mirror of
https://github.com/autistic-symposium/mev-toolkit.git
synced 2025-08-18 02:50:31 -04:00
257 lines
6.6 KiB
Markdown
257 lines
6.6 KiB
Markdown
# Technical analysis
|
|
|
|
<br>
|
|
|
|
## What's technical analysis
|
|
|
|
* uses trading data to analyse and predict price patterns
|
|
* gives us data points to compare and contrast
|
|
* uses chart patterns, price data, trading volume and indicators
|
|
* allows us to follow a systematic strategy that can be improved
|
|
* cannot predict the future
|
|
|
|
|
|
<br>
|
|
|
|
---
|
|
|
|
## Candlestick charts
|
|
|
|
* data rich trading analysis
|
|
* time and price details
|
|
* traders use candlestick chat patterns to antecipate the future
|
|
* show market high and low for a given time period
|
|
* each candle is a period in time
|
|
* tells: open/close (body) high/low (wick) for a period of time
|
|
|
|
<br>
|
|
|
|
<p align="center">
|
|
<img src="https://user-images.githubusercontent.com/1130416/172071731-4cfd9c34-e7c9-4bff-84b1-ec3144ed7516.png" width="20%" align="center" style="padding:1px;border:1px solid black;" >
|
|
<img src="https://user-images.githubusercontent.com/1130416/172071770-3cfa971d-28bd-4532-bd48-324a256091b8.png" width="20%" align="center" style="padding:1px;border:1px solid black;" >
|
|
|
|
</p>
|
|
|
|
<br>
|
|
|
|
### Hammer pattern
|
|
|
|
* bullish pattern
|
|
* sellers drove price lower during the day
|
|
* buyers came in and the price finished higher
|
|
* will continue tomorrow?
|
|
* where are open, close, high, low?
|
|
|
|
|
|
<br>
|
|
<p align="center">
|
|
<img src="https://user-images.githubusercontent.com/1130416/172071878-e34d61ca-61ba-4ba0-b2b5-7f75cd8efa4a.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
|
|
</p>
|
|
|
|
|
|
<br>
|
|
|
|
### Shooting star pattern
|
|
|
|
* bearish pattern
|
|
* buyers drove price high
|
|
* sellers won and price fell lower
|
|
* will this continue tomorrow?
|
|
|
|
|
|
<br>
|
|
<p align="center">
|
|
<img src="https://user-images.githubusercontent.com/1130416/172071957-7c5ff9f4-957a-4cb8-89b1-c091cf4c4cc0.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
|
|
</p>
|
|
<br>
|
|
|
|
### Bullish engulfing pattern
|
|
|
|
* bullish pattern
|
|
* bullish candlestick "engulfed" the bearish candlestick
|
|
* represents a strong reversal in the price action
|
|
* will continue tomorrow?
|
|
|
|
<br>
|
|
<p align="center">
|
|
<img src="https://user-images.githubusercontent.com/1130416/172072021-91b32a2a-08e8-4c68-9756-111ae05764b1.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
|
|
</p>
|
|
<br>
|
|
|
|
### Bearish engulfing pattern
|
|
|
|
* bearish pattern
|
|
* bearish candlestick engulfed the bullish candlestick
|
|
* represents a string reversal in the price action
|
|
* will continue tomorrow?
|
|
|
|
<br>
|
|
<p align="center">
|
|
<img src="https://user-images.githubusercontent.com/1130416/172072097-e9058226-65b4-43ff-a017-f2a235691fc6.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
|
|
</p>
|
|
<br>
|
|
|
|
----
|
|
|
|
## Chart patterns
|
|
|
|
* used in conjuction with candlestick charts
|
|
* longer-term analysis of market movements
|
|
* bullish and bearish patterns
|
|
* used with day trading and swing trading
|
|
* dont tell about longer term trends
|
|
|
|
|
|
### Double top
|
|
|
|
* bearish pattern
|
|
* buyers tried wtice to push price higher
|
|
* buyers unable to push price higher
|
|
* price has no moment at this level
|
|
* buyers run ot of steam
|
|
* sellers are in the market
|
|
|
|
|
|
|
|
<br>
|
|
<p align="center">
|
|
<img src="https://user-images.githubusercontent.com/1130416/172072239-54e95e3f-df11-4ec9-92a2-737ec05c1fd9.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
|
|
</p>
|
|
<br>
|
|
|
|
### Double bottom
|
|
|
|
* bullish pattern
|
|
* sellers came in twice
|
|
* price found support of buyers twice
|
|
* buyers happy to pay up
|
|
* sellers may run out and buyers need to pay more
|
|
* buyers are in the market
|
|
|
|
|
|
|
|
|
|
<br>
|
|
<p align="center">
|
|
<img src="https://user-images.githubusercontent.com/1130416/172072325-c19f5111-abf3-4c38-8e18-9a1e3526ea11.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
|
|
</p>
|
|
<br>
|
|
|
|
|
|
### Asceding triangle
|
|
|
|
* charts never trade in a straight line
|
|
* charts trend
|
|
* highs and lows are important
|
|
* consolidation is imporant
|
|
* higher highs or higher lows is bullish
|
|
* narrowing of a range can preceed a breakout
|
|
|
|
|
|
<br>
|
|
<p align="center">
|
|
<img src="https://user-images.githubusercontent.com/1130416/172072378-59cffb28-7589-44fc-8e54-b040ec239496.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
|
|
</p>
|
|
<br>
|
|
|
|
|
|
---
|
|
|
|
|
|
## Trends
|
|
|
|
|
|
* we can't trade from patterns all the time, they are quite rare
|
|
* trends patterns will guide us more often
|
|
* patterns can be housed within trends
|
|
* if we can find the trend, we can ride the trend for profit
|
|
|
|
<br>
|
|
|
|
### Asceding wedge - higher lows
|
|
|
|
|
|
<br>
|
|
<p align="center">
|
|
<img src="https://user-images.githubusercontent.com/1130416/172072540-324afc3d-0b31-4ffd-ab4f-96a829d244bf.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
|
|
</p>
|
|
<br>
|
|
|
|
### Desceding wedge - lower highs
|
|
|
|
|
|
<br>
|
|
<p align="center">
|
|
<img src="https://user-images.githubusercontent.com/1130416/172072564-59a193ef-f374-4924-8c0c-ddda21487675.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
|
|
</p>
|
|
<br>
|
|
|
|
### Consolidation
|
|
|
|
* give us a strong area of trade where traders have been before
|
|
* area in the chart moving sideways
|
|
* we can use consolidation as a guide for our entry/exit points
|
|
* sometimes preceed breakup
|
|
* where buyers/sellers are at equilibrium and can't last forever
|
|
* use these levels for our stop loss levels
|
|
|
|
<br>
|
|
<p align="center">
|
|
<img src="https://user-images.githubusercontent.com/1130416/172072655-e0b13963-4b68-4641-9c6b-888a4fc9a5f1.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
|
|
</p>
|
|
<br>
|
|
|
|
### Support and resistance
|
|
|
|
* support and resistance are simply significant price levels
|
|
* resistance can become support if a price breaks through that level in an uptrend
|
|
* vice versa for a downtrend
|
|
|
|
|
|
### Moving averages
|
|
|
|
* SMA: arithmetic mean of prices over a given time period
|
|
* EMA: weighted and give more importance to recent prices
|
|
|
|
### Relative strength index (RSI)
|
|
|
|
* plots the relative strength of the price compared to previous prices
|
|
* momentum indicator
|
|
* above 70: price is relatively expensive (overbought)
|
|
* below 30: price is relatively cheap (oversold)
|
|
* can't predict how the price will change in the future
|
|
|
|
### Average true range
|
|
|
|
* measure of daily price volatility
|
|
* tell us the true amount the price could move in a given day
|
|
* largest probably move for one day based on previous data
|
|
* can be used to set our stop loss and give the trade some breathing room
|
|
|
|
|
|
----
|
|
|
|
|
|
## How to trade with trends
|
|
|
|
1. Identify the market trends
|
|
2. Ask where are the main areas of trade
|
|
- where is support and resistance?
|
|
- any chart pattern?
|
|
3. Make your entry based on the daily trade action
|
|
- is the candlestick telling us that the trade will go in the direction of our trade?
|
|
- is the trade bullish or bearish based of candlestick patterns?
|
|
|
|
|
|
### Trading tools:
|
|
|
|
* [Tradingview](https://www.tradingview.com/)
|
|
* [Tokenmetrics](https://tokenmetrics.com/)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|