The presentation provided an overview of traditional technical analysis tools and their common pitfalls. It then introduced Market Profile and Order Flow Analysis as alternative approaches. Specifically: 1) It reviewed tools like patterns, indicators, and moving averages and discussed frequent problems like false signals, unclear entry/exit levels, and curve fitting. 2) It then introduced Market Profile and described how it organizes price data and key concepts like balance vs imbalance. 3) Order Flow Analysis was also introduced, noting it analyzes buyer and seller activity levels to identify aggression and trends. Examples of both approaches were shown to illustrate how they help avoid pitfalls of traditional technical analysis.

1. Presentation - I
NEW PERSPECTIVE ON TRADITIONAL TECHNICAL
ANALYSIS PROBLEMS AND SOLUTIONS
By Dean
www.getthatradingedge.in

2. Disclaimer
• Information shared here is not a trading recommendation, and we are
not a business of providing any.
• All information shared here is strictly for educational purposes only.
• Please use your discretion while acting on the information shared
here.
• We will not be responsible for any resulting profits or losses.
• Please consult your registered financial advisor before you make any
trading and investment decision.

3. Note
• In case of technical problems the webinar will be rescheduled at a
later date.
• Please post your questions in the chat window, I would cover them at
the end of the presentation if time permits, else they will be covered
in a separate QnA sessions for all the Slack Group Members.
• This webinar is being recorded and will be available on
www.BellTPO.com for a limited period of time.

4. Objective
• To review different Traditional Technical Analysis (TTA) tools.
• To look into the pros and cons of these tools.
• To look into common pitfalls that these techniques have.
• Get introduced to Market Profile (MP) and Order Flow Analysis (OFA).
• See how MP and OFA can help you avoid some of the pitfalls of TTA,
examples.
• Set the stage for building a deeper understanding of MP and OFA
concepts in upcoming webinars.

5. Common TTA Tools
• Pattern Recognition
• Classical Technical Analysis
• Books – Edwards and Magee
• Trend Lines and Channels
• Indicators
• RSI, STS, MACD, etc
• Books – Martin Pring
• Moving Averages
• Elliott Waves – Robert Prechter and/or Glen Neely
• Support and Resistances, etc…..

6. Common Trading Techniques
• Break Out (BO) / Break Down (BD) Trades
• Fading BO/BD
• MA Crossovers
• Indicators
• RSI – Overbought/Oversold Levels, Divergences
• MACD – Crossovers, Divergences
• Classical Patterns
• Head and Shoulders
• Pennants
• Flags
• Double Tops/Bottoms
• Advanced Pattern Recognition
• Elliott Waves
• Harmonic Patterns

7. BO / BD Trades
• We will use Trend Lines, Support/Resistances.
• A support once broken becomes a resistance and vice versa.
• Common Problems
• A TL has to be redrawn many times due to False BO/BD
• Support/Resistances are not followed to the tick,
• Sometimes they are not reached.
• Another times they are broken and then price reverses.
• Unclear levels of execution – Entry/Exit/SL.

10. Moving Average Cross Overs
• 13 and 21 Day Exponential Moving Averages are chosen.
• Signals generated when Moving Averages cross one another.
• Fast Crossing Slow from Below – Buy
• Fast Crossing Slow from Above – Sell
• Common Problems
• Late Signals
• False Signals
• Whipsaws
• Curve Fitting

12. Indicators
• Chosen RSI and MACD for illustrations.
• RSI (Relative Strength Index)
• Overbought / Oversold Levels
• Divergences
• MACD
• Crossovers
• Zero Line Xover
• Fast – Slow Line Xover
• Divergences

13. Indicators
• Common Problems
• Late Signals
• False Signals
• Whipsaws
• Persistent OB/OS states
• Curve Fitting
• Not all markets are alike
• Indicators suited to a particular market condition will work during that
condition and fail during others.
• Different indicators are suited to different market conditions,
• RSI – Sideways Markets
• MACD – Trending Markets

15. Classical Chart Patterns
• Flags, Pennants, Head and Shoulders (HnS) example shown on chart.
• Flags and Pennants are continuation patterns.
• HnS is a reversal pattern.
• Common Problems
• Unclear levels of execution
• Whipsaws
• False Signals
• Very difficult to standardize

17. Recap - Common Pitfalls for TTA
• False Signals / Whipsaws
• Persistent OB/OS states
• Unclear Entry Levels
• Unclear Exit Levels
• Unclear Invalidation Levels
• Prone to Curve Fitting
• Incomplete Information

18. Welcome The Solution
Market Profile (MP)
And
Order Flow Analysis (OFA)

19. Market Profile

20. Order Flow

21. What do the letters mean?

22. How is data organized in MP?

23. MP Core Concepts
• Price is an Advertising Mechanism.
• Time is the Regulator.
• Volume measures Degree of Success of an auction.
• 3 Basic Principles
• Balance vs Imbalance
• Acceptance vs Rejection
• Change vs Continuation

24. Order Flow Core Concepts
• Every Buyer is matched by a Seller and Vice Versa.
• OFA Basic Principles
• Aggression vs Intention
• Active vs Passive Activity
• Stop Hunts
• Incorporating Context from TTA or MP.

25. MP Examples
• Early May 2016 in Nifty
• BREXIT Low on 24th June 2016 in Nifty
• Sharp rally after US Elections and Note Ban on 10th Nov 2016 on Bank
Nifty

27. Nifty – Early May 2016 Lows

28. Nifty – Early May 2016 Lows

29. Nifty – BREXIT Lows

30. Bank Nifty – US Elections and Note Ban Day

32. How does MP helps in trading?
• Helps in providing context for current market development.
• Adds a dimension to bar charts.
• Helps in identifying advantageous trade locations for better risk
management.
• Reduces the stress in trading.

33. How does OF helps in trading?
• First it tells us who is being more aggressive at a given price level.
• Next it tells us whether higher or lower prices are bringing in more
traders in the market or are higher and lower prices are discouraging
activity.
• Also it tells us when opposing activity is becoming stronger and
overpowering the current trend.
• Lets see an example on the charts.

34. Objective
• To review different Traditional Technical Analysis (TTA) tools - Done
• To look into the pros and cons of these tools - Done
• To look into common pitfalls that these techniques have - Done
• Get introduced to Market Profile (MP) and Order Flow Analysis (OFA).
• See how MP and OFA can help you avoid some of the pitfalls of TTA,
examples – Glanced over Core Concepts of MP and OFA
• Set the stage for building a deeper understanding of MP and OFA
concepts in upcoming webinars – Discussed how MP and OFA helps
us in Trading

35. The Sole Objective of any Market Analysis
Whereisthemarkettryingtogo?
Isitdoingagoodjobofgettingthere?

36. Thank You