harting Foundation, Technical Analysis and Strategies ... Volume and Volume Profile • Trading Time Frames • Entries, Exits and Protective stops • Strategies • Creating a Trading

The following pages include samples from the Ghost Traders color 700 page comprehensive “Candlestick Charting Foundation, Technical Analysis and Strategies” course. This 40 hour course is available live

on-line privately, in person at our facility or at your home. Special rates apply for small and larger groups.

Contact us for a personal walk thru [email protected] Phone 630 366 1810

Course Synopsis

• The three key elements of trading• Simple Mechanics• Candlesticks explained• Candlestick Development• Support and resistance• Pivots, Consolidations and Gaps• Moving Averages• Volume and Volume Profile• Trading Time Frames• Entries, Exits and Protective stops• Strategies• Creating a Trading Plan• Risk Management• Economic News• Assembling the Key components• Trends• Trend Damage• Candlestick Patterns

• Heikin Ashi Candles• Retracements • Overbought and Oversold Conditions• Scanning Techniques• Trading Platforms• Mobile Devices• Indicators and Oscillators• The Four Questions• Time, Price, Volume and Value• Keeping It All Simple (Less is More)• Major Market Sectors• Average Daily Volume• Dividends, Earnings and IPO’s• Market Participants• Finding a Time Frame that fits your LifestyleDay, Swing, Intermediate & Core Traders• What will you trade:Stocks, Options or Futures

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• Opening your trading account • Downloading your “Sierra Chart” and “Think or “Swim trade

platforms• Setting up your Charts • Using Your Sierra Chart Platform• Creating stock scanning templates within the “Think or Swim”

trading platform.• Setting up Bracket Orders for Entries with Stops and Targets• Using the Sierra Chart and Think or swim trade platform. • Use of Think or Swim for monitoring and trading on mobile

devices

Ghost Traders offers assistance with the following:Contact us for more details: [email protected] or call 630 366 1810

Included in Our Course

• Informative Videos• Ghost Traders Custom Chart Books• 700 Page Color Course Book• Easy Analysis Templates for Sierra Charts

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Course and website chart examples and

preferred charting software

Preferred broker accountand

live trading platform

Website asset data economic calendar and

interactive charts

In depth technical analysis & fundamentals

on our stock search page provided by

The Think or Swim trade platform “Windows or Mac”

The Sierra Chart trade platform “Available for Windows only”

Copyright © GHOST TRADERS All Rights Reserved


https://www.thinkorswim.com/t/innovation.html

http://www.sierrachart.com/

https://www.tradingview.com/

https://www.macroaxis.com/


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Expanded view of the Sierra Chart platform with “Market Profiles” Contact us for a free live demonstration [email protected]




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Expanded view of the “Sierra Chart” platform Candlesticks with “Volume Profiles”Contact us for a free live demonstration [email protected]




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Expanded view of the “Think or Swim” platform with watch list and flexible gridContact us for a free live demonstration [email protected]




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Expanded view of the “Think or Swim” platform with Candles and Trade order ladderContact us for a free live demonstration [email protected]




This class is for the trader or the investor:

• Our candlestick class teaches the novice, experienced or investor simple but effective concepts for trading or investing in any time frame.

• We will show you why we prefer candlestick charting over other methods used to forecast future price movements in the markets.

• Our intention is not to overwhelm you.

• There is so much information available today through the internet, books, webinars and live seminars, many become unsure of what they need learn to become a trader or investor.

• Trying to learn all that is out there can be compared to trying to take a sip from a fire hose.

• We will provide you what we believe is necessary to make reliable trading or investing decisions. Ghost Traders does not believe in information overload.


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DisclaimerTrading has large potential rewards, but also potential risk. You must be aware of the risks and be

willing to accept them in order to invest in the markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to buy/sell. No representation is being made that any

account will or is likely to achieve profits or losses. We are not financial advisors nor do we offer financial advice. We suggest you contact your own financial adviser before investing in any market.

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Why do people buy stocks?

• Investors buy stocks for various reasons. Here are a few:• Capital appreciation - occurs when a stock rises in price• Dividend payments – If the company pays dividends

company distributes a portion of its earnings to stockholders

• Stock holders can vote shares and influence the company• Owning a stock means you own a piece of the company• Investing money can grow faster than having money in a

savings account• Your investment is working for you 24 hours a day• As the business grows your stock value increases. • For the last 40 years, the stock market has returned

almost 10% annually

The Standard & Poor's 500, often abbreviated as the S&P 500, or just "the S&P", is an American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ.




You can become a great chart reader whether you are a trader or investor..

1. Locate areas where traders typically buy and sell.

2. Identify the better instruments to trade.

3. Spot trend changes in all time frames.

4. Recognize patterns as they are developing.

5. Communicate confidently with your financial adviser.

6. Anticipate what other trader sentiments are.

7. Identify other traders commitment to move the market directionally.

8. Depend on yourself, not the news or opinions for trading decisions.

9. Identify market participants “commercial and day traders”

10. Make the right trades at the right time.

Understanding your charts will give you the ability to:

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Once you become a good chart reader you can choose to trade stocks, (ETF’s Exchange Traded Funds), options, futures or bonds.

Charts work the same in any time frame and with any instrument.You have choices.




There is valuable information in your charts.

• Ghost Traders use very little to enhance their charts.

• We keep our charts clean and uncluttered.

• Our focus is on market momentum, not multiple indicators and oscillators.

• The market is about time, price and volume and most of all value.

• We react to what the chart is telling us, not opinions.

• The market doesn’t care about our opinions, nor does it care how smart we are.

We must learn to rely our charts.

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We will begin by defining these important elements.

Technical Analysis

Psychological AnalysisFundamental Analysis

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• Candlesticks form in many sizes and shapes.

• Each Candle is made up of people’s perspective of the market in a particular frame. There are many different time frames for traders or investors to choose from.

• A candle in a 5 minute chart takes five minutes to complete, then the next candle begins to form.

• A daily candle takes one day to complete before the next candle begins to form. As they form they begin to create patterns.

• When a green candle is complete, it indicates the close is higher than the open. The buyers (Bulls) are in control.

• When a red candle is completed, it simply means that the close is lower than the open. The sellers (Bears) are in control.

• Green says the Bulls won the battle and red says the Bears won.

• Sounds simple but there is more about candles we need to know.

Candles tell a story and paint a picture of market development.

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Candlesticks consists of an open, a high, a low and a close.

HighHigh

LowLow

close

openclose

open

The Bulls win The Bears win

If the candle closes higher than the open the candle will be green.

If the candle closes lower than the open the candle will be red.

Wick/tailWick/tail

Wick/tailWick/tail

Body Body

Note:Wicks/tails show the

High and the low.

The body shows the open and the close.


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Bullish and Bearish Candles

Most Bullish

Most Bearish

Very Bullish

Very Bearish Normal Bearish

Neutral Less Bullish

Less BearishNeutral

Normal Bullish

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The Doji

Bullish no color Bearish no color No winners opened and closed at 50%

Bottoming and topping tails can offer traders good trading opportunities depending on where they occur.

A doji form when the openand close are virtually equal.

Gravestone dojiDragonfly doji

A doji can form in various sizes.

Depending where they occur, a doji can signal a possible reversal in trend.

Doji

A doji does not have a candlestick body.

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The Four Important Trading Time Frames for Traders or Investors.

Long Term

Trading

IntermediateTrading

Swing

Trading

(ShortTerm)

Day Trading

Micro Trading Scalping

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The Four Primary Trading Time Frames

1. Long term: Yearly charts - approximately 240 days per barMonthly charts - approximately 20 days per bar

Long term yearly charts are typically used for cyclical analysis and long term trading.

Long term monthly charts are helpful for identifying tradable cycles for long term trades. Typically lasts six months to several years.

2. Intermediate term: Weekly charts - each bar is five trading daysDaily charts – each bar is one trading day

Intermediate term weekly charts are typically used for finding entry and exit points for trades lasting one to six months.

Intermediate term daily charts are also used to identify entry and exit points trades for trades lasting one to six months. Daily charts are also used by swing traders.

3. Swing trades: (semi short term)Daily charts4 hour charts2 hour charts1 hour charts

Swing trades are a speculative activity. A trader holds positon between one and several days in an effort to profit from price pull backs and swings in the market.

4. Short term:15 minute charts5 minute charts2 minute charts

These are the favorite time frames of the day trader, micro trader and scalper.

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“Shorting the market”Shorting in the down trend

“Going long” in the marketBuying in the up trend

Buying in the up trend is sometimes referred to as taking a long position or going long.

Selling in the down trend is sometimes referred to as taking a short position, going short, selling short or shorting the market.

A trader believes a specific stock is overpriced at $50 a share. He borrows 100 shares from his broker for for $5,000.00

The stock price falls to $40.00 a share, he buys 100 shares for $4,000.00 and returns them to his broker. The broker has to give him back the $5,000.00 he borrowed for the 100 shares. The traders profit is $1,000.00 minus the brokerage fees.

On the other hand if the stock goes up in value instead of going down and the price rises to $60,00 a share, or $6,000.00, the trader has to return $6,000.00 to his broker and will end up losing $1,000.00 plus brokerage fees.

When you short you are selling something you don't own. The concept is to sell high and then buy low, as opposed to buying low then selling high.

A trader or investor believes there is value in a stock at $50.00. He buys 100 shares for $5,000.00.

He believes the stock value will rise $10.00 per share.

The stock goes up and reaches $60.00 per share. The trader sells and makes a profit of $10.00 per share making him $1,000.00 minus broker fees.

The concept is to buy low and sell high.

Bulls Bears

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Buying “Long Positions”These are the 4 key questions to ask yourself

before buying or investing.

1. Why am I buying?

2. At what price am I buying? (Entry)

3. When will I sell? (Target)

4. Where will my protective stop be? (Stop loss)

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Buying “Long Positions”1. Why am I buying? I am buying at am major support area.

I have been waiting to buy at this level.

2. At what price am I buying? (Entry) Support $62.55

3. When will I sell? (Target) My first resistance level $67.38

4. Where will my protective stop be? (Stop loss) A close below $62.50, the support zone.

Note: Before you begin trading we will explain risk capital and risk management. This will help you in determining how many shares you can afford to buy, based on your “risk capital and risk management plan.”

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Selling “Short Positions”These are the 4 key questions to ask yourself before selling (shorting).

1. Why am I selling (shorting the market)?

2. At what price am I selling (shorting)? (Entry)

1. When will I buy back (cover)? (Target)

2. Where will my protective stop be? (Stop loss)

8 EMA20 EMA50 EMA

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Selling “Short Position”1. Why am I selling (shorting the market)? The 8 and 20 EMA’s are crossing below the 50 EMA. Candle closed below the 50 EMA.

2. At what price am I selling? (shorting) (Entry) A close below the 50 EMA.

3. When will I buy back (cover my short position)? (Target)After a close above the 50 EMA

4. Where will my protective stop be? (Stop loss)A close above $55.75 or the 50 EMA

8 EMA20 EMA50 EMA

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PivotsTraders buy pivots (pullbacks) in trending markets at the moving averages.

They use the moving averages as buy zones.

Buy zones

One buy zone at the 100 EMASix buy zones at the 20 EMA

*A moving average is an indicator that shows the average value of a security’s price over a period of time. As the securities price changes, its average price moves up or down.

*An indicator is a mathematical calculation based on a security's price and/or volume. The result is used to predict future prices.

8 EMA20 EMA50 EMA

100 EMA200 EMA

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Various Gaps - HPQ

Gaps are a common occurrence in the market.

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Moving Averages

• A moving average is an indicator that shows the average value of a security’s price over a period of time.

• As the securities price changes, its average price moves up or down.

Example:

• On a five minute candlestick chart, an eight period moving average calculates the average price of the last eight, five minute candles.

• Eight candles multiplied by five minutes equals the average price over a forty minute period.

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Resistance at the Moving Averages

8 EMA20 EMA50 EMA

100 EMA200 EMA

The light brown area is the area below the 8 EMA. The blue area is the area above the 20 EMA. Some traders use this as an additional trend guide

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Trend Lines BreaksA break below the up trend line indicates that demand is decreasing and a reversal of trend may occur.

A break above the down trend line indicates that demand is increasing and a reversal of trend may occur.


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Daily Chart - Bank of America (BAC) Two Moving Averages



Daily Chart - Bank of America (BAC) Two Moving Averages and Volume Profile



Chart patterns move up, down, sideways. The more touches at the support and resistance area, the more relevant the pattern will be. Sometimes two touches

will work, but many prefer at least three.


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Rectangular channel

Rectangular channel

Descending channelAscending channel

Rising wedge

Falling wedge

Symmetrical triangle

Ascending triangle

Descending triangle


Falling wedge (Reversal)


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Descending Triangle (Continuation)

Chevron (CVX) Daily chart

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Percentage Retracements and Projections

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Entries, Targets and Stops

Entry Order: An order to buy into an asset.

Price Target: A price that, if reached, would result in a trader recognizing the best possible outcome for his or her investment. This is the price at which the trader would like to exit his or her existing position so that he or she can realize the most reward.

Stop Order: An order to buy or sell an asset when its price surpasses a particular point, thus ensuring a greater probability of achieving a predetermined entry or exit price, limiting the investor's loss or locking in his or her profit.

STOP

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Which time frame will you prefer to trade in?

Wealth Building Income Generating

• Core Trading - investing long term

• Intermediate Trading - less than a year

• Swing Trading - 2 days and up to three weeks

• Short Term - one to two days

• Day Trading - 2, 5 and 15 minute charts

• Scalping - 1, 2,3 and 5 minute charts or tick charts


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www.ghosttraders.com [email protected] Phone 630 366 1810

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Ghost Traders offers traders and investors a great value for our Candlestick and Technical Analysis course. Call us for a free walk through, consultation and pricing.

Hourly rates are available for traders with basic skills that are ready for the next step. More experienced traders may want to focus in on specific aspects of trading or investing. Call or email for more information.

Thank You, Ghost Traders

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It is proven the best way to learn is through personal mentoring. We would like to teach you to find “the right trades at the right time”.



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harting Foundation, Technical Analysis and Strategies ... Volume and Volume Profile • Trading Time Frames • Entries, Exits and Protective stops • Strategies • Creating a Trading

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