Technical Analysis - A practical approach for trade entry
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Technical Analysis - A practical approach for trade entry

Technical Analysis is a vital tool to assist in proper trade entry. A great entry increases your chances of success.
4.6 (44 ratings)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
402 students enrolled
Created by Hari Swaminathan
Last updated 2/2013
English
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Current price: $10 Original price: $60 Discount: 83% off
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Includes:
  • 2 hours on-demand video
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What Will I Learn?
  • Master Technical analysis and learn to time your trade entry as accurately as possible
  • Create a reliable set of indicators to guide you with trade entry
  • Learn all about Price indicators, Momentum indicators, Oscillators, Support and Resistance, Volatility indicators and Volume indicators
  • Practical examples of using Technical analysis for high probability trades
  • 5 cutting edge Case studies of Technical analysis in action
View Curriculum
Requirements
  • Basic understanding of markets and trading
Description


MASTER TECHNICAL ANALYSIS

Technical analysis has become extensive in recent years. We study the psychology of technical analysis and why they work 60 to 70% of the time. There are several categories of technical analysis - Price indicators, Support and Resistance levels, Momentum indicators, Volume indicators, Oscillators and Statistical price movement indicators. This is again an area where the KISS rule applies - Keep It Simple S-----. We cut through all the noise and show you why there are 4 or 5 indicators you should study and that's all you really need to make informed entry and exit decisions. Technical analysis is a self-fulfilling prophecy and gives deep insight into crowd behavior.

 

What you will master

 

  • What is Technical Analysis and why is crowd psychology an important factor in markets
  • Why does technical analysis work only 60 to 70% of the time
  • Why are Price indicators called "lagging" indicators
  • What are potential "leading" indicators
  • A study of Moving averages and which ones are helpful
  • What are the best indicators for short, medium and long term trends
  • Why do we need a "confluence" of indicators to make a decision
  • Why the Bollinger Bands are a cool indicator
  • Adjusting technical indicators to match your trading timeframe
  • Why technical analysis "works until it doesn't"

 

SECTION 1

Lecture I -  What is Technical Analysis

Technical analysis is primarily a study of Crowd psychology and crowd behavior. If a certain number of people act in unison at a certain time, and other people can observe this group of people taking a certain action, then they are motivated to join in. And it becomes a self-fulfilling prophecy. Technical analysis is a very powerful force in the markets, but it has limitations. This Introductory lecture explains these details.

 

Lecture 2 - Crowd psychology and Crowd behavior

What is crowd psychology and why does it matter ? In this lecture, we study the S&P 500 Index over the last 20 years, and also observe a certain technical pattern that is currently playing out textbook-style. How could this pattern impact the markets this year ? 

 

Lecture 3 -  Limitations of Technical Analysis

What are the limitations of Technical analysis - when does it work, and when does it not work. Knowing when it does not work is as important as knowing when it works.

 

SECTION 2

Section 2 is a detailed discussion of all the types of Technical analysis indicators. You have various kinds - Price Indicators, Momentum indicators, Statistical and Volatility indicators, Support and Resistance, Volume indicators and Oscillators. Each of these indicator types are broken down in detail as well as insightful tips on their usage and interpretation.

 

SECTION 3

Section 3 is a complete case study set of 5 stocks - 

1) Apple (AAPL) - 1 Year Chart. And how AAPL gave 3 points of entry for the perfect Bearish trade.

2) Priceline (PCLN) - No clear long-term signals, but a short term bearish trade could be played out.

3) Chipotle Mexican Grill (CMG) - an absolutely amazing Statistical indicator gives away the perfect "Long" signal

4) The Gold ETF GLD - Hidden inside a very bearish chart is the potential for a reversal trade

5) And on the Google (GOOG) charts, we can study the battle between the Bulls and Bears at a recent breach of Google's all-time high.

 

Applying correct Technical Analysis techniques can set you with a fantastic trade entry. If you get your trade entry correctly, you have just increased your chances of a profitable trade a whole lot. 

 

This course will be bundled with "Volume Analysis". You can pick up both of these courses together for a savings of 15%.



Who is the target audience?
  • If you want to be an expert in Chart reading skills
  • If you trade anything in the markets - Stocks, Futures, ETFs, Currencies, Gold
Students Who Viewed This Course Also Viewed
Curriculum For This Course
Expand All 15 Lectures Collapse All 15 Lectures 01:45:20
+
Introduction to Technical Analysis
3 Lectures 30:38
Technical analysis is primarily a study of Crowd psychology and crowd behavior. If a certain number of people act in unison at a certain time, and other people can observe this group of people taking a certain action, then they are motivated to join in. And it becomes a self-fulfilling prophecy. Technical analysis is a very powerful force in the markets, but it has limitations. This Introductory lecture explains these details.
Preview 14:28

What is crowd psychology and why does it matter ? In this lecture, we study the S&P 500 Index over the last 20 years, and also observe a certain technical pattern that is currently playing out textbook-style. How could this pattern impact the markets this year ? 
Crowd psychology and crowd behavior
10:10

What are the limitations of Technical analysis - when does it work, and when does it not work. Knowing when it does not waork is as important as knowing when it works.
When does Technical analysis not work
06:00
+
Technical Analysis indicators
6 Lectures 42:07
Moving averages are the most popular indicators based on price. we study the construction of helpful moving averages and crossovers for different timeframes.
Indicators based on Price action - Moving averages
09:11

Support and Resistance some of the most watched points in a stock's history. This is because what happened in the past at certain points are "facts" recorded permanently into the stock's history. In many ways, these are better than indicators because of its factual characteristics.
Support and Resistance
04:45

The MACD is a widely used indicator that shows momentum behind a certain move. 
Momentum Indicators - MACD Indicator
05:37

The RSI is a widely used indicator - It tells you when a stock is at "overbought" or "oversold" conditions. This kind of an indicator is called an oscillator.
Oscillators - Relative Strength Index (RSI)
05:11

Bollinger Bands are very powerful indicators. They tell you when a stock is likely to make a "reversal" trade because it has travelled too far too quickly. This is a statistical indicator but can be very reliable and very powerful.
Statistical indicators (or Volatility indicators) - Bollinger Bands
08:20

This lecture briefly looks at Volume analysis, which is covered in another course. It also covers the ideal chart setup with the ideal set of indicators.
Volume Analysis Primer and Ideal Chart Setup with indicators
09:03
+
Chart Analysis
6 Lectures 32:35
A case study of Apple's Chart over the past year. We can see confluence coming in from 3 different indicators, at different times. In total, there were 3 opportunities to enter a bearish trade, all of which would have been very profitable.
Case Study 1 - AAPL Charts
07:09

A case study of Priceline's charts for the last few months. The analysis reveals a potential short-term bearish trade
Case Study 2 - Priceline Charts (PCLN)
05:11

Studying the CMG 6 months chart, we see an extreme reading on the chart. Anybody watching this would have taken a brilliant trade.
CMG Case Study 3 - Chipotle Mexican Grill Charts
03:29

The chart on GLD looks very bearish. But on closer examination, this could have a potential for a nice bullish run.
Case Study 4 - Gold ETF (GLD) Charts
03:00

GOOG recently won a battle with its all time high. The battle waged on for 4 or 5 months. This chart studies energy levels that a stock must attain to break down a significant barrier like an all-time high.
Case Study 5 - GOOG Charts
07:04

This is a concluding lecture, and we recap everything we learned in this course.
CONCLUSION
06:42

Technical Analysis Quiz
7 questions
About the Instructor
Hari Swaminathan
4.5 Average rating
2,971 Reviews
27,198 Students
23 Courses
Options Mentor, Financial markets educator, Trader, Investor

Knowledge. Strategy. Execution.

Hari Swaminathan is the founder of OptionTiger, a cutting-edge Options Mentoring company, and a full-circle educator in all areas of Financial Markets, Hari has developed several proprietary Intellectual Property "methods and approaches" around enhancing base case Options strategies (which favor the Market Makers) and turns that deficit into a massive EDGE on the trader's side.. Like building a powerful Strategy "for all Option Strategies". 

Hari is self-taught in Options and actively trading these instruments for almost 10 years, mostly through trial and error. Trial and error in general, is an excellent method of learning, but applied in this context, trial and error CAN BE EXPENSIVE. My courseware focuses on this aspect mostly, so you can avoid losing money in the 1 to 2 years when you're learning. Yes, it does take that long, if not more. If the markets were indeed simple, you'd have everyone involved in it. Patience, Diligence, and Determination are what you need during this time.

Hari has a Bachelors degree in Engineering from India, and MBA's from Columbia University in NYC and London Business School in London UK. 

More than ever, its become important for normal people to take charge of their financial situation, and truly understand how financial markets, and the various asset classes, trading nuances really work. Investing in the financial markets is no longer a HANDS-OFF ACTIVITY. There's no point blaming financial advisors after the fact. Now, it's become crucial for everyone to do "their OWN homework", so you can decide for yourself whether something is good or risky. This is of course easier said than done, and that's exactly where we come in.

My mission is to educate everyday people on the deep, strategic underpinnings of the stock markets, and exploit that knowledge with the use of OPTIONS.  THERE IS NOTHING RANDOM about the markets. There are surprises all the time, but there's always a method behind every madness. And my goal is to get you to this point of understanding and awareness. That's when it starts to fit in. 

Knowledge, Education, Crafting Breakthrough strategy, Technical analysis, Following Smart Money, Risk management, Disciplined Money management, and near flawless Execution approaches are just a few of the crucial points emphasized in all the Courses. Video-based education courseware, Practical workshops, several elite proprietary Advanced systems, a 4-week Live Mentoring program are just a few things we offer. The goal is to provide a "full circle" education in the Markets, which is necessary before it starts "fitting in". 

Let's break down the Options game in a realistic manner. 

The Pluses

1. Options were invented out of thin air. And the people who invented them won Nobel Prizes for their invention (Fisher and Black). It is purely a "Mathematical" concept, with no real connections to the external world except for one, that's defined implicitly in its design.. Its fascinating, mathematical, strategic, risky, but can also provide the basis for life-long income streams. There's focus on Analysis, Data science, Statistical Modeling and Probability theory.

2. This gives rise to very complex but interesting  analytical scenarios. It also gives us the ability to model Options with a set of tools like a car dashboard. In many cases, you don't need to see what's going in the Markets, or the Stocks themselves. This data is embedded in the mathematical formulas that underpin Options structure itself, and you can operate on the basis of your Dashboard.

3. Because everything in Options is defined in mathematical terms, its also important to realize that OPTIONS will always be the same. The math behind Options will always be the same. Forever. Unless they discover serious flaws in the formulas and models used by these Nobel winners. And of course, sadly, if it were the case, the Nobel prizes would have to be retracted and we go back to the drawing board again. But today, several well developed markets around the world exist purely based on their Mathematical Modeling of RISK.

4. Options and Chess have LARGE overlaps. You may agree that Chess is a game of "skill". It's a game of Strategy and depends upon how well you can plan (ahead) to attack, defend or take a neutral position. We also believe that Chess is strategy-focused and depends upon certain mathematical principles. Why or How do we know this - The reason we know its a game of skill is : Try to play 100 chess games with Kasparov or Anand. Normal people are almost guaranteed a loss in all 100 games. So it has to be a game of skill. And why do we know its underlying features are mathematics based. The fact that a computer like Deep Blue beat the GrandMaster Garry Kasparov in 1997, proved to be both shocking, and revealing at the same time. While human beings abilities have not increased in exponential terms during the last 20 years, and we may be able to plan 3 or 4 or 5 moves ahead, the computer of today can calculate a 1000 moves ahead, go down every possible path, and record the outcomes like photographic memory.  This is a capability that humans may never achieve, proving that Math plays a key role. So today, every professional Chess player refuses to play the machine, because it's almost guaranteed that the Masters WILL LOSE EVERY GAME

5. Lastly, You MUST believe this completely -  Options, just like Chess, are a "skill set", and requires acquiring a deep set of analytical skills much more so than most skill sets in the world, and THEY can only be MASTERED over a period of time. Once you understand Options better, you'll realize how true this is. We cannot turn into a Kasparov in a matter of weeks or even a few months. It does NOT work like that. But once you go through this process that can go for 1 to 2 years or more (depending upon your commitment to this process), there is a very powerful light at the end of this tunnel. You build a skill set for life.  Age, Geographical location, Lifestyles, or Weather are no longer a barrier to creating consistent income streams, regardless of who you are, where you are, or how old you are. 

This is very POWERFUL stuff. 

Now let's look at the negatives. This is what most people will NOT tell you. Anyone that tells you Options are SIMPLE, and you can make extra ordinary income easily, is JUST NOT TRUE. I will tell you Options can be brutal if you simply apply speculative methodologies. Then you should just STICK TO STOCKS, which are nothing BUT speculation, with a minute role in STRATEGY Give yourself time to master this CRAFT. And once you can develop a SYSTEMATIC approach to every situation (which is the Real Game), you'll be well on your way to consistent performance.


MINUSES


Options are easily the most fascinating financial instrument with several upside benefits, but also an equally powerful set of negatives. 

1. Options have a steep learning curve. Don't expect to become Kasparov in a couple of months. Or even a year or two. And why is this important to realize: Because we are playing a Kasparov or Anand every time we enter the Options market. Market Makers who are 99% of the time, the counter party to all Options trades, are Options professionals, with 10 to 20 years of experience, in performing their "legal duty" of providing liquidity. While we have hours to plan our attack, the Market Maker literally has a few seconds. In a normal  day, a market maker can do many thousands of trades. One can only be in awe of their skills. 

2. If you're interested in Options, try NOT approach it with a mindset or requirement of making money. This is not only NOT going to happen, but its a recipe for disaster. It's like a student of Medicine wanting to practice their skills after 2 months of study. To develop a meaningful batting average, you will need Time, Patience, and Perseverance. They don't develop overnight. Focus completely on the learning, ideally practicing on paper money accounts because you WILL LOSE at first. 

3) As someone that has self-learnt Options and through making mistakes from Trial and Error, I can tell you Options trading is not something you should take lightly. You will hear people talking of fantastic triple and quadruple digit returns. I'm here to be brutally honest with you - 

- Be very very careful in the first 12 months of Options trading. 

- This is when everyone is the most vulnerable to losing money. 

- Your main objective during this time is to focus on learning this craft and NOT lose (too much) money

Having said that, if you can get past the first 12 months and acquire the expertise in a Systematic manner with Systematic approaches to every situation, true financial independence awaits.

You can trade Options from anywhere in the world, regardless of how old you are. You never have to worry about job security any more because you have a skill that can produce consistent income month after month. 

But you have some serious but exciting work to do before you get there, and I'm here to help you in this journey. 

Watch my Free Mini-courses or my YouTube channel , all of which have the highest quality education in Options as well as Financial Markets.. 

And join me in my UDemy courses, where I share cutting-edge theoretical knowledge mixed with practical insights, strategy and impeccable execution approaches, through live trading examples. How do we know it's all this (don't just go by my word). Check what 25,000 students have to say in 2100 Reviews, with almost 2000 of them being 5-Star or 4-Star

If you have any questions at any time, please feel free to message me on Udemy.

The order to follow on my Udemy courses

Comprehensive guide to Financial Markets, Investing and Trading

Options Trading Beginners Bundle (3-course Bundle)

Advanced Options Concepts

Options spreads and credit spreads Bundle

Technical analysis and Chart reading Bundle

After this, the order does not matter. You can take any of the courses as per your interest.