What is Technical Analysis:
Technical analysis is a technique which is used in stock market forex market crpyto and so on. In simple words its a method, using for trading in stock market by which a trader decides its targets in a trade. Their is two analysis term in the market one is
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Fundamental analysis
Technical analysis
Here we are going to see how we can use technical analysis in our daily trading life.
Getting started in technical analysis
Here technical analysis consist of some major rules which are most important while we use this method in trading. A pro tarder only use technical analysis while trading nothing else. Technical analysis comes with some simple indicators which are ignored by most of the new comer trader in market. They just run behind a short cut indicators like buy & sell , super trend etc etc. But technical analysis dont demand like these kind of indicators except few. So if you want to learn technical analysis all you have to do is just read the article get more deep information anywhere and practice thats it. Following are some key points which are use in technical analysis and also some points which you can understand how to do technical analysis.
Key points of Technical analysis
- Reading naked chart
- Use simple candle stick
- Read volume
- Find support & resistence
- Draw trendline
- Moving average
- Feboncci Retrestment
- Rsi
Reading naked chart
A trader who use technical analysis always read chart totaly naked he dont put bulky indicators on the chart just simple clean and clear chart thats it.
Use simple candle stick
This trader only use default or simple candle sticks on the chart. No other candle stick is used. While using technical analysis trader use 5 mint 15 mint 1 hour time frame on the chart for intra day.
Read volume
Volume is the most ignored one tool which is neglated by new comers now a days. And thats why these kind of people stucked in a trade for hours. An experinced trader always use volume tool while trading beacuse it tells us how strong that trend is going to be or not. So always use volume.
Find support & resistence
If you learn technical analysis tge basic term which you use in it is support & resistence level. Technical analysis allow you to find out these two factors which are the base of any stock. If you know support & resistence level of that perticular trade then you eventually get know you targets and stoploss its just like simple.
Draw trendlines
While learning in technical analysis you get understand that how you can draw trend lines on the chart in terms of support resistence accumulation and consolidation level. It helps you to understood the importance of that drwan level.
Moving average
Its the first indicator which i persnolly use while trading its just simple and easy to use. If you know what is the moving average then you know its importance as well. By using this you are capable of finding the trend of stock is it in bulish trend or in bearsish trend.
Feboncci retracement
Its a tool use by pro traders by which you could know tye level of that perticular stock on what level it will come retrest or bounce back. So febonacci is just awsome tool for trading.
Rsi
Rsi is a indicator which is known by every one but used by only few traders. If you are a intraday tarder then its a compultion that you should always use rsi beause of it you get to know how over bought or over sold stock is.
These are some points that are used in technical analysis
Also read our technical analysis of this stock which is done by technical analysis. Read full article
