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Lesson : Page

MODULE 1
1. What is Technical Analysis? 2
2. Introduction to Charts 3

3. History behind Technical Analysis 4-6

4. What technical analysis believes?
7-9
. Importance of technical analysis

5. Different Chart Types 10-12

6. Concept of Trend 13-17

7. Concept of Volume 18

8. The 4 Phases of Stock Market 19-21

I I NN DD EE XX
Lesson Page

MODULE 2
1. Concept of Support & Resistance 23-25
2. Technical Patterns
A. Head & Shoulders, Inverted
26-28
Head & Shoulders
B. Double Top & Double Bottom 28
C. Rising & Falling Wedge 29-30
D. Ascending, Descending &
30-33
Symmetrical Triangle
E. Flag Pattern 33-34
3. Gap Up & Gap Down 35-37

MODULE 3
1. Technical Indicators
A. Moving Average 39-42

B. RSI & RSI Divergence 42-44

C. Bollinger Band 44-45

D. Parabolic SAR 46-47

I I NN DD EE XX
Lesson Page

MODULE 4
1. Resistance & Support through
49-51
Fibonacci

2: Resistance & Support through

52-53
Periodic Charts
3. Technical Calculation of Price
54-55
Projection

4. Accumulation & Distribution

56-57
Redefined

MODULE 5
1. Risk Management -> Trailing
59-61
Stop

2. Stop & Reverse Stop 62-63

3. Adding & Reducing Positions 64-65

4. Technical profit booking points 66

I I NN DD EE XX
Lesson Page

MODULE 6
1. Here is a ready checklist for your
68-69
chart analysis

2. You may consider preparing a

ledger with the below parameters 70
before taking any trade. This is
applicable for any stock/index in
which you wish to trade.

MODULE 7
1. Intraday chart reading – General
72-73
Discussion

2. Retracements & Pullbacks in

74-75
intraday trading:

3. Implication of Volume on intraday

76-77
trading
4. Intraday Profit Booking 78
5. Intraday Stop Loss 79
I I NN DD EE XX
Lesson Page

MODULE 8
What is TradingView? 81

1. Introduction to TradingView 82-90

2. Chart Drawing in TradingView 91-104

3. Indicators 105-116
4. Fibonacci Retracement 117-119
 Lesson :
1. What is Technical Analysis?

2. Introduction to Charts

3. History behind Technical Analysis

4. What technical analysis believes?

. Importance of technical analysis

5. Different Chart Types

6. Concept of Trend

7. Concept of Volume

8. The 4 Phases of Stock Market

 Module 1

Lesson 1: What is Technical Analysis?

Technical analysis is a study, a method or a tool for predicting

the future prices of securities by looking at things like price
movement, charts, trends, trading volume and other factors.

Technical analysis is a means of examining and predicting

price movements in the financial markets, based on an asset's
chart history. It concentrates on forecasting the direction of
prices through the study of past market data primarily price
and volume.

There are essentially two methods of analyzing investment

opportunities in the securities market, one is fundamental
analysis and the other being technical analysis. While
fundamental analysis focuses on the security’s true value
based on things like the company’s financial statements,
overall economy, market conditions and other factors like
liabilities and assets, technical analysis is based purely on
price charts of the security.

Page-2
 Module 1

Lesson 2: Introduction to Charts:

Charts are graphical presentations of price information of

securities over time. Charts plot data based on the
combination of price, volume as well as time intervals. The
use of charts is so frequent that a Technical Analyst is often
referred to as a Chartist.

The main types of charts used by technical analysts are line

chart, bar chart, candlestick chart etc. These three charts are
the most popular and widely used among all chart types.

Page-3
 Module 1

Lesson 3: History behind Technical Analysis:

Traders nowadays take their buying and selling decisions on

the basis of technical analysis results appearing on their
screen. Going back to history, technical analysis derives from
the observation of financial markets over hundreds of years.

The oldest known hints of technical

analysis appear in Amsterdam based
merchant, Joseph de la Vega’s
accounts of the Dutch financial markets
in the 17th century.
Joseph de la Vega
1650-1692

In Asia, the oldest example of

technical analysis is thought to
be a method developed by
Homma Munehisa during the
early 18th century. He was a
wealthy rice merchant and
trader from Sakata, Japan. The
reason he is credited as the
pioneer of technical analysis is Homma Munehisa
that he invented Candlestick charting which is the backbone of
technical analysis till date.

Page-4
 Module 1

The history of technical analysis in the

United States began quite some time later
in the late 19th / early 20th century. The
work deserving the most credit came from
Dow Jones' co-founder and editor Charles
Dow, who was the pioneer of the Dow
Theory. He is considered as the “father of
modern technical analysis”.
Charles Dow

Ralph Nelson Elliott, an American

accountant and author who
developed The Elliott Wave Theory
in the 1930s. In this theory Elliott
describes price movements in
financial markets, in which he
observed and identified recurring,
fractal wave patterns.
Ralph Nelson Elliott

William Delbert Gann or WD Gann

was a finance trader who developed
the technical analysis methods like
Gann Angles and the Master Charts.
He is perhaps the most mysterious of
all famous traders in history, known
for using geometry, astrology and
ancient mathematics to predict
events in the financial market and
William Delbert Gann historical events.

Page-5
 Module 1

Other pioneers of analysis techniques include Alexander

Wilder and Richard Wyckoff who developed their respective

Alexander Wilder Richard Wyckoff

techniques in the early 20th century. Many more technical

tools and theories have been developed and enhanced in the
recent decades with an interesting emphasis on computer
assisted techniques.

Page-6
 Module 1

Lesson 4: What technical analysis believes

and its Importance?

The purpose of technical analysis is to help the

trader/investor make a more financially sound
trading/investment decision. The price is the key to success in
stock market investment. The supply and demand of stocks
depend upon technical analysis.

Not just for stocks:

Technical analysis has universal applicability. It can be applied
to any financial instrument – stocks, futures and commodities,
fixed income, securities, forex etc.

Focus on price:
Fundamental developments are followed by price movements.
By focusing only on price action, technicians focus on the
future. Looking directly at the price movement helps to track
the market. Price movement is considered as the leading
indicator and generally indicates the economy. Even though
the market shows unexpected reactions, hints usually develop
before significant movements.

Page-7
 Module 1

Supply, demand and price action:

Analysts make use of open, high, low and closing prices to
analyze the price action of a particular stock. Even if these fail
to tell much separately, however, if taken together the open,
high, low and close reflect forces of supply and demand.

Support and resistance:

By performing technical analysis on stock charts, technicians
are able to determine support and resistance levels. These are
trading range in which the price moves for an extended period
of time saying, that forces of demand and supply are
deadlocked. When the price moves out of the trading range, it
signals that either demand or supply has reached the upper
band. If price moves above the upper band of the trading
range then demand is winning. If price is below the lower band,
then supply is winning.

Pictorial price history:

Price chart offers most valuable information that facilitates
reading historical account of a security’s price movement over
a period of time. Charts are much easier to read than a table
of numbers. With this historical picture it is easy to identify the
following:

Page-8
 Module 1

Market reactions before and after important events

Past and present volatility

Historical volume or trading levels

Relative strength of the stock versus the index

Help time entry point:

Another benefit of technical analysis is that it helps the
trader/investor to determine the correct entry points. With the
help of technical analysis, technicians know exactly when to
time their action. They are also able to understand demand
and supply levels and breakout to make better decisions.
Checking out for a breakout above resistance or buying near
support level can improve returns.

Easily spot trends:

If the trader/investor wants to trade/invest in a stock, then he
should be fully aware of the current market trends. By
conducting technical analysis he will be able to learn short
term and long term trends which will help him to take
investment decisions properly.

Page-9
 Module 1

Lesson 5: Different Chart Types:

1. Bar Charts:
One of the basic tools of technical analysis is bar chart. Bar
charts consist of a series of bars. Bar chart is also referred to
as open-high-low-close (OHLC) charts.

The opening price is the horizontal dash on the left side of the
vertical line and the closing price is located on the right side
of the line. If opening price is lower than closing price then it
represents a rising period. The opposite is true for a falling
period.

Page-10
 Module 1

2. Line Charts: 

Line Charts are the most basic form of charts. They are
created by connecting the closing prices of a stock over a
given period of time. Generally, only the closing price is
graphed presented by a single point. This is a very popular
type of chart used in presentations and reports to give a very
general view about the historical and current directions.

However, line charts do not provide much information about

potential levels of supply and demand since they ignore high
and low prices which are the true indicators of market forces.

Page-11
 Module 1

3. Candlestick Charts:

The concept of candlestick chart came from Japan. These

charts are the most versatile and popular forms of chart
representation. Price behavior during each time unit is
represented by the form of a candle.

If the closing price is higher

than the opening price during a
particular time period, then the
candle is white. If the closing
price is lower than the opening
price then the candle is black.
Each chart has a body and two
wicks. The distance between the open and close is
represented by a body and the upper and lower wicks
represent the high and the low of a candle.

Page-12
 Module 1

Lesson 6: Concept of Trend:

In technical analysis when we refer to ‘trend’, it means the

directional movement. Trend is the direction in which the
prices are moving, based on where they had been in the past.
When price moves in a direction, it is called trending and there
is an imbalance between demand and supply.

A rising trend is called an up-trend, when the price makes

higher peaks and higher troughs (higher highs and higher
lows). Here the buyers are always more than the sellers.

A declining trend is called a downtrend, when the price makes

lower peaks and lower trough (lower highs and lower lows).
Here the sellers are more than the buyers.

Page-13
 Module 1

A sideways trend is called a flat trend, where prices move

sideways in a horizontal range.

In addition to these three basic trends, there are many

different classification of trends based on time span.

Page-14
 Module 1

1. Secular / Long-term Trend:

Secular is a descriptive word used to refer to market activities
that occur over the long term. A secular trend lasts for 5-25
years and consists of a series of primary trends. A secular
trend is likely to move in the same direction over a longer
term. It can be either positive or negative in this direction. A
secular bear market consists of smaller bull markets and
larger bear markets, and the prevailing trend is bearish or
downward moving. A secular bull market consists of larger bull
markets and smaller bear markets and the prevailing trend is
bullish or upward moving.

2. Primary / Major Trend:

The first and the most important is the primary trend. The
primary trend is generally longer than the other three main
trends. It lasts for 1 year or longer. The primary uptrend is  

Page-15
 Module 1

known as a Bull trend and the primary downtrend is known as

a Bear trend. The most important factor for investors is to
determine the primary trend correctly. The primary trend can
be examined on weekly and monthly charts and represents
the overall long-term movements of prices.

3. Secondary / Intermediate Trend:

A primary trend is interrupted by several counter cyclical

trends that are known as intermediate trends. In a bull trend, a
decline will be an intermediate downtrend and in a primary
bear trend, an advance will be an intermediate uptrend. These
trends usually last for 1 to 3 months. These can be easily
examined within the daily charts.

4. Short- term / Minor Trend:

A short- term trend usually lasts for less than 1 month. These
are the interruptions between the intermediate trends just as
the intermediate trend interrupts the primary trend. Short-term
trends are difficult to identify than intermediate and primary
trends. Short-term traders deal with smaller movements in
price but they know and move in the direction of intermediate
trend.

Page-16
 Module 1

TREND LINE:

One way for an analyst to see a trend is by drawing what is

called the trend line. A trend line is a straight line that
connects 2 or more price points and then extends it to the
future to act as a line of support or resistance. If a trend line is
sloping up, then it is an uptrend, if it is sloping down, then it is
a downtrend and in a sideways trend you will get a horizontal
trend line.

Page-17
 Module 1

Lesson 7: Concept of Volume:

Volume is determined as the total number of buyers and

sellers exchanging shares over a period of time, usually a day.
The higher the volume in any particular move, the greater is
the conviction in that move to continue a greater distance in
that direction. However, if the volume is on the lower side
during a move, the stock is generally bound to lose its
momentum.

When we analyze volume there are some guidelines which we

can use to determine the weakness and strength of a move.
These guidelines may not be true in all the situations but they
help to make trading decisions.

Volume Bars

Page-18
 Module 1

Lesson 8: The 4 Phases of Stock Market:

From changing seasons to different stages of our lives, cycles

exist all around us. Cycles and stages are also present in the
movement of stocks, and understanding their dynamics can
help a trader/investor to identify potential trading and
investment opportunities.

The movement of prices in the stock market may seem

random and hard to understand. Prices may go up on a
certain day and down on the other. In reality, the stock market
cycle moves in a similar way and goes through similar phases.
The trader can understand each phase and change their style
of trading accordingly. There are four phases in the stock
market cycle which are as follows:

Stage 1: Accumulation
This is the first stage of the cycle and can be found in
individual stocks, sectors or in the market as a whole. The
stock tends to trend at a range as traders accumulate their
shares before the market breaks out. It is also known as the
basing period because the accumulation phase comes after a
downward trend but precedes an uptrend.

The accumulation phase may last for a few weeks or even a

few months. The price range during this time is small and not
particularly advantageous for day traders. On the other hand,
this is where long term investors might be able to position
themselves to realize the greatest gains.

Page-19
 Module 1

Stage 2: Mark-up

Just as the accumulation phase is defined by its resistance to

changes in stock prices, the mark-up phase is defined by the
price going above this resistance level. The break out of the
accumulation phase results in a high volume of shares as the
traders who remained silent during the accumulation phase
aggressively purchase stocks.

This is the best time for traders to make money. There is a lot
of upward movement of prices which is great for momentum
traders. Any downward movement during this time is not
considered as a bad thing but rather an opportunity to buy
shares.

Stage 3: Distribution

This is the toping stage for a sector, stock or market in

general. This phase is also known as reversal stage as the
traders who purchased stocks during accumulation phase
begin to exit the market.

One way to identify this stage is through chart patterns such

as head-and-shoulders, double top etc. As the phase
progresses, the market starts to lose its volatility as a range
begins to form. This is not the best situation for momentum
traders.

Page-20
 Module 1

Stage 4: Decline or Mark down

This is the final stage of the cycle and the one that many
investors want to avoid. At this point, the buyers who took
position in the stock during the distribution phase hastily tries
to sell as they are underwater on their positions. However
there are a few buyers to meet the sale of shares. This lack of
demand drives down the price of stocks. It is important not to
panic and sell during this phase as these phases don’t last
forever.

Page-21
 Lesson :
1. Concept of Support & Resistance
2. Technical Patterns
A. Head & Shoulders, Inverted
Head & Shoulders
B. Double Top & Double Bottom
C. Rising & Falling Wedge

D. Ascending, Descending &

Symmetrical Triangle
E. Flag Pattern

3. Gap Up & Gap Down

 Module 2

Lesson 1: Concept of Support & Resistance:

Concept of Support & Resistance

Support and resistance levels are important points in time

where supply and demand meets. This is the concept of
technical analysis that says that the price of a stock tends to
stop and move in the different direction when it hits certain
pre-determined price points.

Support level:

Support level is the level at which the price of a stock does not
fall any further. The price is most likely to bounce back and
move in opposite direction. This is the level where the demand
from buyer is expected to be much higher than that of sellers.

Page-23
 Module 2

Resistance level:

A resistance level is the opposite of support level. It is a price

point at which stock price is not expected to rise any higher.
This is a price point where there are more sellers than buyers
in the market for a particular stock.

Trend lines are often referred to as support and resistance

lines on an angle.

Support and Resistance Role Reversal:

The support and resistance level gives the trader an idea

about the price movements of a stock. However, it is entirely
possible that if the support and resistance level breaks then
the roles are reversed.

If the price falls below a support level, then that level will
become resistance. If the price rises above the resistance level,
it will become a support level. As price moves past a level of
support and resistance, it is thought that supply and demand
has shifted, causing the breached level to reverse its role.

Page-24
 Module 2

Why are support and resistance line important?

Technical Analysts often say that the market has a memory.

Support and resistance lines are the key components of that
memory. Investors tend to remember the previous price levels
and try to determine the future price movements accordingly
which makes it an important aspect of technical analysis. It is
not possible to accurately find out the next price high or low
on a consistent basis.

As a result the concept of support and resistance level ensures

a fairly good understanding of price movement. Support and
resistance level help traders to identify trend and make
trading decisions.

Page-25
 Module 2

Lesson 2: Technical Patterns:

Chart pattern analysis is probably one of the most popular

forms of technical analysis. Chart patterns help to identify
market tops and bottoms as well as trend continuation. Chart
pattern also indicates the minimum price movement expected
once the pattern is completed.

Types of Patterns:

A. HEAD & SHOULDERS, INVERTED HEAD & SHOULDERS

Head and Shoulders:

Head and shoulder is a ‘reversal pattern’ in which the price
trend changes either from bearish to bullish or bullish to
bearish and takes a shape that looks like a human head with
shoulders on either side.

This pattern is formed by three consecutive tops with the

middle one being higher than the other two. The middle top is
called the head and the two side peaks are called the
shoulders. On joining the intermediate troughs, we get the
neck-line. A breaking of this neck-line on a decline from the
right shoulder is the final confirmation and completes the head
and shoulder formation. Ideally, this should occur in a
convincing manner with an expansion in volume.

Volume is a very important factor to look at while studying this

pattern. The volume is the highest and often expands in the
left

Page-26
 Module 2

shoulder as the uptrend continues and more and more

investors want to get in, whereas it is the lowest on the right
shoulder as investors sense a trend reversal. This low volume
is often considered as a strong sign of reversal. In the head
portion of the pattern, volume lies somewhere between that
on the left shoulder and the right shoulder.

It is important to remember that it occurs after an uptrend

and usually marks a major trend reversal when complete.

Inverted Head and Shoulders:

An inverse head and shoulder is similar to a standard head

and shoulder pattern but inverted. It is also known as head
and shoulder bottom with the head and shoulder top used to
predict reversals in downtrend. Head and shoulder bottom or
inverse has three low peak price points created by a falling
stock.

Page-27
 Module 2

B. DOUBLE TOP & DOUBLE BOTTOM:

Double tops and bottom are important technical analysis
patterns used by the traders. A double top is a bearish
reversal pattern whereas a double bottom is a bullish reversal
pattern.  Both, the double top and the double bottoms, can tell
traders about the possible trend reversal. However, in both the
cases the reversal is not confirmed until the prevailing trend
has formed the second peak or second low before reversing in
an opposing direction to the trend before the first peak or first
low. These patterns are often used to signal intermediate and
long-term trend reversal.

Higher Volume

Page-28
 Module 2

C. RISING & FALLING WEDGE

Wedge:

When trading, it is always helpful to understand how patterns

tend to play out. This is especially true with wedge pattern.
Wedges signal pause in a current trend. When you encounter
this formation, it indicates that traders are still deciding where
to go next.

The wedge pattern can be either a continuation or a reversal

pattern.

Rising and Falling Wedge:

A rising wedge is formed when price consolidates between

upward sloping support and resistance. Here, the slope of the
support is steeper than that of the resistance. This indicates
that higher lows are being formed faster than higher highs,
leading to a wedge like formation.

A rising wedge formed after an uptrend usually leads to a

reversal in downtrend while a rising wedge formed during a
downtrend typically leads to a continuation in downtrend. A
rising wedge leads to a downtrend, which means that it’s a
bearish chart pattern.

Just like a rising wedge, the falling wedge can be either a

continuous or a reversal signal.

As a continuous signal, falling wedge forms during an uptrend

and implies that upward price action will resume. As a reversal

Page-29
 Module 2

signal, this pattern forms at the bottom of a downtrend

indicating that an uptrend will come next. Unlike the rising
wedge, the falling wedge is a bullish chart pattern.

D. ASCENDING, DESCENDING & SYMMETRICAL TRIANGLE

Triangle:
Triangle patterns are commonly used in technical analysis
tools. It is important for every trader to recognize patterns as
they form in the market. Triangle patterns are important
because they help to indicate continuation of a bullish or
bearish market. They can also assist a trader in spotting a
market reversal. There are three types of triangle patterns:
ascending, descending and symmetrical. These technical
patterns are considered to last anywhere from a couple of
weeks to several months.

Page-30
 Module 2

Ascending Triangle:
Ascending triangles are a bullish formations that project an
upside breakout. An ascending triangle occurs when the lower
trend line is rising while the upper trend line is horizontal. Price
is contained by a horizontal trend line acting as resistance and
an ascending trend line acting as support. Price is already an
overall uptrend and the ascending triangle pattern is viewed
as a continuous process.

Descending Triangle:
Descending triangles are bearish formation that projects a
downside breakout. A descending triangle is formed when the
upper trend line is slopped downward, while the bottom trend
line is horizontal. Price is contained by a horizontal trend line
acting as a support and a downward trend line acting as a
resistance i.e. vice versa to ascending triangle formation. The
descending triangle is an upside-down image of the ascending
triangle.

Page-31
 Module 2

Symmetrical Triangle:

The symmetrical triangle is formed during a trend as a

continuous pattern. This pattern contains at least two lower
highs and two higher lows. This type of triangle can give
breakouts in both directions depending on their existing trend
where price action grows increasingly narrow, maybe followed
by a breakout to either side, up or down.

Symmetrical triangle is created when both trend lines are

converging each other. They indicate a period of congestion,
represented by a falling resistance trend line or rising support
trend line with a horizontal support or resistance lines.

Page-32
 Module 2

E. FLAG PATTERN:

Flag pattern is one of the most popular chart patterns, formed

by price action which is contained within a small rectangle or a
channel in the shape of a flag. Flags are short-term
continuation patterns that mark a small consolidation before
the previous move resumes.

A flag chart pattern is formed when the market consolidates

in a narrow range after a sharp move. Usually a breakout
from the flag is in the form of a continuation of the prior
trend. The flag pattern can be a bullish or bearish pattern.
These patterns are generally thought to last from one to three
weeks. Flag is formed when there is a minor profit booking in
either uptrend or downtrend.

Page-33
 Module 2

Page-34
 Module 2

Lesson 3: Gap Up & Gap Down:

Gaps in stock market trading appear when there is a sharp

rise or fall in the price of the stock and when there is no
occurrence of the trading activity. To be precise, a gap is
essentially a change in price levels between the close and the
open of two consecutive days.

DIFFERENT TYPE OF GAPS:

Common GAP:

A common gap tends to be a partial gap and occurs on a

frequent basis due to normal trading activity.  Common gaps
are sometimes referred to as trading gap or an area gap. This
gap is usually uneventful. These gaps are common and usually
get filled quickly.

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 Module 2

Breakway GAP:

The breakaway gap occurs when prices breakout from trading

range in the area of prices with an established support and
resistance line and begin a new trend. These gaps are the
exciting ones. Breakaway gaps may also occur in other types
of charts such as triangle, wedge, head and shoulder patterns.

Runway GAP:

Runway gap is best described as a gap caused by increased

interest in the stock. The runway gap occurs in an already
existing trend and suggests a future continuation of that
trend. A good uptrend can have runway gaps caused by
significant news events that cause new interest in the stock.

Page-36
 Module 2

Exhaustion GAP:
Exhaustion gaps are those that happen near the end of a
good uptrend and downtrend. They are often the first signal
of the end of the move. The principle of exhaustion gap is that
a number of buyers and sellers have aggressively stepped in
to the market. They are often mistaken as runway gaps if one
does not notice the exceptionally high volume.

Page-37
 Lesson :

1. Technical Indicators
A. Moving Average

B. RSI & RSI Divergence

C. Bollinger Band

D. Parabolic SAR
 Module 3

Lesson 1: Technical Indicators:

A. Moving Average :

Most chart patterns show a lot of variations in chart pattern.

This can make it difficult for traders to get an idea of a
security’s overall trend. One simple method traders use to
combat this is to apply a moving average. A moving average
is the average price of a security over a set period of time. By
plotting a security’s moving average price, the price
movement is smoothened out. The most common way of
interpreting the price moving average is to compare its
dynamic to the price action. When the instrument price rises
above its moving average, a buy signal appears, if the price
falls below its moving average, what we have is a sell signal.

The two most common types of moving averages are the

Simple Moving Average (SMA) and the Exponential Moving
Average (EMA). The difference between the two is noticeable
when comparing long-term averages.

Simple Moving Average (SMA): This is the most common

method used to calculate the moving average of prices. It
simply takes the sum of all of the past closing prices over a
time period and divides the result by the number of prices
used in the calculation. For example, in a 10-day moving
average, the last 10 closing prices are added together and
then divided by 10.

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 Module 3

Exponential Moving Average (EMA): EMA is calculated by

adding a certain share of the current closing price to the
previous value of the moving averages. With exponential
moving averages the latest close price are of more value.
EMAs differ from simple moving averages in a way that a
given day’s EMA calculation depends on the EMA calculations
of all the days prior to that day. You need far more than 10
days of data to calculate reasonably accurate 10-day EMA.

30 day EMA

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 Module 3

Major uses of Moving Averages:

Moving averages are used to identify current trend and trend

reversal as well as to set up support and resistance levels.
Moving averages can also be used to quickly identify whether
a security is moving in an uptrend or a downtrend depending
on the direction of the moving average.

Moving average trend reversals are formed in two main ways:

when the price moves through a moving average and when it
moves through moving average crossover. The first common
signal is when the price moves through an important moving
average. The other signal of trend reversal is when one
moving average crosses through other.

Moving averages are a very powerful tool for analyzing the

trend in a security. They provide useful support and resistance
points and are very easy to use. The most common time
frames that are used when creating a moving averages are 

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 Module 3

use the 200-day average which is thought to be a good

measure of a trading year, 100-day average of a half of a
year, a 50-day average of a quarter of a year, a 20-day
average of a month and 10-day average of two weeks.

Moving averages help technical traders smooth out some of

the noise that is found in day-to-day price movements, giving
traders a clearer view of the price trend.

B. Relative Strength Index (RSI) :

The relative strength index (RSI) is a popular oscillator used by

traders. The indicators constructed by applying a range are
called oscillators. RSI helps to signal overbought and oversold
conditions in a security. The indicator is plotted in a range
between 0 to 100. A reading above 70 is used to suggest that
the security is overbought, while a reading below 30 is used to
suggest that it is oversold. This indicator helps traders to
identify
whether a security’s price has been unreasonably pushed to
current levels and whether a reversal may be on the way.

The RSI is a fairly simple formula i.e.

RSI= 100-{100/ [1+(U/D)]}
Where, U = an average of upward price change
D = an average of downward price change

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 Module 3

RSI Divergences:
With the RSI divergence, the relative strength index of a
specific stock shows lower highs when the price uptrend hits
higher highs. Conversely, when the price is trending downward,
it will hit lower lows with divergence while the RSI hits higher
lows. While both indicators are either traveling upward or
downward simultaneously, the RSI is beginning to diverge
from the stock price.

Divergence indicates whether the current price trend is

flagging, which provides insight into whether it’s the time to
make a move to buy or sell that particular stock.

RSI can be calculated for any number of days depending upon

the need of the technical analysts. In fact, it can be said that
the greater the time period, the lower will be the volume of
wrong signals. Daily RSI can be calculated by taking daily
closing

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 Module 3

price, for weekly computation weekly data has to be taken

and for monthly calculation the data should be on a monthly
basis.

C. Bollinger Band:

John Bollinger, the creator of the Bollinger Band, defines the

Bollinger Band as "a technical analysis tool, they are a type
of trading band or envelope".  The bands are often used to
determine overbought and oversold conditions.  When the
market is quiet, the band contracts and when the market is
loud, the band expands.

When the price is quiet, the bands are close together and
when the price moves up, the bands spread apart.

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 Module 3

The most basic Bollinger bands' interpretation is that the

channels represent a measure of ‘highness’ and ‘lowness’.
Let’s sum up the three key points about Bollinger bands:

1. The upper band shows a level that is statistically high or

expensive.
2. The lower band shows a level that is statistically low or
cheap.
3. The Bollinger bandwidth correlates to the volatility of the
market

This is because the standard deviation increases as the price

range widens and decreases in narrow trading ranges.

Therefore,

In a more volatile market, Bollinger bands widen

In a less volatile market, the band is narrow

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 Module 3

D. Parabolic SAR :

The Parabolic SAR is a technical indicator developed by J.

Welles Wilder to determine the direction in which an asset is
moving. The indicator is also referred to as stop and reverse
system, which is the abbreviation of SAR. It aims to identify
potential reversals in price movement of traded assets. It can
also be used to provide entry and exit points.

When graphically plotted on a chart, the Parabolic SAR

indicator is displayed as a series of dots. If it appears below
the current price, the Parabolic SAR is interpreted as a bullish
signal. When it is positioned above the current price, it is
deemed to be a bearish signal. The signals are used to set
stop losses and profit targets.

How Parabolic SAR works:

The Parabolic SAR is usually represented in the chart of an

asset as a set of dots that are placed near the price bars.
Generally, when these dots are located above the price it
signals a downward trend and it is deemed to be a sell
signal. When the dots move below the price, it shows that
the trend of an asset is upward and signals a buy.

The change in the direction of dots produces trade signals,

which can produce a profit when the price makes a big
swing. However, if the price moves sideways, it can
produce continuous losses or small profits, especially in an
unsteady market.

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 Module 3

The Parabolic SAR performs the best in markets with

steady trends. In ranging markets, the Parabolic SAR tends
to generate false trading signals.

Parabolic SAR

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 Lesson :

1. Resistance & Support through

Fibonacci

2: Resistance & Support through

Periodic Charts

3. Technical Calculation of Price

Projection

4. Accumulation & Distribution

Redefined
 Module 4

Lesson 1: Resistance & Support through

Fibonacci :

Fibonacci analysis is the study of identifying potential support

and resistance levels in the future based on past price trends
and reversals. In the 12th century, Leonardo Pisano Bigollo, an
Italian mathematician who is known to his friend as Fibonacci
discovered Fibonacci numbers. It is a popular tool that
technical traders use to identify price levels for transaction,
stop losses or target prices.

Fibonacci Retracement:

The Fibonacci retracement tool plots percentage retracement

lines based upon the mathematical relationship within the
Fibonacci sequence. These retracement levels provide support
and resistance levels that can be used to target price
objectives.

Fibonacci Retracement may be defined as the ratios used to

identify potential reversal levels, and the most popular
Fibonacci Retracements are 61.8% and 38.2% respectively. The
indicator is useful because it can be drawn between any two
significant price points, such as a high and a low. The indicator
will then create the levels between those two points.  The most
commonly used ratios include 23.6%, 38.2%, 50%, 61.8%, and
78.6%.

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 Module 4

Fibonacci numbers are a sequence of numbers in which each

successive number is the sum of the two previous numbers: 1,
1, 2, 3, 5, 8, 13, 21, 34, 55, and 89, 144 and so on.

During the primary trend, Fibonacci requires one to measure

each pullback of the security. If one sees series of new highs
with retracement of 50 percent or less, the stock is in a strong
uptrend. If one sees retracement of 61.8 percent, 71.8 percent
or 100 percent, the stock is most likely in a basing phase
before the next move.

How Fibonacci Retracement Works :

1. The percentage retracements identify possible support or

resistance areas, 23.6%, 38.2%, 50%, 61.8%, 100%. Applying
these percentages to the difference between the high and
the low price for the period selected, creates a set of price
objectives.

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 Module 4

2. Depending on the direction of market, up or down, price

will often retrace a significant portion of previous trend
before resuming the move in the original direction.

3. These countertrend moves tend to fall into certain

parameters, which are often the Fibonacci Retracement
levels.

4. Fibonacci Retracement levels are most frequently used to

provide potential areas of interest. If a traders want to
buy, they watch for the price to stall at a Fibonacci level
and then bounce off that level before buying.

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 Module 4

Lesson 2: Resistance & Support through

Periodic Charts :

When looking at any chart, we can use various time frames

like daily, weekly, monthly, quarterly as well as yearly. If we
consider the monthly chart of any stock, as a trader one
should always keep a note of the monthly highs and lows.
These monthly highs and lows will act as major support and
resistance points. Unless the stock is able to cross the monthly
high/low, it will be difficult for the stock to trade beyond that
high or low. A similar exercise is to be followed in case of a
quarterly chart. In a quarterly chart the support and
resistances will act as major support and resistance points as
compared to a daily or monthly chart.

Monthly chart

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 Module 4

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 Module 4

Lesson 3: Technical Calculation of Price

Projection :

In order to figure out the price projection of a stock we will

take an example. The important point to note here is that the
stock should follow a particular trend. Let us consider the price
of Reliance share. In order to predict the price we will take a
daily line chart of Reliance Industries and try to figure out the
initial support and resistance areas (refer to the diagram
below where the initial support and resistance areas are
mentioned). Based on the initial support and resistance points
we will determine the width of the support-resistance
(projection) and then on the basis of that width we will go on
predicting the next level of projection. This prediction will be
done until the 7th phase after which there could be a
Termination Zone. It should be noted that the midpoint of
these projections acts as additional support and resistance
areas. We have also shown the chart of Bajaj Finance below
where we have tried to figure out the possible projections.

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 Module 4

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 Module 4

Lesson 4: Accumulation & Distribution

Redefined :

The Accumulation Phase :

The accumulation phase is a stage of consolidation. There is

no clear trend and the stock is usually trading in a range. The
price moves in the accumulation phase are slow. It is also
referred to as ‘basing’ period. It begins after the completion of
a downtrend where the sellers have started to let up and short
sellers have started to take their profits.

The accumulation phase is a period of consolidation following

a downtrend but it precedes an uptrend. It will take some time
to work out all of the sellers in the market. This phase can also
take weeks and months to complete. During this period there
is a contraction of price range and no real edge for day
traders. The longer the period of consolidation and basing, the
more likely that the market bottom is in, and it is certain that
the accumulation phase is about to end. Once this
accumulation phase is broken, you begin to see highs and lows
in the market as we move on to the run-up phase of the
market.

The Distribution Phase :

The distribution phase is primarily a consolidation phase. This

phase also known as reversal stage is when the traders who

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 Module 4

purchased stocks during the accumulation phase begin to exit

the market. This phase is usually a low-volume, low-volatility,
range-bound period with neither bull nor bear in control. The
market is usually bullish but the demand does not exceed the
supply of shares enough to make the market trend
downtrend. There are usually hard sell offs but not enough to
make the market trend downtrend.

A lot of volatility comes into the market as the sellers race to

exit as everyone realizes the uptrend is over. There is a good
shorting opportunity during this period when the market is
pulling back; as it reaches the bottom it will bounce back with
velocity. The distribution phase is identified through certain
chart patterns like the head-and-shoulders pattern. As the
phase progresses the market starts to lose its volatility as a
range begins to form. This is not the best situation for
momentum traders.

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 Lesson :

1. Risk Management -> Trailing

Stop

2. Stop & Reverse Stop

3. Adding & Reducing Positions

4. Technical profit booking points

 Module 5

Lesson 1: Risk Management -> Trailing Stop:

Risk management is one of the key concepts for long term

success in the financial market. Many traders see trading as
an opportunity to make money but the potential for loss is
often overlooked. By implementing risk management
strategy, a trader will be able to limit the negative effect on a
losing trade when the market moves in the opposite direction.

How to manage risk in trading :

1. Determining the risk:

Risk is inherited in every trade which is why it is essential to

determine your risk before entering a trade. A lot of
traders follow the 1% rule. It suggests that you should not
risk more than 1% of your trading capital into a single
trade. For example, if you have Rs. 1,00,000 in your trading
account you should not risk more than 1% of Rs. 1,00,000
which is Rs. 1,000 in a single trade. Planning your risk will
help you maintain consistency with every trade and help
you stay in the market.

2.Controlling your emotions:

Once a trader makes a few winning trades, emotions like

greed, fear or excitement can stop him from sticking to his

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 Module 5

plan and bringing about potentially negative results. As a

general rule, it is considered a good practice to let your
profit run and cut losses early. Keeping your emotions in
check and sticking to your trading plan can help with this.

3.Money management:

It’s a crucial part of your strategy that specifies the size of

your position; the amount of leverages used and any stop
losses and take profit levels. Good money management is
a vital part of trading successfully in the long term. It helps
to maximize profits while minimizing any losses. It also
prevents you from taking any more risk.

4.Managing Risk:

Even the best traders suffer from losses at some point. It’s
the part and parcel of trading. The key is to limit your
losses in a more manageable manner. Risk reward
suggests that risk management works in terms of reducing
positions. This way you will be able to stay in the market
for longer, increasing your chances of having more
successful trades.

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 Module 5

Trailing Stop:

A Trailing stop is a type of stop-loss order which combines

both risk management as well as trade management.  Trailing
stops are also referred to as profit protecting stops as they
help us to lock in profits on our trades. They can be set up
automatically by most brokers/ software or can be manually
implemented by the trader.

A trailing stop is firstly placed in the same technique as

regular stop-loss order. The main difference is that trailing
stop moves in the direction as the price moves. Trailing stop
moves in direction of trade, so if you buy position and it moves
up 5 points, then the stop-loss will also move up to 5 points.
But if the price starts falling then the stop-loss does not move.
Moving Average is one of the technical indicators which can
help in placing trailing stop.

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 Module
Module5 5

Lesson 2: Stop & Reverse Stop:

A stop and reverse is a type of stop-loss order. Stop and

reverse order combines both trade management and risk
management and they are used in place of regular stop-loss
order when possible. The purpose of stop-loss order is to let
traders enter and exit a trade automatically when the price
hits a certain level. It helps to limit the risk of price fall when
traders are unaware of it.

Stop and reverse orders are an extension of stop-loss order.

They are used when a trader wants to quickly reverse his
position.

For instance if a trader is in a long trade which went against

him and hit the stop, he would want to now enter into a short
trade at the same price. In such a situation, he should use the
stop and reverse order.

Stop and reverse orders are used by chartists for managing

their risk in trading. 

This order is basically used by a combination of indicators and

techniques.

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 Module 5

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 Module 5

Lesson 3: Adding & Reducing Positions:

A well known strategy popularly referred to as the “Pyramid

Trading Strategy” is a strategy that involves scaling into
winning position. In other words, strategically buying or selling
in order to add to an existing position after the market makes
an extended move in the intended direction.

The basic concept of pyramiding is that you add to the

existing position as the market moves in your favor. Your stop
loss move up or down depending on the trade direction to lock
in profit as you add contracts. This is how you maintain your
risk management while increasing your position size in the
market.

Thus as you add a contract the potential profit to trade

increases exponentially while initial risk remains constant. The
traders then hope in pyramided position that the market won’t
snap back and stop them before it falls or rises further in our
favor.

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 Module 5

Here are a few tips to keep in mind while using pyramid

trading strategy:

1. Only use pyramid strategy in strong trading markets.

2. Always define your support and resistance level before
the trade.
3. Trail your stop loss behind each new position in order
to reduce your exposure.
4. Know your exit plan and maintain a proper risk to
reward ratio at all times.
5. Keep things simple by using same position for each
block of buying and selling.

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 Module 5

Lesson 4: Technical profit booking points:

Within this course we have already discussed several profit

booking areas. Profit booking is when an individual liquidates
his holding to cash out the profits that he has created. Here we
list out the technical profit booking points which as a trader
one should always keep in mind.

One of the most important profit booking areas would be

through the use of the moving average indicator.

RSI & RSI Divergence also act as another technical profit

booking point.
   
Profit Booking based on the Classical Trading Theory:
Based on the Classical Trading Theory, if the current
market price of a particular stock is trading 20% less than
the highest price, as a trader/investor, one should
technically book the profits.

Other indicators like the head & shoulders, multiple tops

etc. can also be considered in determining the technical
profit booking points.

By following these technical profit booking areas, as a trader

one should be able to build up his trading capital.

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 Lesson :

1. Here is a ready checklist for your

chart analysis

2. You may consider preparing a

ledger with the below parameters
before taking any trade. This is
applicable for any stock/index in
which you wish to trade.
 Module 6

Lesson 1: Here is a ready checklist for your

chart analysis:

Step 1: Take a simple bar chart.

Keep the RSI indicator open on

Step 2:
the chart.

Use the moving average indicator

Step 3: as a buying or selling
confirmation.

May also use a double moving

average (let’s say a 13 DMA and a
Step 4:
30 DMA) to determine any Golden
Crossovers.

When you are able to determine

the direction of your trade, place
Step 5:
a stop loss based on the moving
average.

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 Module 6

Keep a close watch on the RSI

Step 6: indicator and book profits
whenever there is a divergence.

As a technician, always trail your

stop loss when the trade is in Step 7:
your favor.

Always take half/full profits at all

Step 8: major supports and resistance
areas.

Always go with the trend and

make the trend as your friend.
Step 9:

Refer to the Module 6 video while

Step 10:
doing this analysis yourself.

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 Module 6

Lesson 2: You may consider preparing a

ledger with the below parameters before
taking any trade. This is applicable for any
stock/index in which you wish to trade.

1st Consider the trend line support.

2nd Identify the immediate support /resistance.

3rd Identify the double top area.

4th Identify the double top all time high.

You may then consider the 30DMA and 100DMA as

5th your support/resistance (other DMAs can be
considered based on your trading style).

Next you need to consider the Fibonacci

6th support/resistance

7th Also consider the monthly support/resistance.

8th Check RSI and look for divergence, if any.

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 Lesson :

1. Intraday chart reading – General

Discussion

2. Retracements & Pullbacks in

intraday trading:

3. Implication of Volume on intraday

trading
4. Intraday Profit Booking

5. Intraday Stop Loss

 Module 7

Lesson 1: Intraday chart reading – General

Discussion:

Intraday refers to price movement of a given security over the

course of one day of trading. It is generally used to describe
the open, high, low and closing price of a stock during a given
day or session.

Traders pay close attention to intraday price movements by

using real time charts in an attempt to benefit from short-
term price fluctuations. Short term traders typically use 5, 15,
30, 60 minute intraday charts when trading within the market
day. Usually intraday scalpers use one to five minute charts
for high speed trading. Scalping is a strategy of transacting
many trades per day that hopes to profit from small
movement in stock price.

In intraday chart bid price means the highest price at which

someone is willing to buy stock. Ask price indicates the lowest
price at which someone is willing to sell stock.

Intraday charting is very popular in the trading community.

Intraday charts illustrate the price movement of a market
within the confines of the daily opening and closing bells of the
market.

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 Module 7

Emotions play a major role in decision making and as a trader

you should control your fear and loss. Greediness is another
emotion that can make you lose money.

You must analyze your stocks technically and fundamentally

and do a proper research before trading that stock.

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 Module 7

Lesson 2: Retracements & Pullbacks in

intraday trading:

A pullback is a price movement that goes against the trend. It

is a temporary price movement before it resumes itself into
the main market direction. Pullbacks are very similar to
retracement or consolidation and can be used
interchangeably. Pullbacks occur when price moves at least
one bar against the opposite direction of the trend.

Retracement is just a formal/technical term where as pullback

is a more informal term. They both mean the same thing - a
movement in the opposite direction of the prevailing trend. By
the way, these terms are not restricted to forex trading, rather
these are applicable to any instrument or any market.

The duration of a pullback is usually only a few consecutive

sessions. A longer pause before the uptrend resumes is
referred to as consolidation. Pullbacks can provide an entry
point for traders looking to enter a position when other
technical indicators remain bullish.

The benefit of trading a pullback is that it will have a tighter

stop loss as your trade location is good and this gives you a
better risk to reward ratio. It’s easier to pull the trigger as
you’re buying high and selling low.

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 Module 7

Pullbacks are widely seen as buying opportunities after

security has experienced a large upward price movement.
Most pullbacks involve a security’s price moving to an area of
technical support such as moving averages or pivot points
before resuming their uptrend. Traders should carefully watch
these key areas of support since a breakdown from them
could signal a reversal rather than a pullback.

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 Module 7

Lesson 3: Implication
of Volume on intraday trading:

Volume is simply the total number of buyers and sellers

exchanging shares over a given period of time, usually a day.
The higher the volume, the more active the share is. The data
regarding the volume of a share will be available on your
online trading screen. Most financial sites carry data about
volume.

Traders rely on it very much because it will lets them know the
liquidity level of an asset, how easily they can get into or out
of a position close to the current price which can be a moving
target.

Volume analysis is a technique used to determine the trades

that you will make by discovering the relationships between
price and volume.

Volume is a very important part of trading. If you combine

volume data with support and resistance level then you will
get the real picture.

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 Module 7

Volume is a critical factor in technical analysis. Support and

resistance is not valid unless it is backed by volume. Volume
always moves with the trend. If the prices are moving in
upward trend then volume should increase and the opposite
will happen for downtrend. If the relationship between volume
and price movements starts to deteriorate then it is a sign of a
weak trend.

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 Module 7

Lesson 4: Intraday Profit Booking:

The intraday stock is based on market sentiments and hence if

you make profit in intraday, the trade has to be based on
movement of the market. If the market is bullish then buy and
sell a few times to earn small profits rather than waiting for
big moves. Similarly, if the market is bearish then you can
short sell and buy at lower levels to gain small profits with 2-3
trades.

Typically a ½ to 1% gain on any particular trade is considered

to be a decent gain. However as a trader you need to keep in
mind the other factors like support/resistance, volume, RSI
etc.

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 Module 7

Lesson 5: Intraday Stop Loss:

One of the most important aspects to remember during

intraday trading is to use stop loss. Stop loss helps to minimize
your loss in case of sudden reversal in the direction of stock.

An intraday trader uses stop loss level on the trade

beforehand. When the cost reaches the predetermined stop
loss level the transaction automatically stops. The trader is
able to save the rest of the money and begin to plan for a
return of the funds that are lost.

Most traders at the beginner level struggle to determine

where to put stop loss levels. If one sets stop loss level too far
then there is a risk of losing money if the stock heads in the
wrong direction. Alternatively, if the trader sets the stop loss
level too close to the buying price, then they lose money as it
is taken out of their trades too soon.

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 Lesson :

What is TradingView?

1. Introduction to TradingView

2. Chart Drawing in TradingView

3. Indicators

4. Fibonacci Retracement
 Module 8

What is TradingView?

TradingView is a cloud-based charting and social-networking

software for both beginner and advanced active investment
traders. Basic charting, research, and analysis information
are available with a free account. Still, most trades must be
made outside the platform because only select brokerages
are linked to TradingView at this time.

TradingView is available on any desktop and on all iOS and

Android devices through the App Store and Google Play.

You can practice trading stocks, cryptocurrencies or forex or

create portfolios without using real money, with paper
trading, so you can hone your skills. Then you can find out if
your brokerage is partnered with TradingView.
TradingView is an online stock-picking software and screener
for both beginners and experienced active traders. It
incorporates extensive cloud-based charting tools for
research and gives users the ability to share and collaborate
with other active traders online. The downside is that most
large brokerages are not yet directly integrated with
TradingView, so you’ll have to place trades separately with
your brokerage of choice.

TradingView was released in June 2012 as a social platform

for active traders and featured its own scripting language
that allows users to customize charts and indicators. It
continues to be a popular choice among active traders and
financial software companies because of its versatility.

Users can learn new concepts, research market fluctuations,

possible chart outcomes, collaborate with other traders,
chat, ask questions, and practice trades with the TradingView
platform on any device.

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 Module 8

Lesson 1: Introduction to TradingView

HOW TO START:

STEP 1 - Click on the link below

'https://bit.ly/tradingview-free'

Click on 'Start now' to Sign Up in your account.

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 Module 8

STEP 2 - Home page of TradingView website.

Information that can be found on home page.

1. NIFTY and SENSEX yesterday's closing.

2. Market summary (Indian market and global market)

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 Module 8

3. Stock section displayed Yesterday's Most Active  / Gainers /

Losers companies' stocks.

Click here

4. Calendar section - all the upcoming events datewise

mentioned here. Click on "More events" to get all the events
during the month.

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 Module 8

5. News related to stock market.

6. Stock ideas of different analysts. Their recommendation
regarding stock buy or sell.
7. Forex ideas, ie. currency trading ideas and news.
8. Crypto currency trading ideas.
and also
9. Commodity market news, information and trading ideas etc.

STEP 3 - Knowing the basic plan of tradingview portal.

And comparison with paid plans.

Scrolling down to the bottom of the home page, the following

section will come.

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 Module 8

Click here

1. Click on the "Price" marked in the above picture.

2. Pricing of different plans will

show up like this.
3. Scroll down to compare all the
plans.

4. Important information to check here - features of basic

plan.

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 Module 8

The features of the basic plan are:

1. Tradingview portal can be accessed in a single device at
the same time.
2. The indicators can be used in a particular chart at the
same time, maximum three.

(Features that will require to cover the analysis process

covered in the course can be done by basic plan)

STEP 4- Create an account in Tradingview portal or

Sign in Tradingview portal.

Click here

1. Click on the "Sign in" marked in the above picture.

2. Those who already have

account in Tradingview can
Log in with their details.

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 Module 8

3. Those who do not have

an account previously, click
on "Sign Up"

4. Trading view account user ID can be created with any of

the social media accounts (i.e. Facebook, twitter, linkedin,
Google account or E-mail.)

STEP 5- Create an account in Tradingview portal with

an email account.

1. Click on "Email or
Username".
Click here

2. Enter the following

details:
a. A user name
b. E-mail ID
c. Password
Check all the check boxes
and click on "Sign Up"
button.

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 Module 8

3.  The following instruction

will appear on your screen.

4. Go to inbox of the e-mail ID given during the "Sign Up

process.

5. A mail from Tradingview will be received in the inbox as

shown above. Subject line - " Confirm your email address"

6. Click the mail to open and you will find an "Activate

account" button as shown above.

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 Module 8

7. By clicking the button your basic plan of Tradingview will be

activated.

8. On the website you will be

asked to input some more
detail, i.e.
a. Upload a Photo
b. First name
c. Last name  
You can provide the details or
skip it, as it is not mandatory.

9. Your user Id will shown at the top of you profile as marked

in the picture.

10. Your basic plan is currently activated and can be verified

on the following tab of your profile that is showing "Current"
as marked in the above picture.

Your account creation on Tradingview is complete. Return to

home screen.

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Lesson 2: Chart Drawing in TradingView

HOW TO DRAW CHART OF A COMPANY:

STEP 1 - Start from home screen of your account.

STEP 2 - Decide a company name that you want to draw

in the chart.
Let's draw the chart of "BAJAJ FINANCE LIMITED"

STEP 3 -

1.Go to the search bar and type the company name (here i.e.
BAJAJ FINANCE LIMITED").
2. Stock names automatically come with inputs.
3. Select the stock name using your mouse pointer.
- A chart of "BAJAJ FINANCE LIMITED" will come on your
screen.

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4. You will get three options above the chart as

- Overview, Ideas and Technicals.

In  "Ideas" tab you will find

analysis of other experts
regarding the stock.

In "Technicals" tab you will find

technical information regarding
the stock.

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5. Back to "Overview" section and click on "Full-featured

chart " as marked in above picture.

6. A full screen line chart will come on your screen.

7. To change the type of chart (i.e. from line chart to Bar
chart or Candlestick chart) click on the third option on the
uper bar as marked in the above picture.

8. A list of all chart types will open as shown in the picture.

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9. Click on the "Bars"

option to change the
chart type to bar
chart.

10. Again click on the

"Candles" option to
change the chart type
to candle chart.

11. To zoom in on the chart press the "+" (Zoom in) button by
using the mouse pointer, as marked in the picture.

12. To zoom out of the chart press the "-" (Zoom out) button
by mounse pointer, as marked in the picture.

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13. To move the chart right press the ">" (Scroll to the Right)
button, as marked in the above picture.

14. To move the chart left press the "<" (Scroll to the Left)
button, as marked in the above picture.

15. To increase or decrease

the height of the candles, take
the mouse pointer above the
price line (marked in the
picture) and click. Now move
the mouse up side or down
side (without releasing the
click) to change the chart
height.

16. Return to Bar chart.

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STEP 4 - Draw a chart for different time frames.

1.Default time frame of a chart is daily.

- to confirm that take the mouse pointer on top of the chart,
second option as marked in the picture, it will show "D" or "1
day".  
- and also " 1D" mentioned beside the name of "BAJAJ
FINANCE LTD".

2. Click on the option a drop-down list will open, with other

available time frames.
- Click on the "15 minutes" option to select the 15 minutes
time frame chart.
- Use the options mention in Step-3 to adjust the chart.
(Each bar of this chart representing price change or price
action of 15 minutes.)

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3. By the above mention method change the chart also on

other time frames.
- Here a "1 month' time frame chart showing in the above
picture.

As previously mentioned that advertisement will appear on

the screen in the basic plan. So you can ignore that by
clicking the cross button on the add tab.

STEP 5 - Check the traded volume of the share.

1.At the bottom of the chart there is a bar graph (as marked
in the above picture). This is the volume graph.
- As the current selected chart is for "1 day" time frame, the
individual volume bar shows daily traded volume of the
share.

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STEP 6 - Draw a trend line.

1.At the left of the screen

there is a tool bar.
- Second option on the tool
bar is "Trend Line Tools"
(marked in the picture).
- Click on the option using
mouse pointer.

2. A list of many tools will

appear as you click on it.
Among all the tools the
most important three tools
that we need are:
Trend Line
Horizontal Line
Vertical Line

3. Select the trend line option

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4. A new tool bar will open on the screen, which was not
present previously.

5. Draw the trend line, by clicking at one point on the chart

and continue connecting all the points that require to be
connected on the chart and click again where you want to
finish the line. (as drawn in the above picture, where all the
bottom points of the chart are connected by the trend line.

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6. To change the colour of

the line go to the colour
option on the tool bar (as
shown in the picture) and
select the colour.

7. To change width of the

trend line, select the option
beside the colour option in
the tool bar (as shown in the
picture).

8. Also you can select the

trend line and right click on
the mouse. A tool box with
options will open on the
screen.
We can do the same things
(like colour change and width
change from here).

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9. Remove the trend line from

the chart:
option 1- Select the trend line
and press the "DEL" or
"Delete" button on your
keyboard.
Option 2- Select the trend line
and right click. A tool box (as
shown in the picture) will
open on the screen. Select
the "Remove" option.

STEP 7 - Draw a support line.

1.Again go to the left tool bar

on the screen.
- Select the second option on
the tool bar which is "Trend
Line Tools"
- Click on the option using the
mouse pointer.
2. Select the "Horizontal Line"
option.

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3. A new tool bar will open on the screen, which was not
present previously.

4. Draw the horizontal line where it is required (as shown in

the above picture).

5. We can also change the colour and width of the line by

using above two options, as mention previously.

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STEP 8 - Draw a vertical line.

1.Again go to the left tool bar

on the screen.
- Select the second option on
the tool bar which is "Trend
Line Tools"
- Click on the option using the
mouse pointer.
2. Select the "Vertical Line"
option.

3. A new tool bar will open on the screen, which was not
present previously.

4. Click at the place where you want to draw the vertical line
(as shown in the above picture).
- to move the line from its place, click on it, hold and move
the pointer. The same is also applicable to the horizontal line.

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9. Remove the horizontal line and the vertical line from the
chart:
option 1- Select the line and press the "DEL" or "Delete" button
on your keyboard.
Option 2- Select the line and right click. A tool box (as shown in
the picture) will open on the screen. Select the "Remove"
option.

STEP 9 - Import a new chart of another company.

1.Take the mouse pointer on the search bar (marked in the

picture).
2. Type a new company's name (here, it is Reliance Industries
Limited.)
3. Select the company's name from the preference.

4.  Reliance Industries Limited will show on the screen as

above.

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Lesson 3: Indicators:

HOW TO USE TECHNICAL INDICATORS:

Moving Average
STEP 1 - Take a chart on your screen. (as we already
have the "Reliance Industries Limited" chart
from the last lesson).

STEP 2 -

1.Take the mouse pointer on the tool bar above the chart,
fifty option of the tool bar “fx” or “Indicators & Strategies”,
click on the option.
2. A new tab, Indicators & Strategies will open on the screen.
Here you can find all the indicators that TradingView has.

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3. Type on the search bar of the tab " Moving Average", some
options will came automatically.
- Select Moving Average option and cross the tab.

4. A thin line will appear in between the bars, i.e. Moving

Average line.

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5. To change the colour and

pattern of the line,
- Right click on the line
- A tool box will open
- Go to Style tab and do the
changes
(As shown in the picture).

6. On the same tool box go to "Inputs" option to change the

period of moving average line.
- By default it is 9 day moving average.
- To confirm it check on this box "Length" option showing "9"
(marked in the picture.)
- And  on the screen it is also mentioned "MA 9" (marked in
the picture)
7. To change the moving average period change it on the
"Input" tab "Lenght" option and click on "OK".
- we can change it as per our requirement as many times as
we want.

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STEP 3 - Use double moving average in a chart.

1.Take the mouse pointer on the same tool bar as mentioned

in Step-2, Point 1. (Marked in the picture), fifty option of the
tool bar “fx” or “Indicators & Strategies”, click on the option.
2. A new tab, Indicators & Strategies will open on the screen.
Here you can find all the indicators that TradingView has.

3. Type on the search bar (as did before) of the tab " Moving
Average", will come.
- Select Movinng avarage option and cross the tab.

4. Two moving average lines will appear on the screen.

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STEP 4 - Preparing golden cross over of moving

average.

We learned previously in this course, Golden cross over of

moving average is the cross of two moving average lines, i.e.
13 day moving average and 30 day moving average.

To make that golden cross over.

1.Select one moving average

line, right click
- Go to "Settings" option
- A tool box will open
- Go to Input tab
- Insert "13" in the "Length"
(13 day moving average line
will appear in the chart).

2. Select another moving

average line, right click
- Go to "Settings" option
- A tool box will open
- Go to Input tab
- Insert "30" in the "Leaght"
(30 day moving average line
will appear in the chart).

Both the moving average lines will intersect with each other at
one or more than one place on the chart.

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3. In the above chart we can observe that the 13 day moving

average has crossed the 30 day moving average at a place
(Marked in the chart), and after that a bull move happened
on the share price.
- This is how we can use moving average to predict up move
in share price.

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RSI Indicator
STEP 1 - Take the same chart on your screen. (as we
already have the "Reliance Industries Limited"
chart from the last lesson.

1.Take the mouse pointer on the same tool bar above the
chart click on the same option “fx” or “Indicators &
Strategies”.
2. The same tab Indicators & Strategies will open on the
screen.

3. Type on the search bar of the tab " Relative Strength

Index", some options will came.
- Select Relative Strength Index option and cross the tab.

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4. A new section below the chart will appear, i.e. Relative

Strength Index or RSI indicator.
- A zone is marked on the RSI index (Blue area), that is we
know as learned previously.
- RSI above 70 is over brought.
- RSI below 30 is over sold.

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Bollinger Band
STEP 1 - As currently we are on the basic plan of
TradingView platform, We know that we can-
-not use more than three indicators in our chart at a time.
Therefore, we have to remove one or more than one
indicators from our screen. If you do not remove one, the next
indicator will not appear.

STEP2 -

1.Take the mouse pointer on the same tool bar above the
chart click on the same option “fx” or “Indicators &
Strategies”.
2. The same tab Indicators & Strategies will open on the
screen.

3. Type on the search bar of the tab " Bollinger Band", some
options will came.
- Select Bollinger Band option and cross the tab.

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4. Bollinger Band will appear on the chart.

- We can change the period as per our requirement (like.
daily, weekly and monthly etc.)

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Parabolic SAR
STEP 1 - Cross the Bollinger Band on your screen.

STEP2 -

1.Take the mouse pointer on the same tool bar above the
chart click on the same option “fx” or “Indicators &
Strategies”.
2. The same tab Indicators & Strategies will open on the
screen.

3. Type on the search bar of the tab " Bollinger Band", some
options will came.
- Select Bollinger Band option and cross the tab.

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4. Parabolic SAR, few dotted lines will appear on the chart.

- Where the line is below the bars, it is indicating up move of
price.
- And where the line is above the bars, it is indicating down
move of price.
- We can change the period as per our requirement (like.
daily, weekly and monthly etc.)

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Lesson 4: Fibonacci Retracement:

STEP 1 - Take a chart on your screen. (as we already

have the "Tech Mahindra Limited" on our
screen).

STEP 2 -

1.Take the mouse pointer on the left tool bar,

- Third option of the bar is "Gann and Fibonacci Tools"

2. A list of options will open

- Click on the "Fib
Retracement" (marked in the
picture).

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3. Now take the mouse pointer at the bottom of the chart (in
the current chart the area marked in the picture).

4. Hold the click and drag it to the highest point of the chart.

5. A pattern (shown in the picture, coloured area) like this will

appear on the chart.

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6. Zoom in on that area.

7. We will find all the retracement levels (as we learned from

module 4, lesson 1) marked in the chart. We can check the
prices of the share at various retracement pionts.

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