Business Development

Executive

Training

HARVEST GLOBAL MARKETS

 Market Analysis

Disciplined trading is a key to

success in the financial market.
At HG Markets we encourage
that a detailed market analysis
should be performed before
taking a position in the market.

Market analysis comprises of

taking into account the technical
(historical trends) and
fundamental (Macro & Micro
View) factors of the market
which can enhance the chances
 Technical Analysis
Bull and Bear Market
Bull Market
A long period in which investment prices
rise faster than their historical average.
Bull markets can happen as a result of an
economic recovery, an economic boom, or
Bear Market
investor psychology.
A long period in which investment prices fall,
accompanied by widespread pessimism.
 Technical Analysis
An analysis based upon only historical pricing and
previous patterns, by focusing on chartings under
the technical analysis umbrella.

History tends to repeat itself:

Well, thats basically what technical analysis
is all about! If a price level held as a key
support or resistance in the past, traders
will keep an eye out for it and base
their trades around that historical
price level.

Technical analysts look for similar patterns

that have formed in the past, and will form
 Technical Analysis
In the world of trading, when someone says technical
analysis, the first thing that comes to mind is a chart.
Technical analysts use charts because they are the easiest
way to visualize historical data!
You can look at past data to help you spot trends and
patterns which could help you find some great trading
opportunities.
As more and more traders look for certain price levels and
chart patterns, the more likely that these patterns will
manifest themselves in the markets.
 Types of Charts

There are many ways of depicting historical numeric data into graphical form.
In financial markets, following graphical presentation are commonly in use:

Bar Charts
Candle Sticks
Line Charts
 Candle Stick Analysis

In earlier times Japanese created their own old

school version of technical analysis to trade
rice.

A westerner by the name of Steve Nison

discovered this secret technique called
Japanese candlesticks.
 Candle Stick Analysis

Time period:
Candlesticks can be used for any time
frame, whether it be one day, one hour, 30-
minutes whatever you want! Candlesticks
are used to describe the price action during
the given time frame.
 Candle Formation
Candlesticks are formed using the
open, high, low, and close of the
chosen time period.
If the close is above the open, then a
hollow candlestick (usually displayed
as white) is drawn.
If the close is below the open, then a
filled candlestick (usually displayed as
black) is drawn.
The hollow or filled section of the
candlestick is called the real body or
body.
The thin lines poking above and below
the body display the high/low range
and are called shadows.
 Trend Line
As per the standard rule of technical analysis two points either from two
consecutive highs or lows are required to form a trend line.
 Trend Channel
A pair of parallel lines, which remain parallel when moved or extended. The upper
line called RESISTANCE and lower one called SUPPORT. Technically a chartist
believes that support & resistance lines never break until channel breaks.
 Head & Shoulder
The head & shoulder
has three price peaks,
the middle of which is
distinctly higher than
the left (Shoulder) or
right (Shoulder) peaks.
 Double Top
A double top, consists of two peaks
separated by a reaction or rally in
prices. Failure to exceed a previous
peak, however, cause the formation
of a double top', follow by a
downside violation of a previous
low.
 Double Bottom

In a double bottom price must close

above the high point between the two
bottoms before a trading decision can be
made. Prices will rally to as far above the
high point as the distance between this
high point and the twin lows.
 Descending Triangles

Descending triangle is a
pattern in which highs move
progressively low, while the
lows encounter support at
one price level. Its a selling
signal.
 Ascending
Triangles
A bullish chart pattern
used in technical analysis
that is easily recognizable
by the distinct shape
created by two
trendlines.In an ascending
triangle,one trendline is
drawn horizontally at a
levelthat has historically
prevented the price from
heading higher, while the
second trendline connects
a series of increasing
troughs. Traders enter into
long positions when the
price of the asset breaks
above the top resistance.
 Relative Strength Index

A technical
momentum
indicator that
compares the
magnitude of recent
gains to recent
losses in an
attempt to
determine
overbought and
oversold conditions
of an asset.
Moving Average Convergence Divergence
Fibonacci Retracement
A term used in technical analysis that
refers to areas of support (price stops
going lower) or resistance (price stops
going higher). The Fibonacci
retracement is the potential
retracement of a financial asset's
original move in price. Fibonacci
retracements use horizontal lines to
indicate areas of support or resistance
at the key Fibonacci levels before it
continues in the original direction.
These levels are created by drawing a
trendline between two extreme points
and then dividing the vertical distance
by the key Fibonacci ratios of 23.6%,
38.2%, 50%, 61.8% and 100%.

Fibonacci retracement is a very

popular tool used by many technical
traders to help identify strategic places
for transactions to be placed, target
prices or stop losses.
 Bollinger Bands

This is one of the most

popular technical
analysis techniques. The
closer the prices move to
the upper band, the more
overbought the market,
and the closer the prices
move to the lower band,
the more oversold the
market.
Pivot Points
Open House Session