Technical Analysis of Stocks

Technical analysis means predicting price movement of the stock or any securities, technical analysis is tool or method used to predict the probable future price movement of the security based on market data.

Analyzing the past price as an indicator of future price performance. Technical traders use the past price action in the market is the most reliable indicator of the future price action and many fundamental traders when they determine whether to buy or sell into the market then they look out technical indicator for low risk and maximum profit.

The technical analyst, analysis the various patterns and then shaped within these charts and each pattern expresses a different meaning which gives the direction of the price. Technical analysis is the study of chart patterns and statistical figures to understand market trends and pick stocks accordingly.

Technical trader able to identify the signals for price trends in a market is a key component of any trading strategy. There are many methodologies for locating the best entry and exist points in a market and using technical analysis tools is very popular way of doing so.

Some are the tools are: -

Reading the candlesticks patterns in different time frame is most commonly used method of predicting the price movement on the chart. A candlestick is formed the price action during a single time periods for any time frame, it is work on the simple concepts of demand and supply of stocks on that time in the market.

It is most widely used technical indicator, its line which show price action and give the indicator to buy and sell as long as price remains above and below the exponential moving average it have many times frame 50 EMA, 100 EMA and 200 EMA.

The technical analyst can add value to an investment team by providing trading investment ideas through either top-down or bottom –up analysis, depending on the nature of the investment firm or fund. In addition, technical analysis can add value to a fundamental portfolio approach input on the timing of the buy or sale of the security.

Super trend indicator is plotted on either above or below the closing price to signal a buy or sell of the stock, if the super-trend close above then the indicator shows a sell signal in red color, if the indicator close below the closing price, then show the buy signal in green color