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Trading Patterns and TA Take Home Review

This document provides an overview of different types of trading and technical analysis basics. It discusses trend following, mean reversion, momentum, and high frequency trading strategies. It also defines common trading terms like bid, offer, and market making. The document outlines various chart patterns like flags, pennants, and channels. It concludes with notes about upcoming economic reports and central bank decisions that could impact markets.

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collegetradingexchange
Copyright
© Attribution Non-Commercial (BY-NC)
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Download as PPTX, PDF, TXT or read online on Scribd
96 views

Trading Patterns and TA Take Home Review

This document provides an overview of different types of trading and technical analysis basics. It discusses trend following, mean reversion, momentum, and high frequency trading strategies. It also defines common trading terms like bid, offer, and market making. The document outlines various chart patterns like flags, pennants, and channels. It concludes with notes about upcoming economic reports and central bank decisions that could impact markets.

Uploaded by

collegetradingexchange
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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c 

c 
Types of Trading and Technical Analysis Basics/Review

  




3 Trend Following Ȃ Attempting to capture money in a market that


continues to make both higher highs and higher lows; or in a
declining Dzbeardz market Ȃ Lower Lows and lower highs
3 Mean Reversion Ȃ Theory that prices revert to the mean/average on
a set timeframe. The foundation of Dzconsolidationdz
3 Momentum Ȃ Acceleration of a price move picks up fast on strong
volume. Aggressive buying and selling.
3 High Frequency Trading Ȃ Often referred to transactions that occur
under a second and controlled by algorithms. Usually they are
market making, rebate trading (SLP), scalping (ahead of big orders),
or actively trading proprietary strategies.
3 Bid Ȃ Price at which you can immediately sell
3 Offer Ȃ Price at which you can immediately buy
3 Market Making Ȃ Traders that make money buying at the bid and
selling at the offer
3 Arbitrage Ȃ Several Types: Static, Dynamic, DzStatisticaldz, Model
Independent, Model Dependent

  


^  c  
Price Based: Higher Highs/Higher
Lows or Lower Lows/ Lower Highs Indicator (Derivative of Price) Ȃ Moving
Averages and Directional Indexes

  

 [
r
cc 


Flags & Pennants [Bull and Bear] Triangles: Ascending, Descending,


and Symmetrical

  

 Î
r^ 

Horizontal Ranges Trending Channels

  

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c
 r c
 rr r
In a Trend Countertrend

  

 
    


Breakout Trade Breakout, Get in at Support and the


new inflection level

  

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Trading is about managing your risk.

c c 
May 6th 9:30 EST

  

 
May 7th 2010

c c 

  

 m
   March 23rd, 2010
Pick any stock to trade the open.

c c Must close position by 11:30 and get ready for


the close

  


 rc  3 Any questions about the ThinkorSwim
 
c
 Platform?
  3 Review of order types
r  
Market
Limit
Stop
OCO (One Cancels Other)
Trailing Stop

  


^

3 11:30 PM Ȃ Reserve Bank of Australia releases itǯs new interest rate. Expectations are
set for around a 25 basis point increase which if done would be bullish for the
currency (Buy Australian Dollars). However if they donǯt raise then, expect the
Australian Dollar to sell off dramatically, despite already high rates. The downside
will still be supported by Macro bids above .9400
3 Thursday brings the Bank of England Rate Decision and their asset purchase target.
Expectations are still for no increase in the base rate, but in light of recent CPI figures
there is a large probability that Asset Purchases will remain flat as well. The bank
wants to contain inflation and most likely will eventually raise rates.
3 That same day the European Central Bank will also be holding a press conference at
7:30. this could play a role in equities that day.
3 Friday at 8:30 is both of the empl0yment data for the US and Canada, expect
volatility on the day. An increase of 5k is expected for the United States.

  

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