ud osher – olliudel.edu/~diyinvst/sc2_spring20_class1.pdfcombining technical analysis and...

How to read a Stock chart

UD Osher – OLLISpring 2020

Rajeev A. VaidyaGuy Werner

February 20 Rajeev Vaidya 1

Class DescriptionThis is an advanced course on technical analysis of stocks.We will discuss chart concepts, patterns, indicators and oscillatorsand how they can be used in investing decisions. We will use StockCharts(TM) as the web-based tool.A basic familiarity and comfort in using computers will be a useful skill for participants in this class. The Part I course offered in Fall 2019 or a basic understanding of technical analysis is essential to get value from this course.

Goals for this class:

In this course, you can expect to learn1. How technical analysis helps with investment decisions2. A few aspects of technical analysis that build on the basics learned in Part I3. How various people in class use technical analysis in their investments.


Your instructors

Guy Werner Rajeev Vaidya

We are all learning You are learning the course content. We are learning how to teach this !! We will welcome class participation and contributions.


Class Roster – Email

No

Investing with Options - BasicsRajeev VaidyaGuy Werner

# Name Email

Email address correct

I Opt out of Email

related to the class

The corrected

Email address is

1 Jane / John Doe [email protected] Jack / Jill Person [email protected] Patrick / Patricia Whome [email protected]

[email protected]

Class roster• Verify your Email address• Opt out if you do not want to receive Emails re: the class.

How to read stock charts


Class make-up

What level of experience do we have in class? Investing in Stocks and ETFs? Reading stock charts? Technical Analysis? Computer skills?

Three point scale Novice .. New to this Some Experience Good experience. Know the basics.

Raise your hands on each element. We will get a head count.


Class make-up

Element Novice Some experience

Good experience. Know the basics

Investing in StocksReading a stock chartTechnical Analysis

Computer skills


Class processes / plans

13 week semester. 13 classes No class on April 1st – April Fools Day – Spring Break

Draft Schedule & content outline is posted on the class website.

Class website http://udel.edu/~diyinvst Class documents posted each week before class. Stay on

the website till the end of the semester. No printed handouts in class

Rajeev Vaidya – [email protected] Class roster

verify your Email address Opt out if you do not want to receive Emails re: the class.


http://udel.edu/%7Ediyinvst

Class structure Minimum essential Powerpoint presentation More looking at charts together to understand concepts More discussion

Class processes / plans

Less charts & lecture – more live action & discussion

=


Web tool to look at charts

There are many web tools + your brokers website.

We will use StockCharts®

www.stockcharts.com

We have permission from Stockcharts® to use their website content.

We do not have special discounts for students to join. Stockcharts® offers one free month for trial Basic membership is $14.95/month Some common features available on the free site.


http://www.stockcharts.com/

Class sitting arrangement

We will look at charts in class. Screen size in the class is what it is. Charts have small print and since they are live on the website, I

cannot change that. Please leave the front rows for those that have trouble seeing the

chart details.


Reference Material

Stockcharts.com – Chart School Books

Technical Analysis of the Financial Markets – John J Murphy Introduction to Technical Analysis – Martin Pring Technical Analysis from A to Z – Steven Achelis

Technical Analysis Demystified – Constance Brown Stock charts for Dummies – Greg Schnell – Lita Epstein Technical Analysis for Dummies – Barbara Rockefeller

You do not need to buy the books as textbooks for this class. They will be great additions if you want to learn more.


Class Schedule

Class schedule is posted on the website.http://udel.edu/~diyinvst


http://udel.edu/%7Ediyinvst

Disclaimer in plain language

Opinions are like noses, everyone has one !

You are going to see Guy’s and mine in this course !!

We are simply sharing our perspective.

This is not investment advice or recommendation.

Guy and I are not a financial advisors.

This course is for educational purposes only.

Form your own opinion, make your own investment decisions.

Disclaimer – in plain language:


Class Introduction & Schedule Construction of the Standard chart we decided

to use in Part I What is the standard chart? How do you build it in Stockcharts®? What do the various parts of the chart tell us?

Today’s Class


Our basic standard chart

Candlestick chart on a logarithmic scale Volume – vertical bars at the bottom CTM and MACD with histogram below the chart RSI above the chart Bollinger Bands overlaid on price Volume by price slice overlay as needed.

Use the annotate tool in Stockcharts to: Draw in support and resistance including trend lines and channels Mark interesting features and patterns on a chart

Daily Chart 50 Day SMA 200 Day SMAWeekly Chart 10 Week SMA 40 Week SMA


Process

Start-up1. Connect to stockcharts.com2. Login if you have an account3. Type in any symbol

The standard chart comes up


Process

Daily Chart1. Overlays panel .. Third box. Use dropdown menu to pick ‘Bollinger

bands’.2. Indicators panel .. Third box. Use dropdown menu to pick

‘Chande Trend Meter.’ Default position setting is below – leave unchanged.

3. Go to top panel … a. change range. Click on drop down menu & pick ‘Predefined Range’. Now you

can adjust time frame to whatever you want.b. Change size … Click on drop down menu & pick ‘Landscape’

4. You can save this standard chart if you have a membership. If not, you need to do steps 1 to 3 each time.


Daily Chart Settings


ProcessWeekly Chart1. Overlays panel ..

a. Third box. Use dropdown menu to pick ‘Bollinger bands’. Change parameters in the box on the right to (4,2)

b. First box change the number of periods for moving average from 50 to 10c. Second box change the number of periods for moving average from 200 to 40

2. Indicators panel .. Third box. Use dropdown menu to pick ‘Chande Trend Meter.’ Default position setting is below – leave unchanged.

3. Go to top panel … a. change range. Click on drop down menu & pick ‘Predefined Range’. Now you

can adjust time frame to whatever you want.b. Change size … Click on drop down menu & pick ‘Landscape’

4. You can save this standard chart if you have a membership. If not, you need to do steps 1 to 3 each time.


Weekly Chart Settings


Class structure Minimum essential Powerpoint presentation More looking at charts together to understand concepts More discussion

Let’s go ride the bicycle

Less charts & lecture – more live action & discussion

=


Combining Technical Analysis and Fundamental Analysis to make Investment Decisions

Next week’s Class

Technical analysis is the study of market action primarily through the use of charts for the purpose of forecasting future price trends.

John J Murphy

Fundamental Analysis? – Macroeconomic, Market, Industry and Enterprise information that drives demand and supply – purpose estimate enterprise value


Thanks !!

Happy Investing !!

My EMail [email protected]

Class website http://udel.edu/~diyinvst


ud osher – olliudel.edu/~diyinvst/sc2_spring20_class1.pdfcombining technical analysis and...

Documents