1.  Technical Analysis © Copyright 2012 MUTIS. All rights reserved 2012.

2.  Disclaimer The information and material provided at MUTIS is for educational purposes only and does not constitute financial product advice. The views of the speakers are their own and not those of MUTIS. MUTIS does not represent or warrant that the information or material is complete or accurate. You should consider obtaining independent advice before making any financial decisions. If you are seeking advice (including a recommendation or opinion) about a financial product you should consult a certified financial advisor. To the extent permitted by law, no responsibility for any loss arising in any way (including by way of negligence) from anyone acting or refraining from acting as a result of the information or material is accepted by MUTIS © Copyright 2012 MUTIS. All rights reserved 2012.

3.  Objective To provide the basic framework of technical analysis so as to improve financial literacy among our members and increase participation among the MUTIS community. © Copyright 2012 MUTIS. All rights reserved 2012.

4.  Why  Use of historical price action to forecast future price movements  Value lies in forecasting/anticipation © Copyright 2012 MUTIS. All rights reserved 2012.

5.  Contents  Types of chart  Support & resistance © Copyright 2012 MUTIS. All rights reserved 2012.

6.  Types of charts  Line  Bar  Candlestick © Copyright 2012 MUTIS. All rights reserved 2012.

7.  Line  Connects a single price  Uses only one of the following  Open  High  Low  Mid  Close (DEFAULT) © Copyright 2012 MUTIS. All rights reserved 2012.

9.  Line  Pros  Gives a simplistic & overall view of price  Line studies are easy to conduct  Cons  Insufficient information © Copyright 2012 MUTIS. All rights reserved 2012.

10.  Bar  Shows open high low close together © Copyright 2012 MUTIS. All rights reserved 2012.

12.  Bar  Pros  Has sufficient information  Cons  Messy © Copyright 2012 MUTIS. All rights reserved 2012.

13.  Candlestick  Has sufficient information  Highly visual  Provides sentiment analysis  Preferred chart for analysis © Copyright 2012 MUTIS. All rights reserved 2012.

16.  Candlestick  Pros  Highly visual  Provides sentiment analysis  Cons  Increased subjectivity  More information = more analysis © Copyright 2012 MUTIS. All rights reserved 2012.

20.  Candlestick  Unnecessary to know patterns and names  Patterns are either  Bullish  Bearish  Neutral © Copyright 2012 MUTIS. All rights reserved 2012.

21.  Support & Resistance  Support  Psychological price level of BUYING  Resistance  Psychological price level of SELLING  Round numbers (e.g. DJIA 10000, SP 1400) © Copyright 2012 MUTIS. All rights reserved 2012.

23.  Support & Resistance  Reminder  Value is in forecasting/anticipation  Technical analysis always looks good on hindsight  Without anticipation it has no value  Obvious only when it works out © Copyright 2012 MUTIS. All rights reserved 2012.

24.  Support & Resistance  Resistance can turn into support and vice-versa  Traders wait for the breakout of a range and buy into the breakout at the former resistance  Sellers are resistance miss out on opportunity  Same with support © Copyright 2012 MUTIS. All rights reserved 2012.

25. RESISTANCE SUPPORT

26.  Contents  Trends  Trend lines  Trend channel  Range © Copyright 2012 MUTIS. All rights reserved 2012.

27.  Trends  Uptrend  Higher High, Higher Low  Downtrend  Lower High, Lower Low  Swing points © Copyright 2012 MUTIS. All rights reserved 2012.

32.  Trend Lines  Minimum 2 touch at swing points  Extrapolate to forecast support/resistance © Copyright 2012 MUTIS. All rights reserved 2012.

34.  Trend Lines  Uptrend  Lines connect the swing lows  Downtrend  Lines connect the swing high © Copyright 2012 MUTIS. All rights reserved 2012.

36.  Trend Line  Trend lines extrapolated can provide clues to future support/resistance  Trend lines can and will always be broken in due time  Broken trend lines indicates a weakening trend © Copyright 2012 MUTIS. All rights reserved 2012.

38.  Trend Channels  Duplicate the trend line and connect it to the opposite swing points  Creates a channel that contains price (support & resistance)  Exceeding the opposite trend line is a sign of climaxes © Copyright 2012 MUTIS. All rights reserved 2012.

41. Trend Channel Overshoots

42.  Range  Also known as SIDEWAYS TREND  It is a type of trend, NOT an uptrend or downtrend  “The market is trending sideways” or “The market is range bound”  Remember there are 3 types of trend: Up, down, sideways © Copyright 2012 MUTIS. All rights reserved 2012.

45.  Range  Usually sandwiched between two price zones  Support & Resistance  Ranges provide opportunities for traders to trade extremes  Traders also identify a range and anticipate breakouts to trade © Copyright 2012 MUTIS. All rights reserved 2012.

47.  Range  Resistance can turn into support and vice-versa  Traders wait for the breakout of a range and buy into the breakout at the former resistance  Sellers are resistance miss out on opportunity  Same with support © Copyright 2012 MUTIS. All rights reserved 2012.

49.  Thank You © Copyright 2012 MUTIS. All rights reserved 2012.