1. Indicators/Oscillators
Technical Analysis
Vol.2
PRICE & TIME
(health of the Stock)
Trade with
<CHARTS>
INDICATORs
VOLUME
Indicators/Oscillators
(Diagnosis)
From the desk of
venKEY
…………………….
Hyderabad-AP
INDIA
TECHNICAL Analysis
Confirmations & Indicators
Trading Friend
Trend Advisor
Dynamic Subject
Logical Thinking towards Price Action
forex2tradeindia
Your Success Story Begins from HERE -
venKEY

2. Finding Price Action & Confirmation Believe in Charts
Technical Analysis - INDICATORS
Vol.2
Symptoms (on CHART)
Moving Averages
Support & Resistance (Moving Average based)
Bollinger Bonds
Parabolic SAR
Pivot Points
Fibonacci
Heikin Ashi
Itchmuchi
Believe in Charts
Confirmations & Indicators
How to win Market with(out) Technical Indicators.
Technical Analysis is the biggest aspects that influences the trader’s mind and decision when start trading.
Thousands of indicators even strategies and tricks can be easily found in many in forums but only few make money? Right.
Why do you fail using technical indicators?
Because technical indicators can not beat News or Fundamental Analysis.
From the desk of - venKEY
venKEY

3. PRICE ACTION (without Indicators)
Vol.2
Identify Market Interpretation using PRICE & Volume
PRICE
VOLUME
(Open Interest)
INTERPRETATION
Rising
- STRONG
- BULLISH
Price continue to RISE
Falling
WEAKENING
MODERATELY BEARISH
*Current uptrend WEAKENING
- WEAK
- BEARISH
* Downtrend Continues
- STRENGTHENING
- MODERATELY BULLISH
Current Down Trend
Weakening
BUY on DIPS
When Market opens
GAP DOWN
(follow trend)
SHORT on HIGH
When Market opens
GAP UP (follow trend)
FLAT MARKET
Buy Above Levels
SELL- below Levels
Price Action Formulae
Go LONG above
If price sustains above 2nd Resistance Level
Go SHORT below
If price sustains below 2nd Support Level
All Stop Loss on Closing Basis & Also Follow Trend
venKEY

4. INDICATORS tries to read
Vol.2
The SAGA of an INVESTOR
Price>
Investors Emotion – Price Action
venKEY
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5. Confirmations & Indicators
Introduction
- This article is designed to introduce the concept of technical indicators and explain how to use them in your analysis.
- We will shed light on the difference between leading and lagging indicators, as well as look into the benefits and drawbacks.
Many, if not most, popular indicators are shown as oscillators. With this in mind, we will also show how to read
oscillator and explain how signals are derived.
Later we will turn our focus to specific technical indicators and provide examples of signals in action.
TA - INDICATORS
Candlestick Chart
Upper
Bollinger Bond
Script / Time Frame / O H L C
Market Watch -----
Bull Candle
Bear Candle
Lower Time Frame
Moving Avg.
Price Band
Lower
Bollinger Bond
Confirmations & Indicators
Fractals
Moving Average Cross Over
Navigator
Buy Volume
Volumes
Time Frame
A technical indicator is a series of data points that are derived by applying a formula to the price data of a security. Price data includes any combination of the open, high, low or close over a period of time. Some indicators may use only the closing prices, while others incorporate volume and open interest into their formulas. The price data is entered into the formula and a data point is produced. For example, the average of 3 closing prices is one data point ( ( ) / 3 = ).
However, one data point does not offer much information and does not an indicator make. A series of data points over a period of time is required to create valid reference points to enable analysis. By creating a time series of data points, a comparison can be made between present and past levels. For analysis purposes, technical indicators are usually shown in a graphical form above or below a security's price chart. Once shown in graphical form, an indicator can then be compared with the corresponding price chart of the security. Sometimes indicators are plotted on top of the price plot for a more direct comparison.
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6. Confirmations & Indicators
Technical Analysis
MOVING Averages (1/2)
<MA are laggard> but we shall not ignore when it gives a signal. Confirm with other Indicators
1. SMA (Simple Moving Avg.) Calculation:
Daily Closing Prices: 11,12,13,14,15,16,17 First day of 5-day SMA: ( ) / 5 = 13 Second day of 5-day SMA: ( ) / 5 = 14 Third day of 5-day
SMA: ( ) / 5 = 15
2. EMA (Exponential Moving Avg.) Calculation:
SMA: 10 period sum / 10
Multiplier: (2 / (Time periods + 1) ) = (2 / (10 + 1) ) = (18.18%)
EMA: {Close - EMA(previous day)} x multiplier + EMA(previous day)}
Moving averages smooth the price data to form a trend following indicator (TFI)
They do not predict price direction, but define the current direction with a lag (because basing on past prices)
Despite this lag, moving averages help smooth price action and filter out the noise.
They also form the building blocks for many other technical indicators and overlays, such as Bollinger Bands, MACD and the McClellan Oscillator.
These moving averages can be used to identify the direction of the trend or define potential support and resistance levels.
Confirmations & Indicators
3. TMA (Tri-angler Moving Avg.)
The triangular moving average (TMA) is a weighted average of the last n prices (P), whose result is equivalent to a double smoothed simple moving average (i.e. calculated twice).
(this is not popular Technically)
Calculation:     SMA = (P1 + P2 + P3 + P Pn) / n     TMA = (SMA1 + SMA2 + SMA3 + SMA SMAn) / n
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7. Confirmations & Indicators
Technical Analysis
MOVING Averages (2/2)
Trading with Moving Averages: (Moving averages can work only when trend is there)
………………………………………….…………..
In a perfect uptrend 13 EMA will be greater than 30 EMA where both the line continue to rise.
………………………………………………..……
In a perfect down trend 13 EMA will be lesser then 30 EMA where both the line continues to fall.
……………………………………………………..
When 13 EMA goes above 30 EMA known as GOLDEN cross-over/BULLISH cross-over
………………………………….…………………..
and where 13 EMA goes below 30 EMA known as DEAD cross-over/BEARISH cross-over.
Moving Average is a Trend following Indicators
(only TFI can generate Buy/Sell Signals)
Oscillators (helps analyst about the movement and trend of stock) also known Co-incidental indicators.
Moving average is one of the MOST TRUSTED trends following indicator.
It is based on closing price basis.
Moving average basically a mathematical device which is used to detect the UNDERLINE trend of the market.
There are several type of Moving averages but modern technical used Exponential moving averages.
Moving average as TFI always generates late signals.
So it is regarded as the ‘LAGGERED indicator”
But when moving average generate a valid signal it s so confirmed that one should not ignore it.
In the past Technical Analyst use only single moving average i.e., 13 day (13 EMA)…
But with passage of time more and more research have coming into the subject and system of Double Moving Average was introduced. Relative positioning of 13 and 30 EMA gives us BUY and SELL signals as the case may be.
Confirmations & Indicators
Moving Average Calculation
Finally about MAs
It is a TFI
Not works where no trend
Cross over is criteria
Laggard Indicator
Valid and True Indicator
Day 1 2 3 4 5 6 7 8 9
Price 16 17 10 18
5 SMA -
15.4
15.8
17.2
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8. Support / Resistance - MAs
Technical Analysis
Support / Resistance - MAs
Memories of Trades to recall /wish again
Trader type vs. Moving Averages (Sup.& Res.)
SUPPORT
-: Scalpers :-
Periods : 5/ 13 MA
Time Frame : M-15, M-30
-: Day traders :-
Periods :13 / 30 MA
-: Swing traders :-
Periods : 30 / 50 MA
: Long Term traders :-
Period :30 /100 / 144 /200 MA
Time Frame : (H4/Day/Weekly)
RESISTANCE
Price frequently gets fresh that Avg. Price.
Price appears cheap
Technical Interest
Risk : Reward is good.
Traders emotions/Short-covering can seen
…………………………
Often referred to as the “MA-Support Level“.
Price frequent touch the line and trades below due to lack of fresh liquidity
Price appears costly
Technical Selling
Low Sl. & High Tgt.
- Bears try hold
…………………………
Often referred to as “MA-Resistance Level". 
Trader Vs. SUPORT & RESISTANCE
Violation of MA-Support
and Crossing below of Higher Time Frame MA gives…Technically SELL calls
Violation of MA-Resistance
and Crossing above to Higher Time Frame MA gives…Technically BUY calls
Support & Resistance
are INTER-CHANGABLE
venKEY
p MA = Period Moving Average (No. of Candles/Bars) d MA = Day Moving Averages (No. of Days

9. Price Ranging – Relative HIGH/LOW
Technical Analysis
BOLLINGER Bonds
A band plotted two standard deviations(2) away from a simple moving average (20),
Periods : 20
Standard Deviation :2
Bollinger Bands -technical trading tool (John Bollinger 1980) 
They arose from the need for adaptive trading bands and the observation that volatility was dynamic, not static as was widely believed at the time.  Bollinger Bands is to provide a relative definition of high & low. By definition prices are upper band and the lower band.
This definition can aid in rigorous pattern recognition and is useful in comparing price action to the action of indicators to arrive at systematic trading decisions. 
Bollinger Bands consist of a set of three curves drawn in relation to securities prices.
The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper band and lower band.
The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average.
Price Ranging – Relative HIGH/LOW
venKEY 9

10. PARABOLIC SAR Trialing Stoploss & Trade Reverse
Technical Analysis
PARABOLIC SAR
It works very fine in Trending Market.
In a Choppy Trend it give False trade reversals – confirm with Higher Time Frames / Prime (Main) trend
Parabolic = Follow; SAR=Stop And Reverse
Good Combination is :
Parabolic SAR + ADX (Trend Strength)
Trading with Parabolic SAR
trailing-stops
(Lock Profits)
Buy Conditions :
Parabolic SAR Dot below Price Candle
ADX is Above 20
Sell Conditions :
Parabolic SAR Dot above Price Candle
ADX is Below 50
Trialing Stoploss & Trade Reverse
Parabolic SAR is an indicator that, like Bollinger Bands is plotted on price.
General idea : buy in up trends when the indicator is below price, and sell in down trends when the indicator is above price.
In positions : Parabolic SAR assists in managing the position with trailing-stop (Dots).
venKEY 10

11. PIVOT Points Pivot Support & Resistance (Daily/Weekly)
Technical Analysis
PIVOT Points
Pivot Support & Resistance (Daily/Weekly)
Professional traders & market makers use pivot points to identify important support and resistance levels.
Simply put, a pivot point and its support/resistance levels are areas at which the direction of price movement can possibly change.
Pivot points useful to short-term traders who are looking to take advantage of small price movements.
Pivot points can be used by both range-bound traders and breakout traders. Range-bound traders use pivot points to identify reversal points.
Breakout traders use pivot points to recognize key levels that need to be broken for a move to be classified as a real deal breakout.
Confirm Main Trend & Overbought & Oversold Conditions
Pivot Calculation
Day / Weekly Supp.& Res. point
Pivot point (PP) = (High + Low + Close) / 3
Support and resistance levels are then calculated off the pivot point like so:
First level support and resistance:
First support (S1) = (2*PP) – High
First resistance (R1) = (2*PP) – Low
Second level of support and resistance:
Second support (S2) = PP – (High – Low) Second resistance (R2) = PP + (High - Low)
Software will automatically plot it on the chart.
R-3
R-2
R-1
PIVOT
S-1
S-2 S3
HOW to trade with PIVOTs :
If price at PP, watch for a move back to R1 or S1.
If price is at R1, expect a move to R2 or back towards PP.
If price is at S1, expect a move to S2 or back towards PP.
If price is at R2, expect a move to R3 or back towards R1.
If price is at S2, expect a move to S3 or back towards S1.
If there is no significant news to influence the market, price will usually move from P to S1 or R1.
In a strong trend, price will blow through a pivot line and keep going.
Pivot lines work well in sideways markets as prices will most likely range between the R1 and S1 lines.
If there is significant news to influence the market price may go straight through R1 or S1 and reach R2 or S2 and even R3 or S3.
R3 and S3 are a good indication for the maximum range for extremely volatile days but can be exceeded occasionally.
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12. FIBONACCI ratios Trend Strength & Retracement
Technical Analysis
FIBONACCI ratios
The ratios arise from the following number series: 1, 1,1, 2, 3, 5, 8, 13, 21, 34, 55, 89,
Leonardo Fibonacci,
 Italian mathematician. 
Compare your Body flexibility
Fibonacci ratios correlate two trends; (1) primary (2) secondary. 
The primary trend refers to a trending move in one direction while the secondary trend will refer to counter trend moves in the opposite direction. 
161
100 61
Whole Trend 50 38
Division of TREND in % (Candle %) {PRICE level}
Trend Strength & Retracement
Facts of Fibonacci Ratios (known as Fibo Trading Levels)
Common Fibonacci retracement levels are 38.2%, 50%, and 61.8% of the primary trend (Most Popular Charting Software standard levels.)
Fibonacci retracement levels act almost as magnets once the counter trend rally takes place. 
There are a few other Fibonacci levels 75%, 78.6%, 87.5%, and 88.7% that can provide resistance.
4 Thumb Rule is when the 50% retracement level is taken out, the four levels become magnets to attract price. 
Price action must be analyzed at those levels to understand if the countertrend move will cease or whether it will continue to fully retrace the primary move.
Fibonacci retracement levels are used by many floor traders and therefore become very relevant to your Fibonacci trading activities. 
These levels are so widely used now by traders, including systematic trading, that they almost become a self-fulfilling prophecy.  
Some advanced traders will take it a step further and add Fibonacci arcs and Fibonacci fans to their trading arsenal, in search of an edge.
venKEY

13. Different Trading Strategy
Technical Analysis
HEIKIN Ashi
Heikin Ashi is a type of trading chart that originated in Japan (heikin ashi translates as average bar).
Heikin Ashi charts are similar to candlestick and bar charts in that they show similar information (the open, high, low, and close of the time frame), but Heikin Ashi charts calculate the information differently.
Heikin Ashi charts are usually displayed as candlestick charts (i.e. where the color of the candlestick denotes the direction), but they can just as easily be displayed as bar charts (i.e. where the location of the open and close denote the direction).
Heikin Ashi charts are usually used in place of a standard candlestick or bar chart, but can also be displayed in addition to the standard chart (i.e. as an indicator). In the example chart, the standard candlestick chart is shown in the upper section, and the Heikin Ashi chart is shown in the lower section
Heikinashi on Candlestick Chart
Heikinashi Chart
green Candle,
Red Candle
The Heikin Ashi candlesticks (the lower section) change direction (i.e. color) less often, indicating that the price is still moving in the same direction.& Shows Strength
Different Trading Strategy
Trading Use :
Heikin Ashi charts are used in trading in the same manner as standard candlestick or bar charts.
(chart patterns are used to indicate price movements).
Heikin Ashi charts have an additional aspect in that the direction of the bar (in color) is supposed to indicate the overall direction of the market, while ignoring the intermediate direction.
(detects false changes of direction).
In the example chart, the standard candlesticks (the upper section) change direction (i.e. color) quite often even though the price is still moving in the same overall direction.
Description: 
Heikin Ashi charts calculate their own open (HAO), high (HAH), low (HAL), and close (HAC), using the actual open (O), high (H), low (L), and close (C), of the time frame (e.g. the open, high, low, and close, of each five minutes).
Calculation:     HA Open = (HAO-1 + HAC-1) / 2     HA Close = (O + H + L + C) / 4     HA High = Highest(H, HAO, HAC)     HA Low = Lowest(L, HAO, HAC)
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14. Heikin Ashi’s Doji Candle for the Exit strategy.
Technical Analysis
Itch MOKU
How to trade with this wonderful setup which is actually a combination of Ichimoku Kumo Breakouts and
Heikin Ashi’s Doji Candle for the Exit strategy.
This strategy can be applied on any market and any timeframe.
We get better and more reliable signals on 4H
Trading Rules: 1. Wait for the Candle to Close outside Kumo Cloud 2. During Next Candle, place a Pending Order at the Closing Price of last candle 3. Place the Initial SL below the Kumo Cloud 4. Enjoy your trade as long as the price is above Kumo Cloud (for Bullish trades, price should be below Kumo Cloud for Bearish Trades) 5. Watch out for Heikin Ashi Doji Candle 6. Once you’ve a Doij (Closed) candle, move your SL at the LOW of that Doji Candle 7. If the DOJI is validated, the LOW should be taken out during the next few candles and your profits will be booked 8. If the DOJI wasn’t validated (as it happened at Point 2 in our chart) your trade will continue 9. Keep looking for New DOJI candles and move the SL at the LOW of new DOJI Candles (notice how our profit was booked at Point 3) 10. Same procedure applies in reverse form for a
Short Selling Trade
Different Trading Strategy
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15. PRICE ACTION (without Indicators)
Vol.2
Price Action Formulae
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