MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 1 - Introduction to Technical Analysis This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © All rights are reserved. 1 Viewing the Company versus the Stock
MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 1 - Introduction to Technical Analysis This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © All rights are reserved. 2 Support and Resistance
MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 1 - Introduction to Technical Analysis This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © All rights are reserved. 3 Walt Disney - Daily O,H,L,C Resistance Support Walt Disney - Daily StockCharts.com
MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 1 - Introduction to Technical Analysis This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © All rights are reserved. 4 Merck & Co. - Daily H,L,C Wide gap down on negative news Merck - Daily StockCharts.com
MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 1 - Introduction to Technical Analysis This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © All rights are reserved. 5 S&P 500 Stock Index - Monthly H,L,C Secular bull market S&P Monthly
MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 1 - Introduction to Technical Analysis This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © All rights are reserved. 6 S&P 500 Stock Index - Weekly H,L,C Cyclical bull market Cyclical bear market S&P Weekly StockCharts.com
MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 1 - Introduction to Technical Analysis This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © All rights are reserved. 7 NASDAQ 100 Index - Weekly H,L,C Secondary trend NASDAQ - Weekly StockCharts.com
MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 1 - Introduction to Technical Analysis This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © All rights are reserved. 8 Dow Jones Industrial Average 1896 and present Kirkpatrick & Dahlquist Chart 3.2 May 26, 1896 Original Dow Jones Industrial Average American Cotton Oil American Sugar American Tobacco Chicago Gas Distilling & Cattle Feeding General Electric Laclede Gas National Lead North American Company Tennessee Coal & Iron U.S. Leather pfd. U.S. Rubber Current Dow Jones Industrial Average 3M Alcoa Altria Group American Express AT&T Boeing Caterpillar Citigroup Coca-Cola DuPont Exxon Mobil General Electric General Motors Hewlett-Packard Home Depot Honeywell Intel IBM Johnson & Johnson JPMorgan Chase Kraft Foods McDonald’s Merck Microsoft Pfizer Procter & Gamble United Technologies Verizon Communications Wal-Mart Walt Disney
MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 1 - Introduction to Technical Analysis This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © All rights are reserved. 9 Kirkpatrick & Dahlquist Chart 6.1 Dow Theory and the Ideal Marketplace Top Bottom Uptrend Downtrend
MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 1 - Introduction to Technical Analysis This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © All rights are reserved. 10 Kirkpatrick & Dahlquist Chart 6.2 Primary Uptrend Secondary Downtrend (A-B) Minor Trends A B Dow Theory Three Trend Types May May 2005 DJ Industrials - Weekly StockCharts.com
MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 1 - Introduction to Technical Analysis This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © All rights are reserved. 11 Dow Theory of “Confirmation” DJIA and DJTA - Weekly - May 2002-May 2005 Confirmation of New High in Transports New High Kirkpatrick & Dahlquist Chart 6.3 DJ Industrials - Weekly DJ Transports - Weekly StockCharts.com
MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 1 - Introduction to Technical Analysis This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © All rights are reserved. 12 S&P Weekly Russell Weekly New High Beginning of Primary Uptrend (Large Cap versus Small Cap) Confirmation Between S&P 500 and Russell 2000 Weekly - May September 2005 Kirkpatrick & Dahlquist Chart 6.4 StockCharts.com
MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 1 - Introduction to Technical Analysis This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © All rights are reserved. 13 Kirkpatrick & Dahlquist Chart 6.5 S&P Weekly Rising Price Rising Volume (Bullish) Declining Volume Rising Price Declining Price Rising Volume (Bearish) Volume Confirmation August May Weekly StockCharts.com
MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 1 - Introduction to Technical Analysis This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © All rights are reserved. 14 Kirkpatrick & Dahlquist Chart 2.1 Sideways Trend Horizontal Peaks Horizontal Troughs Uptrend Higher Peaks Higher Troughs Lower Peaks Lower Troughs Downtrend The Trend
MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 1 - Introduction to Technical Analysis This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © All rights are reserved. 15 Dow Jones Industrial Average and Dow Jones Transportation Average - Weekly H,L,C Declining bottoms Rising bottoms Declining bottoms Rising bottoms DJ Industrials - Weekly DJ Transports - Weekly StockCharts.com
MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 1 - Introduction to Technical Analysis This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © All rights are reserved. 16 Kirkpatrick & Dahlquist Chart 2.2 Trend Lines from Top to Top and Bottom to Bottom CNET - Weekly StockCharts.com
MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 1 - Introduction to Technical Analysis This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © All rights are reserved. 17 Daily and Hourly CNET Networks Kirkpatrick & Dahlquist Chart 2.4 CNET - Daily