Analysis of stock: Technical Analysis

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Technical Analysis

Analysis of stock: Technical Analysis
Analysis of stock: Technical Analysis


The second major type of Analysis of a stock (first is Analysis of stock: Fundamental Analysis ) is on the basis of technical indicators. It focusses on the price action of the stock. This is a main way by which intraday traders or short term traders, FnO traders analyze a stock. It is used to predict to price movements of the stock i.e. upside or downside.

Key factors of Technical analysis are

  • ·      Charts
  • ·      Price Action
  • ·      Indicators (MACD, RSI, Alligator, etc.)
  • ·      Market Statistics
  • ·      Demand and Supply patterns
  • ·      Moving averages
  • ·      Exponentially moving averages.

Technical vs. Fundamental Analysis

Technical

Fundamental

Focuses on price oft the stock

Focuses on value of the stock

TF. 1day – 1yr

TF. 1yr+

Price trend is followed.

Financials are followed.

Indicators play the main role.

Financial ratios play the main role.

If you want to do trading then technical analysis is what you want to know as fundamental analysis is based on financial it could take time (usually does) so it might be possible that you need to hold for a long period of time.

Here is the link for opening a Demat account:
  1. Zerodha: https://zerodha.com/open-account?c=UY4367
  2. Upstox: https://link.upstox.com/9fAC  
  3. Groww: https://app.groww.in/v3cO/xkv346wi

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