This document provides an overview of candlestick charting and its use in developing a stock picking strategy. It first defines the basic components of a candlestick chart, including bodies and shadows, and how they represent the supply and demand forces in the market. Next, it discusses several common candlestick reversal patterns such as Doji, hammer, and engulfing patterns. It then outlines steps for observing the market, including measuring price movements and setting criteria. The document proposes combining technical analysis of candlestick charts, trends, and indicators with fundamental analysis of earnings, ratios, and news to develop a trading strategy. Finally, it briefly discusses market efficiency and basic portfolio management strategies.

1. P3
PICKING STOCKS IN THE MARKET
14
The analysis of securities
Made by: Imran Almaleh

2. PART 3
agenda:

Candlestick charting
Basics
 Reversal patterns

Observing the Market
 The trading strategy
 Extra info:

Efficiency
 Basic Portfolio Management


3. CANDLESTICK CHARTING

Basic definitions
One stick reveals the day
 The war of Supply & Demand
 +Body = +Active war
 +Shadow = +Zone of war


5. CANDLES REVERSAL PATTERNS

The Doji reversals

The Hammer & Hanging man

Bullish & Bearish engulfing

9. OBSERVING THE MARKET
Measuring the movements
 Setting criteria


The “Ami broker” software

10. PUTTING IT ALL TOGETHER
(THE TRADING STRATEGY)

Technical:
1.
2.
3.

Filter: Down-trending stocks
CCI, RSI, MACD
Candlestick chart
Fundamental:
4.
5.
6.
DPS, ROA, ROE trend
Earnings trend
News feed

11. Extra Subjects
Efficiency
Portfolio
management

12. EFFICIENCY

Market efficiency
The impact of information
 The speed of impact
 Predictability of stock movements


Stock efficiency

13. PORTFOLIO MANAGEMENT
Market Phase:
Portfolio Contents:
Objectives:
Bull – Market
Aggressive
Growth stocks
Large capital
gains
Sideways
Balanced
Growth stocks &
international trading
Capital gains &
High income
Bear - Market

Management
style:
Conservative
Bonds &
Preferred stocks
Preserve Capital
Finding the right Pattern
Inv. H&S+Dbl. bottoms for Bull-market
 H&S+Dbl. tops for Bear-market


14. REFERENCES

WEB:





stockcharts.com
dse.sy
Audicapitalsyria.com
Investopedia.com
BOOKS:

Trading to win the psychology of mastering the markets (Kiev)

Technical analysis explained (Pring)
Technical analysis for the rest of us (Pesolese)
Japanese Candlestick Charting Techniques (Nison)
Contemporary corporate finance (Moyer, McGuigan, Kretlow)




15. THANKS FOR ATTENDING
course created by: IMRAN ALMALEH