Technical Analysis

Technical Analysis for DSE Shareholders
From Beginner to Practical Market Analyst

Module 1 — Introduction to Technical Analysis
1.1 Understanding the Stock Market
What is a stock/share?
How the DSE market works
Buyers, sellers and market price
What causes share prices to move?
Supply and demand
Trading volume and liquidity
1.2 What is Technical Analysis?
Definition of technical analysis
The three basic principles:
Price discounts everything
Price moves in trends
History tends to repeat itself
Technical analysis vs. fundamental analysis
Technical analysis vs. news-based trading
1.3 Who Should Use Technical Analysis?
Long-term investors
Swing traders
Short-term traders
Portfolio investors
1.4 Limitations of Technical Analysis
False signals
Low-liquidity stocks
Market manipulation risks
News and unexpected events
Why technical analysis is not a guarantee of profit

Practical: Analyze 3–5 DSE stocks using basic price charts.

Module 2 — Understanding Stock Charts
2.1 Types of Charts
Line chart
Bar chart
Candlestick chart
Why candlesticks are preferred
2.2 Understanding Candlesticks
Open
High
Low
Close
Bullish candle
Bearish candle
Body and wick/shadow
2.3 Timeframes
1-minute
5-minute
15-minute
Hourly
Daily
Weekly
Monthly
2.4 Choosing the Right Timeframe
Investor vs. trader
Short-term vs. long-term
Multiple timeframe analysis
2.5 Price and Volume
Why volume matters
High volume vs. low volume
Price-volume relationship
Volume confirmation

Practical: Read and interpret DSE candlestick charts.

Module 3 — Trends, Support & Resistance

This should be one of the core modules of the course.

3.1 Understanding Market Trends
Uptrend
Downtrend
Sideways/consolidation market
Higher High (HH)
Higher Low (HL)
Lower High (LH)
Lower Low (LL)
3.2 Trendlines
Drawing an uptrend line
Drawing a downtrend line
Valid vs. weak trendlines
Trendline break
3.3 Support
What is support?
How support is formed
Strong vs. weak support
Multiple-touch support
3.4 Resistance
What is resistance?
Identifying resistance levels
Strong vs. weak resistance
3.5 Support Becomes Resistance
Breakout
Breakdown
Retest
Failed breakout
3.6 Practical DSE Analysis
Identify support/resistance on selected DSE stocks
Determine possible entry and exit areas
Module 4 — Candlestick Patterns
4.1 Single Candlestick Patterns
Doji
Hammer
Inverted Hammer
Shooting Star
Spinning Top
Marubozu
4.2 Bullish Reversal Patterns
Bullish Engulfing
Piercing Pattern
Morning Star
4.3 Bearish Reversal Patterns
Bearish Engulfing
Evening Star
Dark Cloud Cover
4.4 Continuation Candles
Inside Bar
Strong continuation candles
Consolidation candles
4.5 How to Read Candlesticks Correctly
Why a candle should not be analyzed alone
Location matters
Volume confirmation
Trend confirmation
Support/resistance confirmation

Important lesson:
A Hammer at major support can mean something very different from a Hammer in the middle of a random trading range.

Practical: Identify candlestick patterns from historical DSE charts.

Module 5 — Chart Patterns & Price Action
5.1 Reversal Patterns
Double Bottom
Double Top
Head & Shoulders
Inverse Head & Shoulders
5.2 Continuation Patterns
Triangle
Ascending Triangle
Descending Triangle
Symmetrical Triangle
Flag
Pennant
Rectangle
5.3 Breakouts
What is a breakout?
Breakout confirmation
Volume confirmation
False breakout
Breakout retest
5.4 Breakdowns
Identifying breakdowns
Support failure
Volume confirmation
False breakdown
5.5 Price Action
Reading price without depending entirely on indicators
Momentum
Rejection
Consolidation
Breakout
Pullback

Practical: Analyze historical DSE breakouts and failed breakouts.

Module 6 — Technical Indicators

This module should focus on a small number of useful indicators, rather than teaching dozens of indicators.

6.1 Moving Averages
What is a Moving Average?
SMA
EMA
20-day MA
50-day MA
100-day MA
200-day MA
Moving Average support/resistance
6.2 Moving Average Crossovers
Bullish crossover
Bearish crossover
Golden Cross
Death Cross
Advantages and limitations
6.3 RSI — Relative Strength Index
What is RSI?
Overbought
Oversold
RSI divergence
RSI trend analysis
6.4 MACD
MACD basics
Signal line
Histogram
Bullish crossover
Bearish crossover
MACD divergence
6.5 Bollinger Bands
Upper band
Middle band
Lower band
Volatility
Band squeeze
Breakout situations
6.6 Volume Indicators
Volume analysis
Volume spikes
Volume confirmation
Accumulation/distribution concepts
6.7 Avoiding Indicator Overload
Why 10 indicators don't necessarily give a better signal
Combining price + volume + 1–3 indicators

Practical: Analyze selected DSE stocks using MA + RSI + MACD + Volume.

Module 7 — Trading & Investment Strategies

Now convert technical concepts into actual decision-making.

7.1 Trend-Following Strategy
Identify trend
Wait for confirmation
Entry
Stop loss
Target
7.2 Support-Bounce Strategy
Identify strong support
Wait for price reaction
Candlestick confirmation
Entry planning
Stop loss
7.3 Breakout Strategy
Identify resistance
Wait for breakout
Volume confirmation
Entry
Stop loss
Profit target
7.4 Breakout + Retest Strategy
Breakout
Retest
Confirmation
Entry
7.5 Pullback Strategy
Identify strong trend
Wait for pullback
Identify support
Confirmation
Entry
7.6 Moving Average Strategy
Trend identification
MA crossover
Price/MA relationship
Confirmation
7.7 Combining Multiple Signals

Example:

Trend + Support + Candlestick + Volume + RSI

Students learn that a trade should ideally have confluence, rather than depending on a single indicator.

Module 8 — Risk Management & Money Management

This is essential for general shareholders.

8.1 Why Risk Management Matters
Why being right 60% of the time can still lose money
Protecting capital
Avoiding emotional decisions
8.2 Stop Loss
What is stop loss?
Fixed stop loss
Technical stop loss
Support-based stop loss
When to exit a losing position
8.3 Risk-Reward Ratio
1:1
1:2
1:3
Calculating potential risk vs. reward
8.4 Position Sizing
How much money to allocate to one stock
Portfolio concentration
Diversification
8.5 Capital Protection
Avoiding overtrading
Avoiding averaging down blindly
Avoiding revenge trading
Avoiding FOMO
8.6 Portfolio-Level Risk
Number of holdings
Sector concentration
Liquidity considerations
Cash allocation
Module 9 — DSE-Specific Technical Analysis

This is what will make the course different from generic YouTube technical-analysis courses.

9.1 Understanding DSE Price Behavior
DSE market characteristics
Liquidity differences between stocks
Large-cap vs. small-cap stocks
Trading volume considerations
9.2 Analyzing DSE Stocks

Students will learn to examine:

Price
Volume
Trend
Support
Resistance
Moving averages
RSI
MACD
Chart patterns
9.3 Sector Analysis
Banks
Pharmaceuticals
Engineering
Textiles
Fuel & Power
Cement
Insurance
Financial institutions
Other major DSE sectors
9.4 Index Analysis
DSEX
Sector/index movement
Market trend
Individual stock vs. overall market
9.5 Real DSE Case Studies

For example:

Case Study A: Stock in an uptrend
Case Study B: Stock breaking resistance
Case Study C: False breakout
Case Study D: Stock losing major support
Case Study E: Sideways/consolidating stock

Module 10 — Building Your Own Trading/Investment Plan
10.1 Creating a Stock Watchlist
How to select stocks for monitoring
Liquidity
Trend
Volume
Technical setup
10.2 Creating an Entry Plan

Before buying, ask:

Why am I buying?
Where is my entry?
Where is my stop loss?
What is my target?
What is my risk/reward?
What will invalidate my analysis?
10.3 Creating an Exit Plan
Profit target
Trailing stop
Technical exit
Stop-loss exit
10.4 Trading Journal

Record:

Date
Stock
Entry
Stop loss
Target
Reason for trade
Result
Mistake/lesson
10.5 Developing Discipline
Follow the plan
Avoid emotional decisions
Learn from losses
Review performance
Module 11 — Live Chart Analysis Workshop

This should be the most practical part of the course.

Students and instructor analyze actual DSE charts.

Workshop Activities

Exercise 1: Find the trend
Exercise 2: Draw support/resistance
Exercise 3: Identify chart patterns
Exercise 4: Identify candlestick patterns
Exercise 5: Apply RSI
Exercise 6: Apply Moving Averages
Exercise 7: Analyze volume
Exercise 8: Find possible breakout setups
Exercise 9: Identify false signals
Exercise 10: Build a complete trade/investment plan

Module 12 — Final Practical Project

Each student selects 3 DSE-listed companies and prepares a technical analysis report.

Required Analysis
Current trend
Support levels
Resistance levels
Important chart patterns
Candlestick signals
Moving averages
RSI
MACD
Volume
Possible entry zones
Possible stop-loss levels
Possible target zones
Risk/reward calculation
Overall technical view

The instructor reviews the analysis and provides feedback.

Suggested Course Structure
Module Topic Suggested Sessions
01 Introduction to Technical Analysis 2
02 Chart & Candlestick Fundamentals 3
03 Trend, Support & Resistance 3
04 Candlestick Patterns 3
05 Chart Patterns & Price Action 3
06 Technical Indicators 4
07 Practical Trading Strategies 3
08 Risk & Money Management 2
09 DSE-Specific Analysis 3
10 Investment/Trading Plan 2
11 Live Chart Workshop 3
12 Final Practical Project 1–2

Total: approximately 32–35 sessions

What Students Should Be Able to Do After Completing the Course

By the end of the course, a student should be able to:

Understand DSE price charts
Read candlestick charts
Identify market trends
Draw support and resistance
Identify important chart patterns
Understand volume
Use Moving Averages
Use RSI and MACD
Identify potential breakouts and breakdowns
Recognize false signals
Develop entry and exit plans
Calculate risk/reward
Set appropriate stop-loss levels
Build a stock watchlist
Perform technical analysis on DSE-listed companies
Maintain an investment/trading journal
Develop a disciplined decision-making process