Technical Event Educational Material

Technical Analysis has long been the domain of institutional houses and professional money managers. This is largely a result of the manually intensive nature of Technical Analysis. Now the process has been automated so that Technical Event opportunities are available to you at the click of a button. Technical Analysis is the practice of anticipating price changes of a financial instrument by analyzing prior price changes and looking for patterns and relationships in price history. Technical Event opportunities occur when a significant pattern has formed or a significant price activity has occurred in a financial instrument. Technical Event opportunities highlight price situations that may be worth considering in researching an investment activity. For each instrument, the daily and weekly charts are analyzed to identify various types of Technical Event opportunities. Some events are bullish suggesting a rising price, while others are bearish suggesting a falling price. They are organized into four Technical Event Classes based on characteristics they have in common. To learn about specific event classes and types, click on the tabs below. A linear price scale is used to identify Technical Event opportunities on daily charts, while a logarithmic price scale is used to identify Technical Event opportunities on weekly charts. To learn more about this and other terms used in the field of Technical Analysis, visit the Glossary page.

Classic Patterns
Classic is a term used to refer to a group of patterns that typically have a longer-term horizon (greater than 12 days) and which have distinct price swings such that the price swings form distinctive patterns. The names of classic patterns often reflect the shape of the formation such as the Double Top, Double Bottom, Head and Shoulders Top, Ascending Triangle and so on. Bullish: Ascending Continuation Triangle Bottom Triangle Continuation Diamond (Bullish) Continuation Wedge (Bullish) Diamond Bottom Double Bottom Flag (Bullish) Head and Shoulders Bottom Megaphone Bottom Pennant (Bullish) Rounded Bottom Symmetrical Continuation Triangle (Bullish) Triple Bottom Upside Breakout Bearish: Continuation Diamond (Bearish) Continuation Wedge (Bearish)

Descending Continuation Triangle Diamond Top Double Top Downside Breakout Flag (Bearish) Head and Shoulders Top Megaphone Top Pennant (Bearish) Rounded Top Symmetrical Continuation Triangle (Bearish) Top Triangle Triple Top

Short-term Patterns
Short-term patterns are based on the shape and relationship of the candlestick(s) or price bar(s) representing one or multiple consecutive trading days. This includes patterns such as the Hanging Man and the Gap Up. The technical event is the confirmation that the pattern has formed in the price bar(s). These Technical Event opportunities are useful for suggesting possible short-term price movement. They are also useful for supporting or refuting the possible price movement suggested by classic patterns. Short-term patterns are often considered as supplementary information. Bullish: Engulfing Line (Bullish) Exhaustion Bar (Bullish) Gap Up Gravestone (Bullish) Hammer Inside Bar (Bullish) Inverted Hammer Island Bottom Key Reversal Bar (Bullish) Outside Bar (Bullish) Two Bar Reversal (Bullish) Bearish: Engulfing Line (Bearish) Exhaustion Bar (Bearish) Gap Down Gravestone (Bearish) Hanging Man Inside Bar (Bearish) Island Top Key Reversal Bar (Bearish) Outside Bar (Bearish) Shooting Star Two Bar Reversal (Bearish)

Indicators
Indicators that are currently supported are based on moving average calculations. Bullish or Bearish:

Double Moving Average Crossover Price Crosses Moving Average Triple Moving Average Crossover

Oscillators
Oscillators are based on mathematical formulas that incorporate historical or recent prices of the stock. Bullish or Bearish: Bollinger Bands Commodity Channel Index Fast Stochastic KST (Short-term, Intermediate-term, Long-term) MACD Momentum Relative Strength Index (RSI) Slow Stochastic Williams %R

Elliott Waves
Elliott Wave Study events are recognized as eight separate wave events together forming the eight wave Elliott wave cycle. Bullish or Bearish: Wave 1 Wave 2 Wave 3 Wave 4 Wave 5 Wave A Wave B Wave C

The Recognia Technical Analysis service is provided by Recognia Inc. This service is for informational purposes only. The information contained in this service does not constitute advice or a recommendation by Kotak Securities Limited or Recognia Inc. in respect of the investment in financial instruments. Technical Event and Recognia are registered trademarks of Recognia Inc.