mod2 week 2 chartbook

Week 2: Chart Analysis

Exercises for the trading course by Adam Grimes www.adamhgrimes.com

Table of Contents

Chart Stories ................................................................ 22 Price Action around Support and Resistance ................ 22 Pivot Points ................................................................. 28 Pivot Point Answers ..................................................... 49 Contact Information and Resources ............................. 69 Disclaimers .................................................................. 70

Week 2 Chart Analysis

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Section 1: Chart Stories

If the chart has text, answer the question or do the analysis prescribed on the chart. If there is no text, then write a separate explanation for each labeled bar. In

all cases, make sure that each bar that is designated with a letter label receives a text explanation. Adequate explanations will usually be 2-6 sentences long and

will focus on concepts such as the position of the open and close in the days range, the range of the bar relative to previous bars, and action around any

obviously support and resistance levels (though this is not a support and resistance exercise specifically). It may be useful to discuss action in terms of buyers

and sellers as two broad categories. Each bar has a story; your job is to tell that story. Rather than focusing on being right or wrong, focus on the thought process

and the inductive nature of this analysis.


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Chart Story 1


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Chart Story 2


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Chart Story 3


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Chart Story 4


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Chart Story 5


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Chart Story 6


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Chart Story 7


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Chart Story 8


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Chart Story 9


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Chart Story 10


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Chart Story 11


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Chart Story 12


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Chart Story 13


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Chart Story 14


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Chart Story 15


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Chart Story 16


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Chart Story 17


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Chart Story 18


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Chart Story 19


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Section 2: Price Action around Support and Resistance

Support and resistance is a problematic concept. Traditional technical analysis tells us that support and resistance is perhaps the most important concept in

technical analysis, but it is difficult to test and verify the validity of levels. Any line on a chart will appear to be significant, even if it is a completely random line

this is a function of how our brains process patterns. In the beginning, it is wise to limit use of support and resistance to the most obvious levels, i.e., those levels

that are clearly visible on a price chart. The following charts show examples of prices interacting with support and resistance levels. Follow the instructions on

each chart, or, in the absence of text on the chart, comment on the labeled bars, focusing on price action around support and resistance levels.


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Support and Resistance 1


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Section 3: Pivot Points

On each price chart, mark every pivot high and pivot low. Remember, a bar can be both a pivot high and a pivot low. Once this is done, mark second and third

order pivots as well. Answer keys, showing all first order pivots, and, in some cases, second and third order pivots, are provided for each chart.


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Pivot Points 1


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Pivot Points 2


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Pivot Points 3


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Pivot Points 4


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Pivot Points 5


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Pivot Points 6


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Pivot Points 7


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Pivot Points 8


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Pivot Points 9


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Pivot Points 10


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Pivot Points 11


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Pivot Points 12


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Pivot Points 13


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Pivot Points 14


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Pivot Points 15


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Pivot Points 16


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Pivot Points 17


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Pivot Points 18


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Pivot Points 19


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Pivot Points 20


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Pivot Points (Answer) 1


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Resources and Contact Information

www.adamhgrimes.com

email: [email protected]

twitter: @adamhgrimes

The Art and Science of Technical Analysis - http://www.amazon.com/author/adamhgrimes

Blog - http://adamhgrimes.com/blog

TAAS website - http://adamhgrimes.com/TAAS

Waverly Advisors Research - www.waverlyadvisors.com


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These videos and accompanying educational materials (collectively, the Educational Materials) are created and authored by Adam Grimes (the Content Creator) and are published and provided for informational and entertainment purposes only. The information in the Educational Materials constitutes the Content Creators own opinions. None of the information contained in the Educational Materials constitutes a recommendation that any particular asset, instrument, security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You understand that the Content Creator is not advising, and will not advise you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. To the extent any of the information contained in the Educational Materials may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. Any statements about income, expressed or implied, does NOT represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. From time to time, the Content Creator or its affiliates may hold positions or other interests in assets mentioned the Educational Materials and may trade for their own account(s) based on the information presented. The Content Creator may also take positions inconsistent with the views expressed in the Educational Materials. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or adhere to a particular trading program in spite of trading losses is material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. Futures Trading Disclaimer: Transactions in securities futures, commodity and index futures and options on futures carry a high degree of risk. The amount of initial margin is small relative to the value of the futures contract, meaning that transactions are heavily "leveraged". A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit: this may work against you as well as for you. You may sustain a total loss of initial margin funds and any additional funds deposited with the clearing firm to maintain your position. If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds on short notice to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss and you will be liable for any resulting deficit. The risk of trading can be substantial and each investor and/or trader must consider whether this is a suitable investment. You should use risk capital, and not capital required for other purposes, such as retirement savings, student loans, mortgages or education. Past performance, whether actual or indicated by simulated historical tests of indicators, is not indicative of future results.

mod2 week 2 chartbook

Documents

chart story

price chart

chart analysis exercises

traditional technical

resistance support

resistance levels

use of support

resistance exercise