Master Summary (TA + FA + Options)
A single-document overview of Technical Analysis, Fundamental Analysis, and Options Trading as covered in this repository. Use this for big-picture revision and to see how each discipline fits into a complete market-analysis framework.
1. Technical Analysis — Summary
What it is: Analysis of price and volume (and derived indicators) to identify trends, levels, and timing. Assumes that price reflects all known information and that patterns repeat.
Core concepts:
Market structure: Support/resistance, trendlines, HH/HL (uptrend), LH/LL (downtrend), break of structure (BOS), market structure shift (MSS).
Candlestick patterns: Single (Doji, Hammer, Shooting Star, Marubozu), two-candle (Engulfing, Piercing, Dark Cloud, Tweezer), three-candle (Morning/Evening Star, Three Soldiers/Crows, Inside/Outside bar).
Chart patterns: Reversal (Head & Shoulders, double/triple top/bottom, rounded); continuation (flags, pennants, triangles, rectangle, cup and handle). Breakout confirmation and volume.
Indicators: Trend (MA, EMA, VWAP, Ichimoku, Parabolic SAR); momentum (RSI, MACD, Stochastic, CCI); volatility (Bollinger, ATR, Keltner); volume (volume profile, OBV, A/D).
Advanced: Order blocks, liquidity zones, Fair Value Gaps (FVG), Wyckoff (accumulation/distribution, springs, upthrusts).
Strategies: Trend following, breakout, mean reversion, scalping, swing, position trading—each with entry/exit, stop, R:R.
Risk & psychology: Position sizing (1% risk, size = $ risk / |entry − stop|), R:R ≥ 1:2, drawdown management, discipline, journaling, trading plan, biases.
When to use: Timing entries/exits, setting stops and targets, reading short- to medium-term price behavior. Works across timeframes (intraday to position).
Full content: Technical Analysis Handbook | Revision (cheat sheets)
2. Fundamental Analysis — Summary
What it is: Analysis of financial statements, business quality, and valuation to estimate intrinsic value and assess whether a security is under- or overvalued.
Core concepts:
Financial statements: Income statement (revenue, expenses, profit); balance sheet (assets, liabilities, equity); cash flow statement (operating, investing, financing). Quality of earnings and red flags.
Key ratios: Profitability (ROE, ROA, margins); liquidity (current, quick); leverage (debt/equity); valuation (P/E, P/B, P/S, EV/EBITDA); growth (revenue, earnings growth).
Valuation: DCF (discounted cash flow), comparable multiples (P/E, EV/EBITDA), margin of safety. Fair value vs market price.
Qualitative: Management, competitive advantage (moat), industry position, growth potential, ESG and risk factors.
Value vs growth: Value = buy below intrinsic value (Graham, Buffett). Growth = focus on future earnings potential (Fisher, Lynch).
When to use: Stock selection, long-term holding conviction, avoiding overvalued or low-quality names. Complements technicals for what to trade.
Full content: Fundamental Analysis | Book Notes
3. Options Trading — Summary
What it is: Trading derivatives (calls and puts) that give the right (not obligation for long options) to buy or sell an underlying at a set strike by expiration. Used for leverage, hedging, and structured payoffs.
Core concepts:
Definitions: Call = right to buy; Put = right to sell. Strike, expiration, premium. In-the-money (ITM), at-the-money (ATM), out-of-the-money (OTM). American vs European style.
Greeks: Delta (sensitivity to underlying); Gamma (rate of change of delta); Theta (time decay); Vega (sensitivity to volatility). Used for risk and position management.
Strategies: Long call/put (directional); covered call (income); protective put (hedge); spreads (bull/bear call/put); straddle/strangle (volatility); iron condor (range). Each has defined risk/reward and use case.
Pricing: Option value = intrinsic + time value. Volatility (implied vs historical) is central. Black-Scholes and binomial models (conceptual).
Risk: Limited (long options) vs unlimited (short naked options). Margin, assignment, early exercise. Position sizing and diversification.
When to use: Leveraging a view (calls/puts), hedging equity (protective puts, collars), earning premium (covered calls, selling spreads), or expressing volatility views (straddles, strangles). Combines with TA (timing) and FA (underlying selection).
Full content: Options Trading | Book Notes
4. How to Use All Three Together
Choose the asset
Fundamental Analysis
Screen by quality, valuation, growth; avoid overvalued or weak fundamentals.
Time the trade
Technical Analysis
Enter on structure (support, breakout), set stop and target from price action.
Structure the exposure
Options (if used)
Use calls/puts/spreads to express view or hedge; manage size and cost with Greeks.
Manage risk
All three
FA = position size by conviction; TA = stops/targets; Options = defined risk, hedging.
Example (long equity idea): FA says stock is undervalued and high quality → TA says wait for pullback to support and bullish candle → Enter stock or buy call; stop below support; target at next resistance or based on valuation.
5. Repository Map (Where to Find What)
Technical Analysis (full handbook)
TA Revision & cheat sheets
TA Book summaries
Fundamental Analysis
Fundamental book notes
Options Trading
Options book notes
Tips and Tricks
This summary folder
6. One-Page Quick Reference
Technical: Structure (HH/HL, BOS) → Levels (S/R) → Pattern or indicator confirmation → Entry/stop/target → Size by risk% (1%, size = $risk / |entry−stop|).
Fundamental: Statements → Ratios → Valuation (DCF/multiples) → Qualitative (moat, management) → Margin of safety → Buy when price < value.
Options: Define view (direction/volatility) → Choose strategy (call/put/spread/straddle) → Check Greeks (delta, theta, vega) → Size and expiration → Manage or close before expiry.
For discipline-specific detail, open Technical_Analysis_Summary.md, Fundamental_Analysis_Summary.md, and Options_Trading_Summary.md.
Last updated