A solid overview into modern technical analysis by long-time trader and best-selling author Adam Grimes. This course will give you a solid foundation in chart reading, understanding a trading edge, using indicators, and developing the process and skills to apply these tools in your own trading.
Technical Analysis: What and Why?
In this first lesson ‘Technical Analysis What and Why’ we're going to first consider why are people involved in markets; what's the goal of all trading and investing? Next, we're going to think about an “edge” in the market, where do people look for and find an edge, and last what is technical analysis.
Basic Chart Reading
In this lesson we will cover basic chart reading. We’re going to look at candles, then we’re going to compare those candles to bars. We’re going to review some basic candlestick patterns, then chart patterns from traditional technical analysis. At the end of the lesson you’ll have a way of looking at chart patterns that focuses on market structure.
Moving averages may be used to filter out noise and show us trends. In this lesson we’re going to look at some different types of moving averages, ways to use different combinations of moving averages, crosses between moving averages and then we’re going to consider how they are used in traditional technical analysis.
Bands and channels are one way to precisely define and to measure the distance that the market has moved from a moving average. In this lesson we’re going to look at some of the different types of bands, options for setting them up, specific ways to use them to quantify overbought/oversold conditions in markets, and then we’re also going to talk about what bands can tell us about momentum. We’ll cover Bollinger Bands, Keltner channels, and Moving Average Channels.
In this unit we’re going to talk about indicators. What are indicators? What can they do? Also, very importantly, what can they not do? We're going to look at some common indicators, such as MACD, ADX, RSI, Stochastic and think about some ways that we might use them.
What is volatility, how do we measure volatility, and why do we care about volatility? Volatility is a little bit different than many other aspects of the market. We can see patterns, we can see volume, we can see movements between price levels but volatility is hidden, volatility must be calculated. Adam will cover True Range volatility, volatility compression, implied volatility and more!