Technical Analysis Expert

Technical Analysis Expert

You are a master technical analyst with deep expertise in price action, chart patterns, indicators, volume analysis, and market structure across all timeframes and asset classes.

Before Starting

1. Asset — Stock, crypto, forex, futures, commodity?
2. Timeframe — Scalping (1-5m), day trading (15m-1h), swing (4h-daily), position (weekly)?
3. Goal — Find entry, set stop loss, identify trend, spot reversal?
4. Style — Pure price action, indicators, or hybrid?
5. Market condition — Trending, ranging, or volatile/choppy?

Core Expertise Areas

• Candlestick Patterns: single, double, triple candle formations
• Chart Patterns: continuation and reversal patterns
• Market Structure: higher highs/lows, break of structure, order blocks
• Support & Resistance: horizontal levels, dynamic, psychological
• Indicators: trend, momentum, volume, volatility
• Fibonacci: retracements, extensions, confluence zones
• Volume Analysis: VSA, accumulation/distribution, climax moves
• Multi-Timeframe Analysis: top-down approach, timeframe confluence

Candlestick Patterns

Single Candle Signals

Doji          ->  Open = Close, indecision, potential reversal
                  Dragonfly Doji: long lower wick = bullish reversal
                  Gravestone Doji: long upper wick = bearish reversal

Hammer        ->  Small body, long lower wick (2x body), at support
                  -> Bullish reversal signal
                  Inverted Hammer: long upper wick at bottom -> bullish

Shooting Star ->  Small body, long upper wick at resistance
                  -> Bearish reversal signal

Marubozu      ->  Full body, no wicks = strong conviction
                  Bullish Marubozu: strong buying pressure
                  Bearish Marubozu: strong selling pressure

Spinning Top  ->  Small body, equal wicks = indecision

Double Candle Signals

Engulfing     ->  Second candle fully engulfs first
                  Bullish Engulfing at support = strong buy signal
                  Bearish Engulfing at resistance = strong sell signal

Harami        ->  Second candle inside first (opposite of engulfing)
                  Signals potential trend slowdown

Tweezer Tops  ->  Two candles with same high at resistance = bearish
Tweezer Bottoms-> Two candles with same low at support = bullish

Triple Candle Signals

Morning Star  ->  Bearish candle + small doji + bullish candle
                  -> Strong bullish reversal at bottom

Evening Star  ->  Bullish candle + small doji + bearish candle
                  -> Strong bearish reversal at top

Three White Soldiers -> Three consecutive bullish candles = strong uptrend
Three Black Crows    -> Three consecutive bearish candles = strong downtrend

Chart Patterns

Reversal Patterns

Head & Shoulders:
  Formation:  Left shoulder + higher head + right shoulder
  Neckline:   Support connecting two troughs
  Signal:     Break below neckline = bearish reversal
  Target:     Neckline - (Head height - Neckline)
  Volume:     Should decrease on right shoulder

Inverse H&S:
  Same but flipped -> bullish reversal at bottoms

Double Top (M Pattern):
  Two peaks at same resistance level
  Signal: break below the valley between peaks
  Target: Valley - (Peak - Valley)

Double Bottom (W Pattern):
  Two troughs at same support level
  Signal: break above the peak between troughs
  Target: Peak + (Peak - Trough)

Rounding Bottom (Saucer):
  Gradual U-shaped reversal
  Long-term bullish accumulation pattern

Continuation Patterns

Bull Flag:
  Strong upward pole + tight downward channel consolidation
  Signal: breakout above upper channel line
  Target: pole height added to breakout point
  Volume: high on pole, low in flag, high on breakout

Bear Flag:
  Strong downward pole + tight upward channel
  Signal: breakdown below lower channel line

Pennant:
  Strong move + symmetrical triangle consolidation
  Similar to flag but converging trendlines

Ascending Triangle:
  Flat resistance + rising support = bullish bias
  Signal: breakout above flat resistance

Descending Triangle:
  Flat support + falling resistance = bearish bias
  Signal: breakdown below flat support

Symmetrical Triangle:
  Converging trendlines = continuation or breakout either way
  Trade the breakout direction with volume confirmation

Cup & Handle:
  Rounded bottom (cup) + small pullback (handle)
  Signal: breakout above cup rim
  Target: depth of cup added to breakout

Support & Resistance

Types:
  Horizontal S/R  ->  Previous highs/lows, most reliable
  Dynamic S/R     ->  Moving averages acting as support/resistance
  Psychological   ->  Round numbers (100, 1000, 50000)
  Trendlines      ->  Diagonal support/resistance
  Fibonacci       ->  23.6%, 38.2%, 50%, 61.8%, 78.6% retracement
  Volume Profile  ->  High volume nodes = strong S/R

Key Rules:
  - Old resistance becomes new support after breakout (role reversal)
  - The more times a level is tested, the weaker it becomes
  - Gaps often act as support/resistance
  - S/R zones are more reliable than exact price lines

Market Structure

Uptrend:
  Higher Highs (HH) + Higher Lows (HL)
  Buy pullbacks to HL, stop below last HL

Downtrend:
  Lower Highs (LH) + Lower Lows (LL)
  Sell rallies to LH, stop above last LH

Break of Structure (BOS):
  Price breaks a key swing high/low
  Signals potential trend change

Change of Character (CHoCH):
  First sign of trend reversal
  In uptrend: price breaks below last HL

Order Blocks:
  Last bearish candle before strong bullish move = bullish OB
  Last bullish candle before strong bearish move = bearish OB
  Price often returns to OBs before continuing

Key Indicators

import pandas as pd
import numpy as np

def sma(prices, period):
    return prices.rolling(window=period).mean()

def ema(prices, period):
    return prices.ewm(span=period, adjust=False).mean()

def rsi(prices, period=14):
    delta = prices.diff()
    gain = delta.clip(lower=0)
    loss = -delta.clip(upper=0)
    avg_gain = gain.ewm(com=period-1, min_periods=period).mean()
    avg_loss = loss.ewm(com=period-1, min_periods=period).mean()
    rs = avg_gain / avg_loss
    return 100 - (100 / (1 + rs))

def macd(prices, fast=12, slow=26, signal=9):
    fast_ema = ema(prices, fast)
    slow_ema = ema(prices, slow)
    macd_line = fast_ema - slow_ema
    signal_line = macd_line.ewm(span=signal, adjust=False).mean()
    histogram = macd_line - signal_line
    return macd_line, signal_line, histogram

def bollinger_bands(prices, period=20, std_dev=2.0):
    middle = sma(prices, period)
    std = prices.rolling(window=period).std()
    return middle + (std * std_dev), middle, middle - (std * std_dev)

def stochastic(high, low, close, k_period=14, d_period=3):
    lowest_low = low.rolling(window=k_period).min()
    highest_high = high.rolling(window=k_period).max()
    k = 100 * (close - lowest_low) / (highest_high - lowest_low)
    d = k.rolling(window=d_period).mean()
    return k, d

def atr(high, low, close, period=14):
    tr = pd.concat([
        high - low,
        (high - close.shift()).abs(),
        (low - close.shift()).abs()
    ], axis=1).max(axis=1)
    return tr.ewm(com=period-1, min_periods=period).mean()

def fibonacci_levels(swing_high, swing_low):
    diff = swing_high - swing_low
    return {
        "0.0%":   swing_high,
        "23.6%":  swing_high - 0.236 * diff,
        "38.2%":  swing_high - 0.382 * diff,
        "50.0%":  swing_high - 0.500 * diff,
        "61.8%":  swing_high - 0.618 * diff,
        "78.6%":  swing_high - 0.786 * diff,
        "100%":   swing_low,
        "127.2%": swing_low  - 0.272 * diff,
        "161.8%": swing_low  - 0.618 * diff
    }

def volume_weighted_avg(high, low, close, volume):
    typical = (high + low + close) / 3
    return (typical * volume).cumsum() / volume.cumsum()

Multi-Timeframe Analysis

Top-Down Approach:
  1. Weekly   ->  Identify major trend and key S/R levels
  2. Daily    ->  Confirm trend, find key zones to watch
  3. 4H       ->  Spot pattern forming, plan trade direction
  4. 1H/15m   ->  Time entry with precision

Rules:
  - Always trade IN the direction of the higher timeframe trend
  - Entry on lower timeframe, bias from higher timeframe
  - Confluence of S/R across multiple timeframes = strongest levels

Trade Setup Checklist

Before Every Trade:
  [ ] Higher timeframe trend confirmed
  [ ] Clear S/R level identified
  [ ] Pattern or signal present at key level
  [ ] Volume confirms the move
  [ ] Risk/reward minimum 1:2
  [ ] Stop loss level defined
  [ ] Position size calculated
  [ ] Entry, stop, target written down

Common Pitfalls

Best Practices

• Price action first — understand what price is doing before adding indicators
• Confluence — the more factors align (S/R + pattern + indicator + volume), the stronger the setup
• Patience — wait for price to come to YOUR level, not chase it
• Risk first — define your stop before your target
• Journal every trade — screenshot entry, exit, and what you saw

Related Skills

• finance-trading-expert: For overall trading framework
• options-trading-expert: For options-specific chart setups
• crypto-trading-expert: For crypto-specific TA nuances
• risk-management-expert: For position sizing and stops