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Technical Analysis

The foundation of any successful investing program is discipline in decision making.  The wild swings of the market are perfect evidence that most investors act emotionally.  There are innumerable methods available to buy and sell stocks, commodities or anything else that moves.  I.T.S. DOES not espouse any method but provides the means to create one.  Technical Analysis is the study of charts and is simply the study of behavior.  Fundamental analysis is far more complex and involves dozens of variables.  For example every major public company has dozens of analysts following the company, the industry, creating earnings estimates etc.  Unfortunately the best analyst may be successful in predicating sales and earnings but cannot predict the future stock price, but a stock’s price does not always follow its earnings history.  Often times a company will announce better than expected earnings only to see their stock price drop.

The Technical Analysis Course provides the investor a set of visual tools to study the behavior of a stock, or any other instrument and identify patterns and tendencies without regard to what may or may not have created those movements, i.e., news, earnings, management’s statements.  The technical analysis course is a prerequisite to any of the other courses and covers the following areas:

  1. Types of charts – day, intra-day, line, high-low-close, candlestick charts
  2. Basics of indicators – moving averages, trend lines, oscillators, the concept of support and resistance.
  3. Understanding  relative strength – a security’s performance vs. another security, vs. an industry group or the market as a whole
  4. Understanding trends
  5. Identifying buy and sell points
  6. The relationship between price movement and volume and why any movement may be less meaningful on low volume
  7. The concept of divergence
  8. Buy signals, sell signals
  9. Identifying stop losses
  10. Gaps and why to avoid them
  11. Failure swings
  12. What is a double bottom

The Introduction to Technical Analysis is a three-hour course taught in two sessions.  Spouses are free and classes may be repeated at no charge.

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