Advanced Technical Analysis and Charting

Technical Analysis is more an art than it is a science. One cannot apply standard technical indicators or theory to a price chart and expect to have a winning trading record. In fact, the reason so many new traders fail is because they have a very superficial and theoretical understanding of technical analysis and charting. The expert chartist / technical analyst recognizes technical analysis as an intuitive process, and a chartist’s success at trading comes from understanding why and how certain patterns develop. This course will teach you how to do exactly that. You will learn to recognize high-probability trade set-ups, see how and why certain chart patterns materialize, where and why fake-outs occur, where stops are likely to be sitting and more. You will also understand technical analysis in a completely new way and see why most of what has been published on the subject, is flawed.

For those who are looking to develop trading algorithms or models based on quantitative metrics, this course will provide invaluable insight into how technical indicators should and should not be used. Students will learn how to integrate risk and volatility parameters into their trading. You will learn how to identify likely ranges, profit and stop targets using Bollinger bands, swing patterns and Market Profile. You will learn how to properly use Fibonacci, DMI and RSI. As well, you will develop an intuitive sense for why certain chart patterns develop into winning trade set-ups, and why others fail. In brief, this course will show you how to think of technical patterns qualitatively and see how fundamentals and price action can be recognized in chart patterns.

This course will look at the most successful trading tools and introduce you to the refined strategies and proprietary indicators developed by the course instructor, Shaun Downey. Shaun has been trading and writing commentaries professionally for over 30 years on all asset classes and is an acclaimed author of books on technical analysis, including the Technical Analysis Book of the Year 2014. He also has a long experience teaching technical trading methods, having spent 20 years as lead instructor for CQG.

Key ‘takeaways’ and topics to be covered in this course

  • Learn how to use indicators which encompass a full trading system: targets and stop/loss, trend indicator, volatility and risk;
  • Develop an intuition for the efficacy of certain chart patterns as you learn how and why certain patterns develop;
  • Learn which indicators work best in which market situations, and which indicators should be avoided entirely;
  • Understand technical analysis through case studies and real life scenarios, not just the theory;
  • Acquire continuous training through once a month tutorials and the support of a group of professional traders and instructors.

Tracking Momentum and Risk

  • Redefining Data. What Continuations to use and where.
  • Redefining intraday data to find opportunities 24 hour and electronic markets have denied
  • Moving Averages. Why the established mantras do not work
  • Using Drummond Geometry Red Eye Average for the tightest risk management for day trading
  • Adaptive Averages
  • Average Directional Movement Index
  • Ichimokukinkouyou. Its correct application for Japanese markets
  • Moving Linear Regression as a trend tracker and the quantifying of extremes.
  • Redefining Data. The advantage of Using Heiken–Ashi charts historically and T-flow charts intraday

Trend Lines and Fibonacci

  • The rules for drawing trend lines
  • What to look for at Fibonacci retracements (divergence, volume, patterns)
  • When to use Fibonacci Extensions and the power of zones in creating targets

Volume and Open Interest

  • The link between volume and support and resistance for day trading
  • The limits of participation
  • No one looks at the historical lows of Open Interest. They should
  • Open Interest and gauging the strength of a trend.

Exit strategies

  • Why sound exits to trend following trades need to be good enough as possible counter trend trades
  • Parabolic. Why the original concept is flawed and default settings incorrect. The use of Parabolic and Moving Averages in combination.
  • Redefining data so you can track an intraday trend and stay with it.

DMI. Directional Movement Index

  • Measuring the difference and convergence between DMI values to create intraday exits.
  • Identifying multiple timeframe extremes
  • Redefining data. The use of Constant Volume Bars for day trading
  • The use in explosive commodity based Historical trends.

Bollinger Bands

  • The two-stepped exit pattern for any timeframe or market.
  • If it’s a good enough exit it’s a good enough entry. How the second exit can indicate trend reversals.

The Use of Swing Patterns (Peak) as a Trailing Stop

  • The correct pattern to use
  • Why the gap between price and Swing patterns is important
  • How many times can a Swing pattern extend for day trading
  • Understanding the distance between changes in Swing patterns values
  • Identifying trend beginnings and exhaustions with Swing pattern length and Crossovers
  • Using Hi Lo Count to understand when corrections are due in Swing Patterns

Candlesticks

  • The dangers of having a Candlestick Pattern for any eventuality
  • Why Doji’s are the most important pattern
  • Linking Doji’s to volume and Trend Lines
  • The 1-day pattern when a Doji fails
  • Doji’s and the Time of Day

Popular Momentum Misconceptions and Myths

Slow Stochastics

  • What markets to use them on in the original setting.
  • How to exploit the markets misconceptions.
  • Stochastics and identifying trend beginnings. Why it is a poor measurement of overbought or oversold.
  • The dangers of using as a Divergence indicator.
  • Stochastic Mind Fade. How to avoid missing great trends.
  • Exploiting Top and Bottom pickers combining Candlestick patterns and Stochastics.
  • The use of multiple timeframe crossovers for day trading and identifying extremes.
  • How long can a market stay overbought or oversold?
  • Why overbought fails and oversold works on Index’s
  • The use of multiple timeframe Extreme Counts to identify major turning points
  • Changing the Stochastic to the correct setting so it mimics MACD and allows for true value reference points and the qualification of divergence.

RSI. Relative Strength Index

  • Why the original settings are not useful; the problems of a linear calculation placed on non-linear data.
  • The correct settings for the RSI and how the use of Moving Averages on the RSI creates powerful Divergence patterns.
  • True measures of Overbought and oversold by creating an Unbounded RSI.

Redefining Data to rediscover Key and Island Reversals

  • Reversals and the time of year significance
  • Reversals as Continuation patterns
  • Revealing Patterns on European and American Bond markets

Gaps

  • Redefining data in order to find Hidden Gaps
  • Understanding and quantifying how many Gaps a market has and the subsequent behaviour

Breakouts Redefined with Congestion Count

  • The difference between Congestion Grouping and the Current bar
  • Congestion Count and Systems

Classic Patterns

  • Wedges, Flags, Triangles, Head and Shoulders
  • Why they are more useful when they don’t work
  • How patterns mutate

Support and Resistance

  • Two case studies.
  • Building long term pictures of the trend to identify support and resistance
  • How the shift in Price and Time create timing points

Applications of System Building. Opportunities, Methods and Caveats

  • Time Frame diversification
  • Signal Evaluation to test exit code
  • Minimum and Maximum Adverse Excursion
  • Pre-Trade Analytics
  • Step Theory. Moving systems up through higher the time frame as the trend develops
  • Pyramiding
  • The rules of Optimization

Includes:

– Learning modules which include over 700 frames offully annotated charts with specific and detailed explanations.

– 12 hours instruction plus mentoring from instructor.2 hours, once a month over a 6 – month term.

What comes next?

This course has been designed for traders with at least an introductory knowledge of technical indicators. Because the material covered is unlike that of any other technical analysis course, this course is also suited for experienced technical traders.

This course will enable traders to think about technical indicators in a completely new way. For fundamental or ‘price action’ traders who disregard technical analysis, this course will open your eyes to seeing data in a new way; you will learn to see qualitative data from a quantitative perspective. This course will complement a macro trader’s arsenal as they become better at able at placing trades in the shorter-term time frame.

For algotraders, this course will prove to be invaluable as you learn why certain indicators are not effective as trade signals. Moreover, you will learn how to employ proprietary indicators which have proven to be highly effective over multiple time frames.