TECHNICALANALYSISTRADING COURSELearn Technical Analysis For Stock Market

By Carlos Branco

COURSE CONTENTLearn Technical Analysis For Stock Market

By Carlos Branco

What is a Stock?Stock PriceLong or ShortWhat is LeverageDifferent AnalysisHow Much Time I NeedRead Market Structure andTrendsStrategy 1 Strategy 2Protect Capital

1.2.3.4.5.6.7.

8.9.

10.

1-What is a Stock?A stock is a small part of a company

when you own a stock you own a smallpart of that company.

To make money with stocks you havetwo ways:

The first is to buy and sell at a higherprice in the future.

This practice involves risks but ispracticed by millions around the world.

Another way to make money is byinvesting in stocks that pay dividends.

Some stocks distribute profits toshareholders.

2 - STOCK PRICE ANDMARKET CAP

Some newcomers to the stockworld tend to look at the price ofstocks and think that the price of astock is related to the value of thecompany.

So if an Apple stock costs 140 USDand an Amazon stock costs 3200USD does that mean that theAmazon is 20 times bigger than theApple?Incorrect.

In order to know the value of a companyin the market, we must do the following:

Number of shares outstanding x Price =

Market Cap

2 - STOCK PRICE ANDMARKET CAP

Some newcomers to the stockworld tend to look at the price ofstocks and think that the price of astock is related to the value of thecompany.

So if an Apple stock costs 140 USDand an Amazon stock costs 3200USD does that mean that theAmazon is 20 times bigger than theApple?Incorrect.

3 - GO LONG OR SHORT

In the stock market we can makemoney when the market is goingup or going down.

Going LONG means that we arebuying shares and intend to sellthese shares for a higher value and make money.

Example: We buy 3 shares of APPLE at 100 usdWe wait and sell these 3 shares for 110 usd

Profit 10 usd per share x 3 shares = 30 usd profit

3 - GO LONG OR SHORT

Going SHORT means making moneyfrom the devaluation of a stock.

This despite being a strangeconcept is possible and works inthe following way.

Example: You SHORT APPL - 3 Stocks

The broker lends you 3 stocks that are immediately sold atmarket price current.3 stocks x 100$ per stock = 300 usd

You have to buy 3 stocks back when you want to exit your position.

Apple shares go down to 90 USD so you close our shortposition. You buy 3 shares for 270 USD.

300 usd - 270 usd = 30 usd profit

3 - GO LONG OR SHORT

Dangers of going SHORT. When you go LONG the worst possible scenario is to lose is 100% of your position if the stock goes tozero.

When SHORT it's possible that price double or tripleand if that price movement happens fast, sometimesyou can even lose more money than you expected.

4 - What is leverage and what arethe Risks

Leverage is when the broker allows youto have more buying power that you

already have. For example some brokersallow you 2x, 3x 10x your capital.

Example: You have 10,000$

and you buy 20.000$ of Apple Stockusing 2x leverage

Stock drops price 50%Broker immediately liquidate your

position and your balance now is zero.

You should avoid to use leverage at allcost because can make massive

damage in your account.

5 - DIFFERENCE BETWEENTECHNICAL ANALYSIS ANDFUNDAMENTAL ANALYSIS

Fundamental Analysis is idea basedon trying to find a disconnectionbetween a company intrinsic valueand the current market value. Forthis, the investor must analyzenews, company information directlyfrom financial statements and anyother information available.

CHARTS ARE NOT IMPORTANT

WARREN BUFFET

5 - DIFFERENCE BETWEENTECHNICAL ANALYSIS ANDFUNDAMENTAL ANALYSIS

On the other hand, in technicalanalysis is based only on price andindicators, not taking into accountfactors related to news or thefuture of the company

The trader who uses technicalanalysis only tries to use indicatorsto try to find trends and be part ofthem, as he believes that the newsand the potential value of the stockis already reflected in its price.

IN THIS COURSE WE WILL FOCUS ONTECHNICAL ANALYSIS BUT IF YOU YOU WANT

YOU CAN TAKE A LOOK AT FUNDAMENTALANALYSIS BEFORE OPENING A TRADE TO

CONFIRM THAT YOU ARE ON THE RIGHT SIDEOF THE MARKET.

6 - HOW LONG DO I NEEDTO LOOK AT THE CHARTSPER DAY

There are different types oftrading.

Day TradingThis type of trading may requiresome attention from the trader asthe entry and exit of the trade isdone on the same day. As a generalrule, you will use timeframes from15M to 1H.

IF YOU WANT TO BE A DAY TRADER MAYBE YOU WILL NEED TODEDICATE COUPLE HOURS PER DAY TO

TRADING

6 - HOW LONG DO I NEEDTO LOOK AT THE CHARTSPER DAY

Swing TradingThis type of trading requires lesstime from the trader as trades areopen for a few days. Swing tradersgenerally use charts from 1h to 4hand sometimes daily for entries andexits.

SWING TRADING IS MUCH MORE RELAXED THEN DAY TRADING, ALSO

HELPS YOU TO BUILD DISCIPLINE BECAUSETEACH YOU TO WAIT

IDEAL TRADING STYLE IF YOU HAVE A JOB

BUT YOU STILL HAVE FREE TIME

6 - HOW LONG DO I NEEDTO LOOK AT THE CHARTSPER DAY

Position TradersThis is the type of trading thatrequires less time, maybe 1 hour aweek or two is enough as tradeswill be open for weeks or months.

POSITION TRADERS ARE ALMOST LIKE INVESTORS, WHEN YOU POSITION TRADE

YOU USE WEEKLY OR MONTHLY TIMEFRAME,SOMETIMES DAILY FOR ENTER OR EXIT

THIS BRINGS YOU A BIG ADVANTAGE SINCE

YOU WILL FALL LESS FOR MARKETMANIPULATIONS. USUALLY SIGNALS GIVEN BYINDICATORS ON BIG TIME FRAMES ARE MUCH

STRONGER AND SHOW US BETTER WHATDIRECTION THE MARKET IS AIMING

7 - READ MARKETSTRUCTURE AND TRENDS

The stock market like otherfinancial markets moves in waves.The price needs to move this wayto be efficient, these waves allowsome players to be liquidated,others to exit their positions andothers to accumulate newpositions.

WE RETAIL TRADERS ARE A SMALL FISH INTHIS WORLD OF SHARKS, WE HAVE TO TRYTO CATCH THE WAVES AND WHEN WE ARE

WRONG WE TRY TO SURVIVE.

Retail

7 - READ MARKETSTRUCTURE AND TRENDS

When we look at a chart the firstthing we can identify is pricemovement by looking at thecandles. My suggestion is to startby marking highs and lows on thechart.

7 - READ MARKETSTRUCTURE AND TRENDS

Then we can connect the highs andlows using lines, like thiswe can visually see that the chart isin an uptrend.

7 - READ MARKETSTRUCTURE AND TRENDS

When a high or low is violated wecall it break of structure. This doesnot always mean that we areentering a new trend but it couldmean this in some cases.

7 - READ MARKETSTRUCTURE AND TRENDS

Another simple method ofidentifying trends is to use movingaverages. These lines can be usefulfor identifying the direction of themarket. For example we can usethe 200 Moving Average to decidethat if the price is above this wewill only go LONG if it is below thiswe will only look for SHORTS. 200 MOVING AVERAGE

21 MOVING AVERAGE

8 - STRATEGY 1

This first strategy is quite simple,let's use the concept that wasexplained in the previous video,break of structure.

First we need to identify anascending structure break abovethe 200 moving average if we lookfor LONGS or a descendingstructure break if below the 200moving average to go SHORT.

But we will not open the tradeimmediatly we gonna WAIT...

8 - STRATEGY 1

Now we can measure themovement and divide it into twohalves and we will wait for theprice to fall back to the lower areabelow 50%. This will be the idealplace to enter the trade.

8 - STRATEGY 1

Our stop loss should be placedbelow the last higher lowand we will be able to place ourfirst take profit at the new higherhigh.

We can close 50% of our positionon the first take profit and let therest run. STOP LOSS

FIRST TAKE PROFIT

ENTRY

8 - STRATEGY 1

Real life example, NETFLIX Break of structure andretracement.

8 - STRATEGY 1

After close the first part of your trade you can let the rest to run and you will besurprise how much that partial position can make you.

Also you should move your stoploss after the first take profit.

STOP LOSS

FIRST TAKE PROFIT

ENTRY AREA ALWAYSBELLOW 50%

9 - STRATEGY 2

Our second strategy is based on anindicator called donchian channeland although simple it worksincredibly well.

I will now explain how the strategyworks and how we can find dailyopportunities to apply this strategy.

9 - STRATEGY 2

The bottom channel and top channelare created based on the highesthigh and lowest low of the last 20periods.

We will use the Donchian channelin conjunction with the 200 movingaverage.

TOP CHANNEL

BOTTOM CHANNEL

9 - STRATEGY 2

The first thing we'll check iswhether the price is above or belowthe 200 moving average.

If the price is above the 200moving average we will just try toenter BUYS if it is below 200moving average we willjust look for SHORTS.

200 MOVING AVERAGE

THE PRICE IS ABOVE THE 200 MASO WE GONNA LOOK FOR BUYS

9 - STRATEGY 2

As the price is above the movingaverage we expect the price tobreak the bottom channel and whenthat happens the next day we willgo LONG.

If the price were below the movingaverage we expect break the topchannel price and then the next daywe go SHORT.

BOTTOM CHANNEL

200 MOVING AVERAGE

PRICE BROKE BOTTOM CHANNEL

9 - STRATEGY 2

When price brake the bottomchannel we will wait next dayMarket open and then we go LONG.

The Stop Loss must be placed onthe low of the previous candle.and the take profit will be on thetop channel.

As we can see our Risk To Rewardis great, We are risking $0.80 pershare for a possible gain of $3.91per share.

WE ENTER ON THE NEXT DAY OPEN AFTERTHE BOTTOM CHANNEL BREAK

STOP LOSS: 63,22$ENTRY: 64.02TAKE PROFIT: 67,93$

RISK: 0,80$REWARD: 3,91$1 TO 4.88

9 - STRATEGY 2

To find everyday tradingopportunities using this strategyjust use the website Kairibull.comand do the following:

VISIT KAIRIBULL.COMSELECT THIS 3 FILTERS

CLOSE PRICE ABOVE 200 SIMPLE MOVING AVERAGEOPEN PRICE ABOVE DONCHIAN BOTTOM (20D)

CLOSE PRICE BELLOW DONCHIAN BOTTOM (20D)

YOU SHOULD GET DOZENS OF SIGNALS EVERY SINGLE DAY

10- Protect your capitalOne of the things that took me a whileto learn was realizing that I don't need

to be correct 50% of the timeor more to be a consistent trader.

It is possible to earn a lot of money bybeing correct 30% of the time in some

cases even less.

In the Strategy 2 example, our risk toreward was 1 to 4.88

Let’s say we risk 100$ per trade and we

have a 30% win ratio. So we lose 7 trades and win 3.

Lose : -700 usd Wins : 1464 usd Profit: +764 usd

EVEN WITH A WIN RATIO AS LOW AS 30% IT IS POSSIBLE TO BE A PROFITABLE

IF WE TAKE TRADES WHERE THE RISK TO REWARD IS GOOD.

Thank You

Don't forget to share this course :)

www.kairibull.com