Introduction to Technical Analysis Stock Market

 

stock market, noteindia, technical analysis
concept of technical analysis

In this, we will learn about the use of assets in the concept, technical analysis, how to monitor the market.

Use of different assets

Technical analysis can be used for any type of asset. Old data should be available for the asset being analyzed Old data means the open, high, low, close, and volume of that asset should be available.

If you learn to do technical analysis of any asset, then you will learn to do any kind of asset analysis, only the historical data of the asset you are analyzing should be available.

You can use Technical Analysis in Share Trading, Fixed Income Products, Forex Trading, and Commodity Trading.

In fundamental analysis, different data are used in different assets as compared to technical analysis whereas, in technical analysis, the same data is analyzed.

In fundamental analysis, each stock has to look at the loss, profit, balance sheet, cash flow, whereas in commodity analysis, their data is different.

A commodity like metal or metal energy in fundamental analysis, Fundamental analysis of crude oil requires different data if you do a fundamental analysis of coffee or pepper So you have to know about all these things Demand, Supply, production, and Monsoon.

But the technical analysis is done in the same way in each asset, whether it is equity, commodity or currency, etc.

Concepts of technical analysis

Technical analysis does not take into account whether the stock is cheaper or more expensive than its actual price. In technical analysis, it is necessary to have the old trading data of the stock and this data gives an indication about the time to come.

Technical analysis is based on certain concepts

The stock market includes all the important things related to the share in its price, it tells us that every information related to stock has an effect on the price of the share, if someone buys the shares of a company, then he or she knows that further In the coming time, this stock will give profit as a technical analyst can understand by reading the chart of the stock.

Price affects- Technical Analysis Every change in the share price indicates a trend, if the Sensex has risen from 55000 to 60000, then it will take a few months or years for this change.

history repeats itself- According to technical analysis, the movement of share price repeats because the market participants react in the same way every time to the same event.

How to track the market

Millions of trades take place in the stock market between the opening and closing of the market, every minute some deal is being done in a stock.

If we look at the market opening price, high price, low price, close price, then we get information about the market.

Open Price - When the market opens, the trade price in it is the open price.

The high price - the highest price of that day. The price is called high price.

Low price- The lowest price of that day is called low price.

Close price- The last trade that takes place until the close of the market is considered to be a close price. If the closing price is above the open price, the market is considered bullish. If the close price is below the open price then it is considered bearish.

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4 Comments

  1. I like your blog, its very informative for new trade in stock market!
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  2. Thanks for publishing such great information. You are doing such a great job. This information is very helpful for everyone. Keep sharing about stock analysis subscription. Thanks.

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  3. Excellent post. I really enjoy reading and also appreciate your work. This concept is a good way to enhance knowledge. Keep sharing this kind of articles, Thank you.Market Research Specialists Edmonton

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