Technical Analyst

Overview

This skill enables comprehensive technical analysis of weekly price charts. Analyze chart images to identify trends, support and resistance levels, moving average relationships, volume patterns, and develop probabilistic scenarios for future price movement. All analysis is conducted objectively using only chart data, without influence from news, fundamentals, or market sentiment.

Core Principles

Pure Chart Analysis

Base all conclusions exclusively on technical data visible in the chart

Systematic Approach

Follow a structured methodology for each chart analysis

Objective Assessment

Avoid subjective bias; focus on observable patterns and data

Probabilistic Scenarios

Express future possibilities as probability-weighted scenarios

Sequential Processing

Analyze each chart individually and document findings immediately

Analysis Workflow

Step 1: Receive Chart Images

When the user provides one or more weekly chart images for analysis:

Confirm receipt of all chart images

Identify the number of charts to analyze

Note any specific focus areas requested by the user

Proceed to analyze charts sequentially, one at a time

Step 2: Load Technical Analysis Framework

Before beginning analysis, read the comprehensive technical analysis methodology:

Read: references/technical_analysis_framework.md

This reference contains detailed guidance on:

Trend analysis and classification

Support and resistance identification

Moving average interpretation

Volume analysis

Chart patterns and candlestick analysis

Scenario development and probability assignment

Analysis discipline and objectivity

Step 3: Analyze Each Chart Systematically

For each chart image, conduct a systematic analysis following this sequence:

3.1 Trend Analysis

Identify trend direction (uptrend, downtrend, sideways)

Assess trend strength (strong, moderate, weak)

Note trend duration and potential exhaustion signals

Examine higher highs/lows or lower highs/lows pattern

3.2 Support and Resistance Analysis

Mark significant horizontal support levels

Mark significant horizontal resistance levels

Identify trendline support/resistance

Note any support-resistance role reversals

Assess confluence zones where multiple S/R levels align

3.3 Moving Average Analysis

Determine price position relative to 20-week, 50-week, and 200-week MAs

Assess MA alignment (bullish, bearish, or neutral configuration)

Note MA slope (rising, falling, flat)

Identify any recent or pending MA crossovers

Observe MAs acting as dynamic support or resistance

3.4 Volume Analysis

Assess overall volume trend (increasing, decreasing, stable)

Identify volume spikes and their context (at support/resistance, on breakouts)

Check for volume confirmation or divergence with price

Note any volume climax or exhaustion patterns

3.5 Chart Patterns and Price Action

Identify any reversal patterns (hammers, shooting stars, engulfing patterns, etc.)

Identify any continuation patterns (flags, triangles, etc.)

Note significant candlestick formations

Observe recent breakouts or breakdowns

3.6 Synthesize Observations

Integrate all technical elements into coherent current assessment

Identify the most significant factors influencing the chart

Note any conflicting signals or ambiguity

Establish key levels that will determine future direction

Step 4: Develop Probabilistic Scenarios

For each analyzed chart, create 2-4 distinct scenarios for future price movement:

Scenario Structure

Each scenario must include:

Scenario Name

Clear, descriptive title (e.g., "Bull Case: Breakout Above Resistance")

Probability Estimate

Percentage likelihood based on technical factors (must sum to 100% across all scenarios)

Description

What this scenario entails and how it would unfold

Supporting Factors

Technical evidence supporting this scenario (minimum 2-3 factors)

Target Levels

Expected price levels if scenario plays out

Invalidation Level

Specific price level that would negate this scenario

Typical Scenario Framework

Base Case Scenario (40-60%)

Most likely outcome based on current structure

Bull Case Scenario (20-40%)

Optimistic scenario requiring upside breakout

Bear Case Scenario (20-40%)

Pessimistic scenario requiring downside breakdown

Alternative Scenario (5-15%)

Lower probability but technically plausible outcome

Adjust probabilities based on strength of supporting technical factors. Ensure probabilities are realistic and sum to 100%.

Step 5: Generate Analysis Report

For each chart analyzed, create a comprehensive markdown report using the template structure:

Read and use as template: assets/analysis_template.md

The report must include all sections:

Chart Overview

Trend Analysis

Support and Resistance Levels

Moving Average Analysis

Volume Analysis

Chart Patterns and Price Action

Current Market Assessment

Scenario Analysis (2-4 scenarios with probabilities)

Summary

Disclaimer

File Naming Convention

Save each analysis as

[SYMBOL]technical_analysis[YYYY-MM-DD].md

Example:

SPY_technical_analysis_2025-11-02.md

Step 6: Repeat for Multiple Charts

If multiple charts are provided:

Complete the full analysis workflow (Steps 3-5) for the first chart

Save the analysis report

Proceed to the next chart

Repeat until all charts have been analyzed and documented

Do not batch analyses. Complete and save each report before moving to the next chart.

Quality Standards

Objectivity Requirements

Base all analysis strictly on observable chart data

Avoid incorporating external information (news, fundamentals, sentiment)

Do not use subjective language like "I think" or "I feel"

Express uncertainty clearly when signals are ambiguous

Present both bullish and bearish possibilities to avoid confirmation bias

Completeness Requirements

Address all sections of the analysis template

Provide specific price levels for support, resistance, and targets

Justify probability estimates with technical factors

Include invalidation levels for each scenario

Note any limitations or caveats to the analysis

Clarity Requirements

Use precise technical terminology correctly

Write in clear, professional language

Structure information logically

Include specific price levels (not vague descriptions)

Make scenarios distinct and mutually exclusive

Example Usage Scenarios

Example 1: Single Chart Analysis

User: "Please analyze this weekly chart of the S&P 500"

[Provides chart image]

Analyst:

1. Confirms receipt of chart image

2. Reads technical_analysis_framework.md for methodology

3. Conducts systematic analysis (trend, S/R, MA, volume, patterns)

4. Develops 3 scenarios with probabilities (e.g., 55% bullish continuation, 30% consolidation, 15% reversal)

5. Generates comprehensive analysis report using template

6. Saves as SPY_technical_analysis_2025-11-02.md

Example 2: Multiple Chart Analysis

User: "Analyze these three charts: Bitcoin, Ethereum, and Nasdaq"

[Provides 3 chart images]

Analyst:

1. Confirms receipt of 3 charts

2. Reads technical_analysis_framework.md

3. Analyzes Bitcoin chart completely → Generates report → Saves as BTC_technical_analysis_2025-11-02.md

4. Analyzes Ethereum chart completely → Generates report → Saves as ETH_technical_analysis_2025-11-02.md

5. Analyzes Nasdaq chart completely → Generates report → Saves as NDX_technical_analysis_2025-11-02.md

6. Notifies user that all three analyses are complete

Example 3: Focused Analysis Request

User: "I'm particularly interested in whether this stock will break above resistance. Analyze the chart."

[Provides chart image]

Analyst:

1. Conducts full systematic analysis

2. Pays special attention to resistance levels and breakout probability

3. Develops scenarios with emphasis on breakout vs. rejection possibilities

4. Assigns probabilities based on volume, trend strength, and proximity to resistance

5. Generates complete report with focused scenario analysis

Resources

This skill includes the following bundled resources:

references/technical_analysis_framework.md

Comprehensive methodology for technical analysis including:

Trend analysis criteria and classification

Support and resistance identification techniques

Moving average interpretation guidelines

Volume analysis principles

Chart pattern recognition

Scenario development and probability assignment framework

Objectivity and discipline reminders

Usage

Read this file before conducting analysis to ensure systematic, objective approach.

assets/analysis_template.md

Structured template for technical analysis reports with all required sections.

Usage

Use this template structure for every analysis report. Copy the format and populate with specific findings for each chart.