Chapter 13: Charts & Technical Analysis

Charts help you understand how prices move over time. They are a key tool for identifying trends, timing decisions, and analysing market behaviour.

This guide builds on the Banks & Insurance Guide and explains how to use both basic and advanced charts on Investi.

Progress: Chapter 13 of 16

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📌 What You Will Learn

• How to use charts on Investi
• The difference between chart types
• How to use indicators like SMA, EMA, RSI, MACD
• How to avoid common technical analysis mistakes

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📈 Basic vs Advanced Charts

📊 Basic Charts

Available on company pages:
Company Pages

• Simple price view
• Quick trend analysis
• Limited controls

⚙️ Advanced Charts

Access here:
Advanced Charts

• Multiple indicators
• Flexible timeframes
• Deeper technical analysis

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⏱️ Time Controls

You can adjust the time range:

• YTD (Year to Date)
• 1M (1 Month)
• 3M
• 6M
• 1Y
• 5Y
• 10Y

Advanced charts also include:

• Day
• Week
• Month

Short timeframes → more detail
Long timeframes → bigger trends

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🖱️ Navigation Controls

• Scroll to zoom in/out
• Drag to move across time
• Use calendar selectors for precise dates

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📊 Chart Types

📉 Area Chart

• Simple visual of price movement
• Good for beginners

🕯️ Candlestick Chart

• Shows Open, High, Low, Close (OHLC)
• Used for technical analysis

Candlesticks help identify patterns and trends.

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📊 Moving Averages

Moving averages smooth price data to identify trends.

📈 Simple Moving Average (SMA)

Average price over a period.

📉 Exponential Moving Average (EMA)

Gives more weight to recent prices.

Common periods:

• 10
• 20
• 50
• 200

Short-term averages react faster.
Long-term averages show broader trends.

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📊 Bollinger Bands

Bollinger Bands measure volatility.

• Upper band
• Lower band
• Moving average (middle)

Interpretation:

• Price near upper band → potentially overbought
• Price near lower band → potentially oversold

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📉 Oscillators

📊 RSI (Relative Strength Index)

Measures momentum.

• Above 70 → overbought
• Below 30 → oversold

📊 MACD

Shows trend direction and strength.

• Crossovers indicate signals

📊 Stochastic Oscillator

Compares closing price to price range.

📊 Momentum

Measures speed of price movement.

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📉 Technical Analysis Basics

Technical analysis is based on:

• Trends
• Patterns
• Historical price data

Key ideas:

• Prices move in trends
• History tends to repeat
• Market sentiment affects price

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🧠 How to Use Charts Properly

Best practice:

1. Identify the overall trend
2. Use indicators for confirmation
3. Combine with fundamentals

Always combine charts with:

• Company Analysis
• Financial Data

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⚠️ Common Mistakes

• Using too many indicators
• Ignoring fundamentals
• Over-trading based on signals
• Assuming indicators are always correct

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🔗 Related Guides

• Company Pages
• Equities Screener
• Profit & Loss
• Glossary

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