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Stock market is a volatile place to invest money in but still a large number of people
try their luck in it. Not everybody can reap in profits in the end. On the contrary
some people succeed in making some quick bucks. There are some reasons which
make people invest their money in stock tradingThere are many ways to approach
any investment decisions, among all one of the best is Technical Analysis.
I M not any Analyst or any ExpertI m just a laymenwhos mottos is everybody
must Earn Daily Easy Money from our Market with some Discipline & Rules.
As we all know Tarding is based on 2 Main aspect
Technical Analysis & Fundamental Analysis
So what is Technical Analysis?
Technical is a proven science which determines the Direction of Price or Trend of
the market or Stock. It helps u to Buy or Sell the Stock/Commodity/Currency at a
certain price.
There are many Factors which Determines the Technicals
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Short term Moving Average & price Oscillators upper and lower position can be use
as Support/Resistance.
Buy/SellWhat does not go below certain price is a Buy
what does not go beyond a certain price is a sell or vice versa..
This is also called Support & Resistance.
Supports Breaks become Resistance(Sell)
Resistance crossed becomes Support(Buy).
RSI (Relative Strength Index)
RSI is plotted on a vertical scale from o to 100. Values above 70 are
considered overbought and values below 30, oversold. When prices are over 70
or below 30 and diverge from price action, a warning is given of a possible
trend reversal.
RSI is a very popular tool because it can also be used to confirm trend
formations. If you think a trend is forming, take a quick look at the RSI value
and look at whether it is near 70 or near 30. If you are looking at a possible
uptrend, then make sure the RSI is near 70. If you are looking at a possible
downtrend, then make sure the RSI is near 30
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Bear Market: A long period of time when prices in the market are generally
declining. It is often measured by a percentage decline of more than 20%.
Bull Market: A long period of time when prices in the market are generally
increasing.
Buyback: A company's repurchase of it's own shares of stock.
Correction: After an advance, a decline that does not penetrate the low from
which the advance began is known as a correction. Also referred to as a
retracement, a correction usually retraces 1/3 to 2/3 of the previous advance.
Crossover: A point on a graph where two lines intersect. Depending on which
lines they are, a crossover may indicate a buy or sell signal. For example, the
price line crossing above a moving average line may generate a buy signal.
Oscillators such as MACD and Chaikin Money Flow experience centerline
crossovers.
Envelopes: Lines that are placed at fixed percentages above and below a
moving average line. Envelopes help determine when a market has traveled
too far from its moving average and is overextended
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