MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction1

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

Kirkpatrick & Dahlquist Chart 11.4

Disney - Daily

StockCharts.com

Line Chart of Daily Close for Walt Disney Co.2003 - 2007

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction2

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

Kirkpatrick & Dahlquist Chart 11..5

Disney - Weekly

StockCharts.com

Line Chart of Weekly Closes for Walt Disney Co.2003 - 2007

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction3

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

Kirkpatrick & Dahlquist Chart 11.6

Disney - Monthly

StockCharts.com

Line Chart of Monthly Closes for Walt Disney2003 - 2007

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction4

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

Kirkpatrick & Dahlquist Chart 11.7

Krispy Kreme - Daily

StockCharts.com

Daily Bar Chart for Krispy Kreme DoughnutsJune 1 - August 22, 2007

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction5

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

Krispy Kreme - Weekly

StockCharts.com

Kirkpatrick & Dahlquist Chart 11.8

Weekly Bar Chart for Krispy Kreme DoughnutsDecember 1, 2002 - August 22, 2007

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction6

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

Krispy Kreme - Monthly

StockCharts.com

Monthly Bar Chart for Krispy Kreme DoughnutsJune 1, 2001 - August 22, 2007

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction7

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

Kirkpatrick & Dahlquist Chart 11.10

StockCharts.com

Monthly Bar Chart for Cisco Systems, Inc.1995-2005 (arithmetic scale)

Cisco - CSCO

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction8

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

Kirkpatrick & Dahlquist Chart 11.11

StockCharts.com

Monthly Bar Chart for Cisco Systems, Inc.1995-2005 (logarithmic scale)

Cisco - CSCO

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction9

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

Drawing the Candle Lines

Definition of Candle Terms

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction10

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

Kirkpatrick & Dahlquist Chart 11.9

StockCharts.com

Krispy Kreme - Daily

Daily Candlestick Chart for Krispy Kreme DoughnutsJune 1 - August 22, 2007

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction11

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

StockCharts.com

Daily Candle Chart for DIA (Diamonds)September 30, 2007 - January 16, 2008

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction12

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

Alleghany Technologies, Inc.One point ($1) box and 1 box reversal

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction13

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

Alleghany Technologies, Inc.One point ($1) box and 3 box reversal

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction14

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

Alleghany Technologies, Inc.Two point ($2) box and 1 box reversal

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction15

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

Alleghany Technologies, Inc.Two point ($2) box and 3 box reversal

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction16

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved. StockCharts.com

S&P 500 SPDRs (SPY)1 pt/box; 1 box reversal chart - daily

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction17

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

SPY 2 pt. bare - missing

S&P 500 SPDRs (SPY)2 pt/box; 1 box reversal chart - daily

StockCharts.com

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction18

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

SPY 3 pt. bare - missing

S&P 500 SPDRs (SPY)3 pt/box; 1 box reversal chart - daily

StockCharts.com

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction19

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

SPY 3 pt. - 1 ma - missing

S&P 500 SPDRs (SPY) 3 pt/box; 1 box reversal chart - daily

-- 10-column moving average

StockCharts.com

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction20

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

StockCharts.com

S&P 500 SPDRs (SPY)P&F Pattern: Ascending Triple Top Breakout - Daily3 pts/box, 1 box reversal chart

-- 10-column moving average-- 20-column moving average

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction21

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

StockCharts.com

S&P 500 SPDRs (SPY)P&F Pattern: Ascending Triple Top Breakout - Daily3 pts/box, 1 box reversal chart

-- 10-column moving average-- 20-column moving average

-- 50-column moving average

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction22

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved. StockCharts.com

S&P 500 SPDRs (SPY)P&F Pattern: High Pole Warning2 pts/box; 1 box reversal chart - daily

-- 10-column moving average-- 20-column moving average

-- 50-column moving average

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction23

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.StockCharts.com

S&P 500 SPDRs (SPY)1 pt/box; 1 box reversal chart - daily

-- 10-column moving average-- 20-column moving average

-- 50-column moving average

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction24

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

StockCharts.com

street TRACKS Gold Trust Shares (GLD)1 pt/box, 1 box reversal chart

-- 10-column moving average-- 20-column moving average

-- 50-column moving average

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction25

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

StockCharts.com

street TRACKS Gold Trust Shares (GLD)P&F Pattern: High Pole Warning2 pts/box, 1 box reversal chart

-- 10-column moving average-- 20-column moving average

-- 50-column moving average

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction26

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

Citigroup, Inc. (C)P&F Pattern: Quadruple Top BreakoutAverage True Range (120) - 1.24 pts/box, 1 box reversal chart

StockCharts.com

-- 10-column moving average-- 20-column moving average

-- 50-column moving average

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction27

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

StockCharts.com

United States Oil Fund (USO)Average True Range (120) - 1.68 pts/box, 1 box reversal

StockCharts.com

-- 10-column moving average-- 20-column moving average

-- 50-column moving average

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2010

Lecture 2 - Chart Construction28

This lecture series is produced by the Market Technicians Association

Educational Foundation, Inc. based on the detailed class notes

of Charles D. Kirkpatrick II, CMT Copyright © 2007.

All rights are reserved.

StockCharts.com

Goldman Sachs Group, Inc. (GS)P&F Pattern: Ascending Triple Top Breakout - DailyAverage True Range (120) - 5.63 pts/box, 1 box reversal chart

Bollinger Bands