Features of Technical Analysis
To be a better investor it’s important to understand the key features and benefits of technical analysis and how it fits with other forms of investment appraisal.
Investment appraisal typically involves a review of three types of information. These are asset fundamentals, a review of macro economic factors and a review of price and volume and personal investment practices. The later aspects are typically called technical analysis (TA)
Our experience is that most of our clients already have an idea of fundamental and macro economic factors. LTAG Tuition, through technical analysis, build upon what you most likely already know a deeper understanding of how price, volume and trading approaches can make you a better investor.
The core idea behind technical analysis is that market prices are not random but instead follow recognizable patterns and trends. By analyzing historical price data you can identify these patterns and use them to predict future price movements.
Key Features of TA
Technical analysts use price charts to visualize the historical price movements of an asset over time. They examine different types of charts, such as line charts, bar charts, and candlestick charts, to identify patterns and trends
One of the fundamental principles of technical analysis is the concept of trends. Traders look for upward (bullish) or downward (bearish) trends in price movements to determine the general direction of an asset’s price.
Support levels are price levels at which buying pressure is expected to be strong enough to prevent further price declines, while resistance levels are price levels where selling pressure is expected to be strong enough to prevent further price increases. Technical analysts use these levels to identify potential entry and exit points for trades.
These are mathematical calculations applied to price and volume data to generate trading signals. Examples of technical indicators include moving averages, oscillators (such as the Relative Strength Index – RSI), and MACD (Moving Average Convergence Divergence).
Technical analysts study various chart patterns, such as triangles, head and shoulders, double tops/bottoms, and wedges, to anticipate potential trend reversals or continuation.
The trading volume, or the number of shares or contracts traded during a given period, is also analyzed in technical analysis. Volume can provide insights into the strength or weakness of a price movement and validate or contradict other technical signals.
Technical analysts often examine price data over different timeframes, including short-term (intraday), medium-term (daily or weekly), and long-term (monthly or yearly). Each timeframe provides different insights and signals.
Markets move in cycles as investors change from being optimistic (buliish) to pessimistic (bearish). These cycles can be predicted with a range of cyclical techniques and statistical ratios and provide technical analysts with a view of what may happen next and in what timeframe.
Technical analysts will often test their ideas with dummy paper based trades, trades they can place in the past to see how they would have performed or perhaps testing entire trading strategies to see how their investments would have fared if they had bought and sold according to a pre-determined approach.
Technical analysts will evaluate any potential real or dummy trade against potential risk and reward of that trade. Managing risk and reward is an essential skill when trading with technical analysis.
Benefits of TA
Technical analysis helps traders identify price patterns, trends, and market movements. By studying historical price data, traders can identify support and resistance levels, trend lines, and chart patterns that provide insights into future price movements. This can help traders make informed decisions on when to buy, sell, or hold an ass
Technical analysis can assist traders in determining optimal entry and exit points for trades. By identifying trend reversals or breakouts, traders can time their trades more effectively, potentially maximizing profits and minimizing losses.
Technical analysis can aid in risk management by providing traders with tools to set stop-loss orders and profit targets. Traders can use technical indicators and price levels to determine appropriate levels to limit potential losses and secure profits.
Technical analysis can complement fundamental analysis by providing confirmation or validation of investment decisions. For example, if a fundamental analysis indicates a positive outlook for a stock, technical analysis can help identify an appropriate entry point based on price patterns or momentum indicators.
Technical analysis is particularly useful for short-term traders who seek to capitalize on price fluctuations within a shorter time frame. By analyzing intraday or daily price movements, technical indicators can provide signals for quick trades and capitalize on short-term market inefficiencies.
Technical analysis focuses solely on price and volume data, making it a relatively efficient approach compared to fundamental analysis, which involves analyzing a wide range of financial and economic data. Technical analysis allows traders to quickly assess market sentiment and make decisions based on readily available information.
Technical analysis lends itself well to automation and algorithmic trading strategies. Traders can develop and test automated trading systems based on specific technical indicators and rules, allowing for disciplined and consistent execution of trades without emotional bias.
Technical analysis can be applied to various financial markets, including stocks, currencies, commodities, and cryptocurrencies. The principles and techniques used in technical analysis are applicable across different markets, providing traders with a versatile toolset.
Tuition FAQ's
These are some of the frequently asked questions we receive for our courses, or subscription service or 1 on 1 services. If if you have other questions please do complete the form below
Course FAQ's
We presume that you have a degree of understanding of company and economic research. Our investing courses build on that starting from basics and progress. You learn how markers work, how to manage your own psychology as well as analytical tools.
Yes, the courses are on-demand videos which you can view as and when and also go back to as required.
Each course has its own start date and the participants will be part of dedicated chat channel for the duration of that course. Our clients like to share questions and answers in a group so everyone benefits.
The live sessions will be videoed and sent to course participants.
A secure, password protected, link will be sent to you for each session on-demand video as and when they are scheduled.
Each session on-demand video is about 35-40 minutes long, with two being distributed per week. In addition, there will be the live sessions which are typically 60-90 minutes. Overall, excluding your own time to practice what you learn, you will need approximately 3 hours per week.
Each of the LTAG course stages, BASIC, INTERMEDIATE & ADVANCED takes about 3 weeks including Live Q&A sessions. So if you did the ADVANCED course that would take approximately 9 weeks.
It’s up to you. The advantage of being in one group from the beginning is the continuity you’ll develop amongst participants.
Investing principles, techniques and analysis are universal and work with any market and timeframe. Our focus is however stocks so we illustrate the courses with stocks that are popular.
We don’t recommend investing using leverage for many reasons that are explained in our courses. Of course any market can be traded using what you will learn on an LTAG course.
No, there are no hidden fees. However, you will need to budget for a Pro subscription to Tradingview which is the platform the courses will use. You will also need a laptop or desktop with reasonable screen resolution as well as a webcam for the Live on-line sessions.
LTAG courses are designed to give you the ability to improve straight away. Albert has been there and done it and knows what works and what doesn’t so what’s taken him years to learn you can learn in a short period. Albert is very experience and in a long career in consulting knows how to put knowledge across in a manner that benefits his clients most.
Tuition Service FAQ's
We presume that you have a degree of understanding of company and economic research. Our subscription and 1 on 1 tuition build on that starting from basics and progress. By looking at specific examples we will develop your understanding of TA as well as provide timely information on potential trend reversals.
Yes, the subscription service is on-demand videos which you can view as and when and also go back to as required. 1 on 1 tuition is scheduled with you.
The subscription service has two levels. At the basic level you can ask questions that apply to the assets and stocks of common interest to all subscribers. At the premium level you can ask questions on assets of interest to you specifically.
The subscription service aims to cover over time all the key aspects of TA you should know through a series of worked examples of common interest. The webinars will cover in more depth points made in weekly subscription updates.
A secure, password protected, link will be sent to you for each session on-demand video as and when they are released.
Weekly each video will be around 25-30 minutes long with an emphasis on a visual traffic light system that will show you clearly what’s important. The 1 on 1 sessions will be as requested by you.
You may want specific advice only. For example, to review specific techniques or tools, or to review specific investment set-ups, or to review your trade management approach and so on. If that’s you, contact Albert and he’ll chat through options & pricing with you.
It’s down to you and how you learn best. Some prefer to know the theory, others prefer to only have overall guidance, others are limited by the time they have available. We can help you whichever way is best for you.
Yes. You may want to start with the subscription service to get going and add courses later on. Or, you could start with Courses and add the subscription service so that what you’ve learnt can be seen in practice. Of course with 1 on 1 tuition that can be as you’d like it to be.
Yes, the are many but not with a focus on trend reversals as identified with Technical Analysis. Almost all other subscription services are investment news sites of one type or another – that news often being very much after the event.
Like our courses we don’t recommend investing using leverages instruments so neither our subscription service or 1 on 1 tuition will cover these types of instruments
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