588.5000592184

18090.789.2333728122

18188.7589.0722485415

18291.6589.9314990277

18388.389.3876660184

18489.189.2917773456

18588.1588.9111848971

18688.8588.8907899314

18792.7590.1771932876

18894.6591.6681288584

18990.191.1454192389

19088.0590.113612826

19189.7589.9924085506

19292.590.8282723671

19396.9592.8688482447

194100.695.4458988298

195105.198.6639325532

196109.9102.4092883688

197109.1104.6395255792

198110.2106.4930170528

199111.55108.1786780352

200110.05108.8024520235

201110.7109.4349680156

202109.25109.3733120104

203113.6110.782208007

204117.2112.9214720046

205120.1115.3143146698

206123.5118.0428764465

207123.85119.9785842977

208124.05121.3357228651

209121.1121.2571485767

210124.7122.4047657178

211123.3122.7031771452

212124.85123.4187847635

213123.6123.4791898423

214123.35123.4361265615

215121.95122.940751041

216124.6123.4938340274

217127.75124.9125560182

218129.7126.5083706788

219128.3127.1055804525

220126.95127.0537203017

Plot

DayPriceEMA

682.284.5950617284

781.483.5300411523

881.1582.7366941015

980.0581.841129401

1082.0581.910752934

1182.3582.0571686227

128181.7047790818

1381.381.5698527212

148281.7132351475

1583.582.3088234316

1683.782.7725489544

1780.982.1483659696

1879.4581.2489106464

1978.8580.4492737643

2077.479.4328491762

217577.9552327841

2275.277.0368218561

2373.875.9578812374

2474.175.3385874916

2574.5575.0757249944

2673.974.6838166629

2773.374.222544442

2874.2574.2316962946

2975.174.5211308631

3073.274.0807539087

3173.7573.9705026058

3274.274.0470017372

3376.2574.7813344915

3477.175.5542229943

Plot

Price

EMA

Sheet3

Relative Strength IndexRate of Change IndicatorsMoving Average Convergence and Divergence

It indicates the scrip momentum, shows the share price movement across a reference across a reference point from one extreme to another. The momentum indicates; Overbought and oversold conditionsSignals possible trend reversalRise or decline in the momentum

Developed by Wells Wilder. An oscillator used to identify the inherent technical strength and weakness of a particular scrip or market.If the RSI crosses seventy there may be downturn and it is time to sell. If RSI falls below thirty time to buy the scrip.

It is normally prepared for 14 days basisThe RSI of the 14 days interval are plotted in graphIf RSI is above the Overbought /Over sold zone time to take actionThis kind of situation occurs due to large buying or large sellingThe term oversold speaks that the market has declined to a new low The overbought speaks that the market has touched the new highs

Data sheet

Chart1

37.8343949045

38.9254941713

45.4545454545

43.1034482759

41.1280846063

41.1280846063

39.3258426966

34.3473994112

30.7237813885

24.5883644347

24.5883644347

23.6501079914

26.6628766345

27.1969211033

22.8416043508

27.9365079365

29.6296296296

29.9610894942

27.6752767528

34.2789598109

39.378238342

46.4362850972

50.4657070279

51.5501081471

51.0204081633

47.0588235294

42.3248882265

49.5436766623

41.8886198547

45.6896551724

48.8843813387

53.1135531136

62.4082232012

65.6836461126

58.2166543847

57.5280898876

54.8903878583

61.1210282042

63.2715008432

62.1273166801

59.1857000993

72.3300970874

70.7692307692

69.2446043165

69.465648855

41.975308642

38.1578947368

41.5745856354

46.6155810983

44.6724023825

43.0759412891

43.1832593532

40.9360580092

38.9028325565

35.538814281

41.117245859

43.5865504359

36.684303351

46.0490463215

41.4285714286

43.0555555556

41.8009478673

46.0930640913

46.9437652812

42.3381189569

41.3062928721

43.2739059968

44.7111359196

40.9509202454

40.3016120645

38.648488441

41.3902509374

47.4066732739

49.822569198

46.5204236006

39.3653516295

28.6103542234

33.8662179218

40.3641881639

42.7222659323

37.443111295

36.9538587178

34.1584158416

34.9633251834

36.5474339036

35.8839050132

34.5177664975

38.2775119617

44.2363112392

50.8278145695

51.4087083791

48.5294117647

35.6171284635

38.5429189709

38.487394958

37.8059836809

40.1657217619

43.5009487666

49.1631276543

49.5343569091

50.78447564

47.2440944882

43.2364096081

47.9558565337

48.136958711

61.5384615385

60.626029654

67.2760511883

69.3486590038

68.1581685744

62.7515208236

57.6774193548

53.8770590599

58.2322357019

53.6180727144

53.6180727144

45.8149779736

49.7607655502

59.4660194175

63.6824936571

51.5702964485

49.3955580545

46.600331675

52.1973348455

52.108689499

54.1311379006

47.9382972412

55.2060396351

51.7941773866

47.2513897468

47.0190534726

41.874578557

35.1893095768

36.7346938776

31.4036478985

31.6205533597

37.9812064262

41.0415984278

40.5632890903

45.3164556962

48.2479784367

53.553967657

61.0287707062

63.7305699482

61.1419508327

63.248564397

65.4205607477

69.425119004

67.4181818182

64.5148514851

61.0340951667

58.7554269175

61.4530776993

55.7182067704

54.5777777778

58.0803937654

55.5265448216

57.8034682081

60.4026845638

55.4118018302

56.5357372827

62.2411693057

54.4371649792

56.5217391304

60.0818833163

61.2091408736

56.9701280228

57.5471698113

56.9892473118

53.9203247907

51.906779661

51.9262981575

52.4834437086

51.3387054848

49.0889311939

47.6378991818

47.9814862433

41.8845159437

42.0191765369

48.1593545134

48.1226864093

49.820971867

53.6667689475

60.1431980907

54.4194641207

54.9604382228

56.6792861006

55.4752640356

65.6578947368

70.0956937799

71.3958810069

71.4937286203

70.7943925234

68.3544303797

64.4886363636

54.2835481425

52.2267206478

55.3971486762

55.6380823768

56.4964004114

63.0730319317

63.2329635499

61.1390284757

60.5442176871

59.2267135325

57.1327433628

RSI

Relative Strength Index

Raw Data RSI

DaysClosing PriceGainsLossRSI

190.9-

290.750.15

385.75.05

483.62.1

582.80.8

682.20.6

781.40.8

881.150.25

980.051.1

1082.052

1182.350.3

12811.35

1381.30.3

14820.7

1583.51.537.8343949045

1683.70.238.9254941713

1780.92.845.4545454545

1879.451.4543.1034482759

1978.850.641.1280846063

2077.41.4541.1280846063

21752.439.3258426966

2275.20.234.3473994112

2373.81.430.7237813885

2474.10.324.5883644347

2574.550.4524.5883644347

2673.90.6523.6501079914

2773.30.626.6628766345

2874.250.9527.1969211033

2975.10.8522.8416043508

3073.21.927.9365079365

3173.750.5529.6296296296

3274.20.4529.9610894942

3376.252.0527.6752767528

3477.10.8534.2789598109

35770.139.378238342

3678146.4362850972

3777.050.9550.4657070279

3877.350.351.5501081471

3977.450.151.0204081633

4076.11.3547.0588235294

4179.453.3542.3248882265

4276.253.249.5436766623

4378.21.9541.8886198547

4480.2245.6896551724

4579.40.848.8843813387

4686.857.4553.1135531136

4790.33.4562.4082232012

4890.450.1565.6836461126

4990.90.4558.2166543847

5093.42.557.5280898876

5192.70.754.8903878583

5294.852.1561.1210282042

5397.12.2563.2715008432

5494.952.1562.1273166801

5594.80.1559.1857000993

5695.10.372.3300970874

5795.650.5570.7692307692

5899.153.569.2446043165

5992.756.469.465648855

6093.951.241.975308642

6196.12.1538.1578947368

6295.051.0541.5745856354

6396.451.446.6155810983

6495.051.444.6724023825

6593.41.6543.0759412891

6694.651.2543.1832593532

6795.150.540.9360580092

6893.351.838.9028325565

6992.70.6535.538814281

7090.552.1541.117245859

7187.72.8543.5865504359

7289.651.9536.684303351

7384.84.8546.0490463215

7487.452.6541.4285714286

7589.151.743.0555555556

7692.353.241.8009478673

7795.53.1546.0930640913

7895.550.0546.9437652812

7996.20.6542.3381189569

8093.52.741.3062928721

8192.550.9543.2739059968

8289.55344.7111359196

8391.72.1540.9509202454

8492.50.840.3016120645

8591.31.238.648488441

8689.22.141.3902509374

8789.050.1547.4066732739

8889.30.2549.822569198

8989.90.646.5204236006

9086.9339.3653516295

9188.21.328.6103542234

9290.72.533.8662179218

9392.151.4540.3641881639

9492.15042.7222659323

9588.953.237.443111295

9687.21.7536.9538587178

9788.251.0534.1584158416

9890.52.2534.9633251834

9991.30.836.5474339036

10090.650.6535.8839050132

10192.72.0534.5177664975

10296.653.9538.2775119617

10395.65144.2363112392

10493.951.750.8278145695

10591.752.251.4087083791

10680.9510.848.5294117647

10782.31.3535.6171284635

10879.053.2538.5429189709

10981.52.4538.487394958

110842.537.8059836809

11183.750.2540.1657217619

11283.250.543.5009487666

11382.90.3549.1631276543

11480.62.349.5343569091

11579.51.150.78447564

11680.81.347.2440944882

11785.154.3543.2364096081

11883.12.0547.9558565337

11980.952.1548.136958711

12081.850.961.5384615385

12181.60.2560.626029654

12281.550.0567.2760511883

12380.351.269.3486590038

12481.250.968.1581685744

12578.42.8562.7515208236

126762.457.6774193548

12779.053.0553.8770590599

12879.40.3558.2322357019

12980.71.353.6180727144

13079.351.3553.6180727144

13179.10.2545.8149779736

13283.1449.7607655502

13386.052.9559.4660194175

13480.45.6563.6824936571

13579.11.351.5702964485

13680.61.549.3955580545

13780.350.2546.600331675

13877.452.952.1973348455

13976.151.352.108689499

14071.64.5554.1311379006

14171.350.2547.9382972412

14271.40.0555.2060396351

14366.54.951.7941773866

14466.050.4547.2513897468

14568.452.447.0190534726

14665.752.741.874578557

14766.60.8535.1893095768

14866.750.1536.7346938776

14968.31.5531.4036478985

15072.253.9531.6205533597

15171.40.8537.9812064262

15269.81.641.0415984278

15367.951.8540.5632890903

15469.1-1.1545.3164556962

15567.951.1548.2479784367

15669.051.153.553967657

15773.44.3561.0287707062

15874.30.963.7305699482

15972.22.161.1419508327

16071.2163.248564397

16170.250.9565.4205607477

16267.42.8569.425119004

16370.12.767.4181818182

16467.452.6564.5148514851

16568.551.161.0340951667

16671.452.958.7554269175

16770.051.461.4530776993

16872.352.355.7182067704

16975.83.4554.5777777778

17078.42.658.0803937654

17180.852.4555.5265448216

17284.954.157.8034682081

17385.30.3560.4026845638

17484.70.655.4118018302

17588.33.656.5357372827

17684.453.8562.2411693057

17786.952.554.4371649792

17892.055.156.5217391304

17990.451.660.0818833163

18090.70.2561.2091408736

18188.751.9556.9701280228

18291.652.957.5471698113

18388.33.3556.9892473118

18489.10.853.9203247907

18588.150.9551.906779661

18688.850.751.9262981575

18792.753.952.4834437086

18894.651.951.3387054848

18990.14.5549.0889311939

19088.052.0547.6378991818

19189.751.747.9814862433

19292.52.7541.8845159437

19396.954.4542.0191765369

194100.63.6548.1593545134

195105.14.548.1226864093

196109.94.849.820971867

197109.10.853.6667689475

198110.21.160.1431980907

199111.551.3554.4194641207

200110.051.554.9604382228

201110.70.6556.6792861006

202109.251.4555.4752640356

203113.64.3565.6578947368

204117.23.670.0956937799

205120.12.971.3958810069

206123.53.471.4937286203

207123.850.3570.7943925234

208124.050.268.3544303797

209121.12.9564.4886363636

210124.73.654.2835481425

211123.31.452.2267206478

212124.851.5555.3971486762

213123.61.2555.6380823768

214123.350.2556.4964004114

215121.951.463.0730319317

216124.62.6563.2329635499

217127.753.1561.1390284757

218129.71.9560.5442176871

219128.31.459.2267135325

220126.951.3557.1327433628

Plot

RSI

37.8343949045

38.9254941713

45.4545454545

43.1034482759

41.1280846063

41.1280846063

39.3258426966

34.3473994112

30.7237813885

24.5883644347

24.5883644347

23.6501079914

26.6628766345

27.1969211033

22.8416043508

27.9365079365

29.6296296296

29.9610894942

27.6752767528

34.2789598109

39.378238342

46.4362850972

50.4657070279

51.5501081471

51.0204081633

47.0588235294

42.3248882265

49.5436766623

41.8886198547

45.6896551724

48.8843813387

53.1135531136

62.4082232012

65.6836461126

58.2166543847

57.5280898876

54.8903878583

61.1210282042

63.2715008432

62.1273166801

59.1857000993

72.3300970874

70.7692307692

69.2446043165

69.465648855

41.975308642

38.1578947368

41.5745856354

46.6155810983

44.6724023825

43.0759412891

43.1832593532

40.9360580092

38.9028325565

35.538814281

41.117245859

43.5865504359

36.684303351

46.0490463215

41.4285714286

43.0555555556

41.8009478673

46.0930640913

46.9437652812

42.3381189569

41.3062928721

43.2739059968

44.7111359196

40.9509202454

40.3016120645

38.648488441

41.3902509374

47.4066732739

49.822569198

46.5204236006

39.3653516295

28.6103542234

33.8662179218

40.3641881639

42.7222659323

37.443111295

36.9538587178

34.1584158416

34.9633251834

36.5474339036

35.8839050132

34.5177664975

38.2775119617

44.2363112392

50.8278145695

51.4087083791

48.5294117647

35.6171284635

38.5429189709

38.487394958

37.8059836809

40.1657217619

43.5009487666

49.1631276543

49.5343569091

50.78447564

47.2440944882

43.2364096081

47.9558565337

48.136958711

61.5384615385

60.626029654

67.2760511883

69.3486590038

68.1581685744

62.7515208236

57.6774193548

53.8770590599

58.2322357019

53.6180727144

53.6180727144

45.8149779736

49.7607655502

59.4660194175

63.6824936571

51.5702964485

49.3955580545

46.600331675

52.1973348455

52.108689499

54.1311379006

47.9382972412

55.2060396351

51.7941773866

47.2513897468

47.0190534726

41.874578557

35.1893095768

36.7346938776

31.4036478985

31.6205533597

37.9812064262

41.0415984278

40.5632890903

45.3164556962

48.2479784367

53.553967657

61.0287707062

63.7305699482

61.1419508327

63.248564397

65.4205607477

69.425119004

67.4181818182

64.5148514851

61.0340951667

58.7554269175

61.4530776993

55.7182067704

54.5777777778

58.0803937654

55.5265448216

57.8034682081

60.4026845638

55.4118018302

56.5357372827

62.2411693057

54.4371649792

56.5217391304

60.0818833163

61.2091408736

56.9701280228

57.5471698113

56.9892473118

53.9203247907

51.906779661

51.9262981575

52.4834437086

51.3387054848

49.0889311939

47.6378991818

47.9814862433

41.8845159437

42.0191765369

48.1593545134

48.1226864093

49.820971867

53.6667689475

60.1431980907

54.4194641207

54.9604382228

56.6792861006

55.4752640356

65.6578947368

70.0956937799

71.3958810069

71.4937286203

70.7943925234

68.3544303797

64.4886363636

54.2835481425

52.2267206478

55.3971486762

55.6380823768

56.4964004114

63.0730319317

63.2329635499

61.1390284757

60.5442176871

59.2267135325

57.1327433628

Plot

RSI

Relative Strength Index

Sheet3

Rate of change between the current price and the price n number of days in the past.It helps in finding out the overbought or oversold levelROC graph is prepared to find out the overbought and oversold limit (oscillators)

OversoldOverboughtData sheet

Chart1

-0.1072607261

-0.1179063361

-0.0425904317

-0.0149521531

-0.0217391304

-0.0109489051

0.0073710074

0.0289587184

0.0455965022

-0.014015844

-0.0352155434

-0.0265432099

-0.0479704797

-0.0853658537

-0.0994011976

-0.1182795699

-0.0840543881

-0.0616740088

-0.0627774255

-0.0529715762

-0.01

-0.0013297872

-0.0081300813

-0.0047233468

-0.0046948357

0.0317997294

0.0518417462

0.037037037

0.0386151798

0.0525956284

0.0488135593

0.0438005391

-0.0019672131

0.0304798962

-0.0097402597

0.0025641026

0.0408825438

0.0265029089

0.1213686249

0.1865965834

0.1384518565

0.1921311475

0.1943734015

0.1558603491

0.1945843829

0.118019574

0.0514950166

0.048092869

0.0462046205

0.0240899358

0.069579288

RoC

Rate of Change

Raw Data RSI

DaysClosing PriceGainsLossRSI

190.9-

290.750.15

385.75.05

483.62.1

582.80.8

682.20.6

781.40.8

881.150.25

980.051.1

1082.052

1182.350.3

12811.35

1381.30.3

14820.7

1583.51.537.8343949045

1683.70.238.9254941713

1780.92.845.4545454545

1879.451.4543.1034482759

1978.850.641.1280846063

2077.41.4541.1280846063

21752.439.3258426966

2275.20.234.3473994112

2373.81.430.7237813885

2474.10.324.5883644347

2574.550.4524.5883644347

2673.90.6523.6501079914

2773.30.626.6628766345

2874.250.9527.1969211033

2975.10.8522.8416043508

3073.21.927.9365079365

3173.750.5529.6296296296

3274.20.4529.9610894942

3376.252.0527.6752767528

3477.10.8534.2789598109

35770.139.378238342

3678146.4362850972

3777.050.9550.4657070279

3877.350.351.5501081471

3977.450.151.0204081633

4076.11.3547.0588235294

4179.453.3542.3248882265

4276.253.249.5436766623

4378.21.9541.8886198547

4480.2245.6896551724

4579.40.848.8843813387

4686.857.4553.1135531136

4790.33.4562.4082232012

4890.450.1565.6836461126

4990.90.4558.2166543847

5093.42.557.5280898876

5192.70.754.8903878583

5294.852.1561.1210282042

5397.12.2563.2715008432

5494.952.1562.1273166801

5594.80.1559.1857000993

5695.10.372.3300970874

5795.650.5570.7692307692

5899.153.569.2446043165

5992.756.469.465648855

6093.951.241.975308642

6196.12.1538.1578947368

6295.051.0541.5745856354

6396.451.446.6155810983

6495.051.444.6724023825

6593.41.6543.0759412891

6694.651.2543.1832593532

6795.150.540.9360580092

6893.351.838.9028325565

6992.70.6535.538814281

7090.552.1541.117245859

7187.72.8543.5865504359

7289.651.9536.684303351

7384.84.8546.0490463215

7487.452.6541.4285714286

7589.151.743.0555555556

7692.353.241.8009478673

7795.53.1546.0930640913

7895.550.0546.9437652812

7996.20.6542.3381189569

8093.52.741.3062928721

8192.550.9543.2739059968

8289.55344.7111359196

8391.72.1540.9509202454

8492.50.840.3016120645

8591.31.238.648488441

8689.22.141.3902509374

8789.050.1547.4066732739

8889.30.2549.822569198

8989.90.646.5204236006

9086.9339.3653516295

9188.21.328.6103542234

9290.72.533.8662179218

9392.151.4540.3641881639

9492.15042.7222659323

9588.953.237.443111295

9687.21.7536.9538587178

9788.251.0534.1584158416

9890.52.2534.9633251834

9991.30.836.5474339036

10090.650.6535.8839050132

10192.72.0534.5177664975

10296.653.9538.2775119617

10395.65144.2363112392

10493.951.750.8278145695

10591.752.251.4087083791

10680.9510.848.5294117647

10782.31.3535.6171284635

10879.053.2538.5429189709

10981.52.4538.487394958

110842.537.8059836809

11183.750.2540.1657217619

11283.250.543.5009487666

11382.90.3549.1631276543

11480.62.349.5343569091

11579.51.150.78447564

11680.81.347.2440944882

11785.154.3543.2364096081

11883.12.0547.9558565337

11980.952.1548.136958711

12081.850.961.5384615385

12181.60.2560.626029654

12281.550.0567.2760511883

12380.351.269.3486590038

12481.250.968.1581685744

12578.42.8562.7515208236

126762.457.6774193548

12779.053.0553.8770590599

12879.40.3558.2322357019

12980.71.353.6180727144

13079.351.3553.6180727144

13179.10.2545.8149779736

13283.1449.7607655502

13386.052.9559.4660194175

13480.45.6563.6824936571

13579.11.351.5702964485

13680.61.549.3955580545

13780.350.2546.600331675

13877.452.952.1973348455

13976.151.352.108689499

14071.64.5554.1311379006

14171.350.2547.9382972412

14271.40.0555.2060396351

14366.54.951.7941773866

14466.050.4547.2513897468

14568.452.447.0190534726

14665.752.741.874578557

14766.60.8535.1893095768

14866.750.1536.7346938776

14968.31.5531.4036478985

15072.253.9531.6205533597

15171.40.8537.9812064262

15269.81.641.0415984278

15367.951.8540.5632890903

15469.1-1.1545.3164556962

15567.951.1548.2479784367

15669.051.153.553967657

15773.44.3561.0287707062

15874.30.963.7305699482

15972.22.161.1419508327

16071.2163.248564397

16170.250.9565.4205607477

16267.42.8569.425119004

16370.12.767.4181818182

16467.452.6564.5148514851

16568.551.161.0340951667

16671.452.958.7554269175

16770.051.461.4530776993

16872.352.355.7182067704

16975.83.4554.5777777778

17078.42.658.0803937654

17180.852.4555.5265448216

17284.954.157.8034682081

17385.30.3560.4026845638

17484.70.655.4118018302

17588.33.656.5357372827

17684.453.8562.2411693057

17786.952.554.4371649792

17892.055.156.5217391304

17990.451.660.0818833163

18090.70.2561.2091408736

18188.751.9556.9701280228

18291.652.957.5471698113

18388.33.3556.9892473118

18489.10.853.9203247907

18588.150.9551.906779661

18688.850.751.9262981575

18792.753.952.4834437086

18894.651.951.3387054848

18990.14.5549.0889311939

19088.052.0547.6378991818

19189.751.747.9814862433

19292.52.7541.8845159437

19396.954.4542.0191765369

194100.63.6548.1593545134

195105.14.548.1226864093

196109.94.849.820971867

197109.10.853.6667689475

198110.21.160.1431980907

199111.551.3554.4194641207

200110.051.554.9604382228

201110.70.6556.6792861006

202109.251.4555.4752640356

203113.64.3565.6578947368

204117.23.670.0956937799

205120.12.971.3958810069

206123.53.471.4937286203

207123.850.3570.7943925234

208124.050.268.3544303797

209121.12.9564.4886363636

210124.73.654.2835481425

211123.31.452.2267206478

212124.851.5555.3971486762

213123.61.2555.6380823768

214123.350.2556.4964004114

215121.951.463.0730319317

216124.62.6563.2329635499

217127.753.1561.1390284757

218129.71.9560.5442176871

219128.31.459.2267135325

220126.951.3557.1327433628

Plot-RSI

DaysRSI

137.8343949045

238.9254941713

345.4545454545

443.1034482759

541.1280846063

641.1280846063

739.3258426966

834.3473994112

930.7237813885

1024.5883644347

1124.5883644347

1223.6501079914

1326.6628766345

1427.1969211033

1522.8416043508

1627.9365079365

1729.6296296296

1829.9610894942

1927.6752767528

2034.2789598109

2139.378238342

2246.4362850972

2350.4657070279

2451.5501081471

2551.0204081633

2647.0588235294

2742.3248882265

2849.5436766623

2941.8886198547

3045.6896551724

3148.8843813387

3253.1135531136

3362.4082232012

3465.6836461126

3558.2166543847

3657.5280898876

3754.8903878583

3861.1210282042

3963.2715008432

4062.1273166801

4159.1857000993

4272.3300970874

4370.7692307692

4469.2446043165

4569.465648855

4641.975308642

4738.1578947368

4841.5745856354

4946.6155810983

5044.6724023825

5143.0759412891

5243.1832593532

5340.9360580092

5438.9028325565

5535.538814281

5641.117245859

5743.5865504359

5836.684303351

5946.0490463215

6041.4285714286

6143.0555555556

6241.8009478673

6346.0930640913

6446.9437652812

6542.3381189569

6641.3062928721

6743.2739059968

6844.7111359196

6940.9509202454

7040.3016120645

7138.648488441

7241.3902509374

7347.4066732739

7449.822569198

7546.5204236006

7639.3653516295

7728.6103542234

7833.8662179218

7940.3641881639

8042.7222659323

8137.443111295

8236.9538587178

8334.1584158416

8434.9633251834

8536.5474339036

8635.8839050132

8734.5177664975

8838.2775119617

8944.2363112392

9050.8278145695

9151.4087083791

9248.5294117647

9335.6171284635

9438.5429189709

9538.487394958

9637.8059836809

9740.1657217619

9843.5009487666

9949.1631276543

10049.5343569091

10150.78447564

10247.2440944882

10343.2364096081

10447.9558565337

10548.136958711

10661.5384615385

10760.626029654

10867.2760511883

10969.3486590038

11068.1581685744

11162.7515208236

11257.6774193548

11353.8770590599

11458.2322357019

11553.6180727144

11653.6180727144

11745.8149779736

11849.7607655502

11959.4660194175

12063.6824936571

12151.5702964485

12249.3955580545

12346.600331675

12452.1973348455

12552.108689499

12654.1311379006

12747.9382972412

12855.2060396351

12951.7941773866

13047.2513897468

13147.0190534726

13241.874578557

13335.1893095768

13436.7346938776

13531.4036478985

13631.6205533597

13737.9812064262

13841.0415984278

13940.5632890903

14045.3164556962

14148.2479784367

14253.553967657

14361.0287707062

14463.7305699482

14561.1419508327

14663.248564397

14765.4205607477

14869.425119004

14967.4181818182

15064.5148514851

15161.0340951667

15258.7554269175

15361.4530776993

15455.7182067704

15554.5777777778

15658.0803937654

15755.5265448216

15857.8034682081

15960.4026845638

16055.4118018302

16156.5357372827

16262.2411693057

16354.4371649792

16456.5217391304

16560.0818833163

16661.2091408736

16756.9701280228

16857.5471698113

16956.9892473118

17053.9203247907

17151.906779661

17251.9262981575

17352.4834437086

17451.3387054848

17549.0889311939

17647.6378991818

17747.9814862433

17841.8845159437

17942.0191765369

18048.1593545134

18148.1226864093

18249.820971867

18353.6667689475

18460.1431980907

18554.4194641207

18654.9604382228

18756.6792861006

18855.4752640356

18965.6578947368

19070.0956937799

19171.3958810069

19271.4937286203

19370.7943925234

19468.3544303797

19564.4886363636

19654.2835481425

19752.2267206478

19855.3971486762

19955.6380823768

20056.4964004114

20163.0730319317

20263.2329635499

20361.1390284757

20460.5442176871

20559.2267135325

20657.1327433628

Plot-RSI

RSI

Relative Strength Index

RoC

DaysPrices7 day pricePrice ratioRoC = Ratio -1

190.9

290.75`RoC = (Current Price/Price 'n' period ago) - 1

385.7

483.6

582.8

682.2

781.4

881.1590.90.8927392739-0.1072607261

980.0590.750.8820936639-0.1179063361

1082.0585.70.9574095683-0.0425904317

1182.3583.60.9850478469-0.0149521531

128182.80.9782608696-0.0217391304

1381.382.20.9890510949-0.0109489051

148281.41.00737100740.0073710074

1583.581.151.02895871840.0289587184

1683.780.051.04559650220.0455965022

1780.982.050.985984156-0.014015844

1879.4582.350.9647844566-0.0352155434

1978.85810.9734567901-0.0265432099

2077.481.30.9520295203-0.0479704797

2175820.9146341463-0.0853658537

2275.283.50.9005988024-0.0994011976

2373.883.70.8817204301-0.1182795699

2474.180.90.9159456119-0.0840543881

2574.5579.450.9383259912-0.0616740088

2673.978.850.9372225745-0.0627774255

2773.377.40.9470284238-0.0529715762

2874.25750.99-0.01

2975.175.20.9986702128-0.0013297872

3073.273.80.9918699187-0.0081300813

3173.7574.10.9952766532-0.0047233468

3274.274.550.9953051643-0.0046948357

3376.2573.91.03179972940.0317997294

3477.173.31.05184174620.0518417462

357774.251.0370370370.037037037

367875.11.03861517980.0386151798

3777.0573.21.05259562840.0525956284

3877.3573.751.04881355930.0488135593

3977.4574.21.04380053910.0438005391

4076.176.250.9980327869-0.0019672131

4179.4577.11.03047989620.0304798962

4276.25770.9902597403-0.0097402597

4378.2781.00256410260.0025641026

4480.277.051.04088254380.0408825438

4579.477.351.02650290890.0265029089

4686.8577.451.12136862490.1213686249

4790.376.11.18659658340.1865965834

4890.4579.451.13845185650.1384518565

4990.976.251.19213114750.1921311475

5093.478.21.19437340150.1943734015

5192.780.21.15586034910.1558603491

5294.8579.41.19458438290.1945843829

5397.186.851.1180195740.118019574

5494.9590.31.05149501660.0514950166

5594.890.451.0480928690.048092869

5695.190.91.04620462050.0462046205

5795.6593.41.02408993580.0240899358

5899.1592.71.0695792880.069579288

5992.7594.850.9778597786-0.0221402214

6093.9597.10.9675592173-0.0324407827

6196.194.951.01211163770.0121116377

6295.0594.81.00263713080.0026371308

6396.4595.11.01419558360.0141955836

6495.0595.650.9937271302-0.0062728698

6593.499.150.94200706-0.05799294

6694.6592.751.02048517520.0204851752

6795.1593.951.01277275150.0127727515

6893.3596.10.971383975-0.028616025

6992.795.050.9752761704-0.0247238296

7090.5596.450.9388284085-0.0611715915

7187.795.050.9226722777-0.0773277223

7289.6593.40.9598501071-0.0401498929

7384.894.650.8959323825-0.1040676175

7487.4595.150.9190751445-0.0809248555

7589.1593.350.9550080343-0.0449919657

7692.3592.70.9962243797-0.0037756203

7795.590.551.05466593040.0546659304

7895.5587.71.08950969210.0895096921

7996.289.651.07306190740.0730619074

8093.584.81.10259433960.1025943396

8192.5587.451.05831903950.0583190395

8289.5589.151.004486820.00448682

8391.792.350.9929615593-0.0070384407

8492.595.50.9685863874-0.0314136126

8591.395.550.9555206698-0.0444793302

8689.296.20.9272349272-0.0727650728

8789.0593.50.9524064171-0.0475935829

8889.392.550.9648838466-0.0351161534

8989.989.551.0039084310.003908431

9086.991.70.947655398-0.052344602

(Current Price/Price 'n' period ago)

RoC-Plot

DayPricePrice 7 day beforeRatioRoC

881.1590.90.8927392739-0.1072607261

980.0590.750.8820936639-0.1179063361

1082.0585.70.9574095683-0.0425904317

1182.3583.60.9850478469-0.0149521531

128182.80.9782608696-0.0217391304

1381.382.20.9890510949-0.0109489051

148281.41.00737100740.0073710074

1583.581.151.02895871840.0289587184

1683.780.051.04559650220.0455965022

1780.982.050.985984156-0.014015844

1879.4582.350.9647844566-0.0352155434

1978.85810.9734567901-0.0265432099

2077.481.30.9520295203-0.0479704797

2175820.9146341463-0.0853658537

2275.283.50.9005988024-0.0994011976

2373.883.70.8817204301-0.1182795699

2474.180.90.9159456119-0.0840543881

2574.5579.450.9383259912-0.0616740088

2673.978.850.9372225745-0.0627774255

2773.377.40.9470284238-0.0529715762

2874.25750.99-0.01

2975.175.20.9986702128-0.0013297872

3073.273.80.9918699187-0.0081300813

3173.7574.10.9952766532-0.0047233468

3274.274.550.9953051643-0.0046948357

3376.2573.91.03179972940.0317997294

3477.173.31.05184174620.0518417462

357774.251.0370370370.037037037

367875.11.03861517980.0386151798

3777.0573.21.05259562840.0525956284

3877.3573.751.04881355930.0488135593

3977.4574.21.04380053910.0438005391

4076.176.250.9980327869-0.0019672131

4179.4577.11.03047989620.0304798962

4276.25770.9902597403-0.0097402597

4378.2781.00256410260.0025641026

4480.277.051.04088254380.0408825438

4579.477.351.02650290890.0265029089

4686.8577.451.12136862490.1213686249

4790.376.11.18659658340.1865965834

4890.4579.451.13845185650.1384518565

4990.976.251.19213114750.1921311475

5093.478.21.19437340150.1943734015

5192.780.21.15586034910.1558603491

5294.8579.41.19458438290.1945843829

5397.186.851.1180195740.118019574

5494.9590.31.05149501660.0514950166

5594.890.451.0480928690.048092869

5695.190.91.04620462050.0462046205

5795.6593.41.02408993580.0240899358

5899.1592.71.0695792880.069579288

5992.7594.850.9778597786-0.0221402214

6093.9597.10.9675592173-0.0324407827

6196.194.951.01211163770.0121116377

6295.0594.81.00263713080.0026371308

6396.4595.11.01419558360.0141955836

6495.0595.650.9937271302-0.0062728698

6593.499.150.94200706-0.05799294

6694.6592.751.02048517520.0204851752

6795.1593.951.01277275150.0127727515

6893.3596.10.971383975-0.028616025

6992.795.050.9752761704-0.0247238296

7090.5596.450.9388284085-0.0611715915

7187.795.050.9226722777-0.0773277223

7289.6593.40.9598501071-0.0401498929

7384.894.650.8959323825-0.1040676175

7487.4595.150.9190751445-0.0809248555

7589.1593.350.9550080343-0.0449919657

7692.3592.70.9962243797-0.0037756203

7795.590.551.05466593040.0546659304

7895.5587.71.08950969210.0895096921

7996.289.651.07306190740.0730619074

8093.584.81.10259433960.1025943396

8192.5587.451.05831903950.0583190395

8289.5589.151.004486820.00448682

8391.792.350.9929615593-0.0070384407

8492.595.50.9685863874-0.0314136126

8591.395.550.9555206698-0.0444793302

8689.296.20.9272349272-0.0727650728

8789.0593.50.9524064171-0.0475935829

8889.392.550.9648838466-0.0351161534

8989.989.551.0039084310.003908431

9086.991.70.947655398-0.052344602

RoC-Plot

RoC

Rate of Change

Easiest tools in technical analysis. Spot the current trend for buying and sellingIndicates the probable future actionShows the past historic movementIndicates the important areas of support and resistance level.James Dines said, Charts are like fire or electricity. They are brilliant tools if intelligently controlled and handled but dangerous to a novice.

The PF charts are of one dimensional and there is no indication of time or volume. The price changes in relation to previous prices are shown. The change of price direction can be interpreted.The charts are drawn in the ruled paper. Only whole numbers are consideredThe price rise is shown as a X and O for a price fall.

Sell signalBuy signal

Simplest and most commonly used toolTo draw a bar a dot is entered to indicate the highest level and another dot is for the lowest level in a day. Both the pints are joined to form a bar and a small nub is drawn at the top and bottom of the bars to indicate the opening and closing price.

Each bar is composed of 4 elements:OpenHighLowCloseNote that the candlestick body is empty (white) on up days, and filled (some color) on down days

DateOpen PriceHigh PriceLow PriceClose Price16-Aug-108686.483.283.4517-Aug-1084.58884.585.418-Aug-1085.5586.7583.984.9519-Aug-1085.486.484.6584.9520-Aug-1084.88584.184.2523-Aug-1084.585.6584.3584.624-Aug-108585.283.483.5525-Aug-1083.4584.0582.482.626-Aug-108383.1581.481.627-Aug-1081.481.980.0580.230-Aug-108182.6580.580.8531-Aug-1080.5580.978.5579.8

Chart Patterns: used as a supplement to other information and confirmation.V formation: The V patterns occurs mostly in popular stocks where the market interest changes quickly from hope to fear and vice-versa. Tops and Bottoms: Buy at bottom and sell at topDouble top and bottom: End of a trend

Head and Shoulders: Easy to identify and the signal generated by this is considered reliable. Three rallies resembling the left shoulder, a head and a right shoulder. A neckline is drawn connecting the lows of the tops. When the stock price cuts the neckline from above, it signals the bear market.

This formation is characterized by two small peaks on either side of a larger peak.This is a reversal pattern, meaning that it signifies a change in the trend.

Triangles are continuation formations.Three flavors:Ascending: Demand is high, bullishDescending: Bearish trendSymmetrical: Temporary halt and original trend to come soon

Double bottomGap, should getfilledNov to Mar Trading rangeDescendingtriangles

Fundamental analysis studies the stock based on the companys performance and other macro economic conditions. But TA mainly focuses on the historical prices of the stock and volume of trading.FA Find the long term value of the share but the TA forecasts the prices on a short term basis.FA opines that stock prices depends on the underlying factor, but TA focuses on price and volumeFundamental analysis is time consuming but Technical Analysis is not.

Larry Williams, regarded as one of the great technicians, entered a trading competition and returned over 20,000% in a year trading TECHNICAL picksDaughter, actress Michelle Williams returns 10,000% in same competition using her fathers strategies

Develop a strategy unique to your personality and comfort levelsTweak your strategy until it works the best that it canTest it using virtual (paper) tradingDO NOT STRAY FROM THE SYSTEM!Remember that 1% every day leads to about 290% a year! A little goes a long way!

*************************************************This chart was created on 10 Oct. 2001 as I was preparing these notes. The October 2000 to October 2001 time period has been rich in technical formations. The formations shown are:

A trading range from November 2000 to March 2001. The bottom of a trading range acts as a support level, and the top as resistance. We look for an eventual breakout of the range. In this case, it broke out to the downside signifying a trading opportunity on the short side of the market.

A double bottom formation in mid-March to early April. This formation gives a buy signal when the second bottom is higher (or equal to) the previous bottom. In this case that was in early April, though it takes a few days to be sure of the signal. A second buy signal was generated when the resistance level from the previous trading range was broken.

A Descending Triangle in May and June. This formation, which I find to be very reliable, is expected to break out to the downside. It did.

Another Descending Triangle from mid-July to late August. Again, it would be expected to breakout to the downside. It did, even before the September 11 tragedy.

The last formation shown was the gap down after the 11 Sept terrorist attacks. As noted on the chart, gaps are usually filled (that is, prices eventually should move back to the level before the gap). After a gap is filled (or, on a candlestick chart they say, the window was closed), prices will often reverse for at least a short time. The level at which the gap began becomes a resistance level. In fact, the gap was closed one month later on October 11. On October 12, the index declined by 66.29 points. ***