2. Your First Step Intothe World Of Trading

3. Understanding The Basics of Trading

4. Today’s Economy: The good, the bad and the ugly.

5. Technical Analysis Trading Patterns

6. Forex 201 B - Technical Analysis Definition o Study of market action through the use of historical charts o To forecast future price trends 6

7. Forex 201 B - Technical Analysis 7 Trend & Channel Line o The trend is simply the direction of the market o Market moves are characterized by a series of consecutive waves with peaks and troughs o It is the direction of those peaks and troughs that forms the trend o Trends can be classified in three types: Uptrend & Ascending Channel Downtrend & Descending Channel Sideways & Horizontal Channel

8. Forex 201 B - Technical Analysis 8 Trend & Channel Line Example – Uptrend o A series of consecutive higher highs and higher lows where the overall direction of the market is upward. o Investors usually go long the market (buy) o Example of an Uptrend with ascending peaks and troughs

9. Forex 201 B - Technical Analysis 9 Support & Resistance Support o Buying force of traders is strong enough to overcome the selling pressure. o Buyers become more inclined to buy. o Buyers don’t want to miss out on the opportunity again. o Support does not always hold where a decline below that level indicates that sellers in the market have won out over the buyers. o Prices can sometimes break a support but stay trading near that level and turn back higher. In this case, a false break is generated.

10. Forex 201 B - Technical Analysis 10 Support & Resistance Support

11. Forex 201 B - Technical Analysis 11 Support & Resistance Resistance o Sellers outnumber the buyers and prices correct toward lower levels. o The increase in prices is halted and turned back.

12. Forex 201 B - Technical Analysis 12 Reversal Patterns Head and Shoulders

13. Forex 201 B - Technical Analysis 13 Reversal Patterns Double Top o Top-“M” Shaped Reversal Pattern. o Markets are in an upward trend and have two peaks. o The reversal pattern is not complete unless selling pressure is accelerated to break and close below the support on a continuous basis.

14. Forex 201 B - Technical Analysis 14 Reversal Patterns Double Top

15. Forex 201 B - Technical Analysis 15 Continuation Patterns o Occurs when prices move sideways after the formation of a trend (uptrend or downtrend). o Continues in the same direction as the previous trend after completing the pause and breaking the pattern. Triangles o Patterns form shapes of triangles. o Composed of three types: Symmetrical, Ascending, Descending. Symmetrical Triangle o Neutral pattern formed by upper descending and lower ascending lines. o Connecting at least two lower highs and two higher lows. o Trend lines act as supports and resistances and any break is followed by significant move. o Usually, pattern breakout follows the previous trend before the triangle.

16. Forex 201 B - Technical Analysis 16 Continuation Patterns Symmetrical Triangle

17. Forex 201 B - Technical Analysis 17 Continuation Patterns Ascending Triangle o A bullish pattern is formed by a horizontal upper line with equal highs and an ascending line with higher lows. o Buyers outweigh sellers to an extent pushing prices higher and breaking the upper resistance line. Descending Triangle o A bearish pattern is formed by a horizontal line with equal lows and a descending line with lower highs. o Mirror image of the ascending triangle. o Sellers are more aggressive and push prices below the support line.

18. Forex 201 B - Technical Analysis 18 Continuation Patterns Ascending Triangle

19. Forex 201 B - Technical Analysis 19 Continuation Patterns Descending Triangle

20. Technical Analysis Trading Indicators

21. Moving Averages 21 Definition o The average of the closing prices of the last “X” number of days. o Used to give an indication about trends’ direction such as the end of an old trend, the beginning of a new trend, the reverse of a trend to the upside or the downside and the levels of support and resistance.

22. Moving Averages 22 Role Generating Signals: o Using one MA: Prices cross above MA, a buy signal is generated and vice versa. o Using two MA: If shorter period (50 day MA) crosses above longer one (100 day MA), buy signal is generated.

23. Moving Averages 23 Simple Moving Average

24. Moving Averages 24 Moving Averages – Cross Signals

25. Moving Averages 25 Determining Levels of Support & Resistance o Mostly used moving averages are 10, 50, 100 and 200 days. o Most traders react simultaneously when prices reach these lines.

26. Oscillators 26 Relative Strength Index (RSI) o Ranges from 0 to 100, however, most traders interpret 70 and 30 as the Overbought and Oversold levels. o RSI > 70, prices are overvalued and a correction to the downside should be in place. o RSI < 30, prices are undervalued and a correction to the upside should be in place.

27. Oscillators 27 Relative Strength Index (RSI)

28. Oscillators 28 Relative Strength Index (RSI)

29. Oscillators 29 Relative Strength Index (RSI) – Divergence

30. Oscillators 30 Relative Strength Index (RSI) – Divergence

31. Fibonacci Retracement 31 o Based on the idea that markets will retrace a predictable portion of a move, after which they will continue to move in the original direction. o Determine major prices in the markets at which the security will retrace before continuing in the original trend or direction. o Help identify strategic places for transactions to be placed, target prices or stop losses. o Use the Fibonacci tool by identifying a major peak and trough on a chart. o Major horizontal lines of supports and resistance levels are identified by the key Fibonacci ratios of 23.6%, 38.2%, 50% and 61.8%, 76.4%.

32. Oscillators 32 Example

33. Intermarket Analysis

34. Intermarket Analysis: An introduction

35. What is Intermarket Analysis? 35 The analysis of more than one related asset class or financial market to determine the strength or weakness of the financial markets or asset classes being considered. This type of analysis expands on simply looking at each individual market or asset in isolation by also looking at other markets or assets that have a strong relationship to the market or asset being considered. Single-market analysis is the study of one asset class or market in a single country. Intermarket analysis, on the other hand, is the study of multiple asset classes in a variety of markets in nations around the globe.

36. Advantages of Intermarket Analysis 36 1) The market is a big, confusing beast. It can be overwhelming for the eager investor. 2) By following multiple markets, an investor gets the big picture and is able to see significant market and economic changes earlier than investors with a single market focus 3) If we know how to use Intermarket analysis it will enhance our performance over time

37. How it is done ?

38. S&P 500 vs Bond Yields 38

39. EUR and DAX after QE 39

40. Market Movers

41. NZD vs Food Prices 41

42. AUD vs Gold 42

43. JPY vs Nikkei 43

44. How Intermarket Analysis Affects Your Decision on Correlation?

45. Oil vs CADJPY 45

46. Case Study: US Dollar and US Equities 46

47. Utilities leads Financials 47