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Dive deeper into technical analysis with new indicators, support/resistance levels, RSI/MACD insights, and interactive activities. Learn about Williams %R, DMI, and Stochastics to enhance your investment strategies. Remember, technical analysis is a tool, not foolproof. Conduct your fundamental analysis too!
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Technical Analysis, Part 2 Ross Klosterman Common Cents Investment Group
Agenda • Quick recap of last week • More indicators • Another interactive activity • Conclusion
Support/Resistance • Support – price level at which demand is thought to be strong enough to prevent the price from declining further • Resistance – price level at which selling is thought to be strong enough to prevent the price from rising further
RSI/MACD • RSI- momentum oscillator that measures the speed and change of price movements • Moving Average Convergence/Divergence (MACD) – one of the simplest and most reliable indicators • Bollinger Bands – allows users to compare volatility and relative price levels over a period of time.
New Indicators! • Williams %R-A momentum indicator that works much like the Stochastic Oscillator. It is especially popular for measuring overbought and oversold levels • Wilder’s DMI (ADX)-Used to evaluate the strength of a current trend, be it up or down
Stochastics (Full)-The Stochastic Oscillator is a momentum indicator that shows the location of the current close relative to the high/low range over a set number of periods.
Final Thoughts • NOT FOOLPROOF! • *cannot be stressed enough • Do your FA • Questions? • Klosterman.53@buckeyemail.osu.edu