Table of Contents
I.Introduction1

II.The Basics3
Chart Construction 3
Bar 3
Candlestick 3
Line 3
Point and Figure 4
Market Profile™ 5
Cycles 6
III.Trend Lines and Channels7
Trend lines 7
Channels 8
Fan Lines 9
Speed Lines 10
Gann Lines 11
IV. Chart Patterns12
Traditional Reversal Patterns 12
Head and Shoulders 12
Triple Top/Bottom 14
Double Top/Bottom 15
Saucer 16
Broadening Pattern 17
Diamond 17
V-Reversal 18
Key Reversal 18
Traditional Continuation Patterns 19
Triangles 19
Flag 21
Pennant 21
Wedge 22
Rectangle 23
Gaps 24
Global Markets Economic Research
Understanding Technical Analysis March 2004
V.Volume and Open Interest25
Volume 25
On Balance Volume (OBV) 25
Advance/Decline Indicators 26
Open Interest (OI) 26
Sentiment Indicators 26

VI. Moving Averages27

VII.Oscillators29
Rate of Change 29
Relative Strength Index (RSI) 30
Stochastic 30
Moving Average Convergence Divergence (MACD) 31
VIII. Trading Systems33
Bollinger Bands 33
Elliott Wave Theory 34
Directional Movement 37
Parabolic Stop and Reverse 38
IX.Japanese Technical Analysis40
Candlestick Patterns 40
Ichimoku Kinko Hyo 43