Analysis of stock: Technical Analysis

-

 

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

Comments

Post a Comment

Popular posts from this blog

Analysis of stock: Fundamental Analysis

-
Image
Fundamental Analysis Analysis of stock: Fundamental analysis Acc. to me it is the best way to analyze a stock for investment. It is a way to find out that a stock is undervalued or overvalued. Analyst study the financial figures of company through the balance sheet of the company, government policies related to the company/sector, analysis of industry/sector and then analyze the future aspects of the company. It is mainly done for long-term investments (acc. to me 1yr+) as it focuses on the value of the company. Fundamental Analysis vs. Technical Analysis Fundamental Analysis vs. Technical Analysis This method is very different from technical analysis. Fundamental analysis is much more reliable given that it deals mostly with the present stature of a company rather than a delusional chart which can be affected by multiple factors. Some of the Key differences are:- Fundamental Technical Focuses on value of the stock Focuses on price oft the stock
Read more

Inflation- Meaning

-
Image
  Inflation Inflation It is the most important financial term in our lives. It is referred to as a rise in the prices of goods and services of daily use (other than these, our life cannot go smoothly). It is measured in percentage change in avg. price of these everyday use commodities. In simple words, if suppose inflation rate is 7p.a. and your monthly expense is around 10000, then after one year, it will be around 10700. This number seems to look so small in the short run, but in the long run, it is very much as it is getting compounding every year. If you don’t invest your money and let it be dormant in a savings account with a 2% interest rate, you are losing around 5% every year. And in F.Ds with 5.5% interest rates, you are losing approximately 1.5% every year. And the Inflation rate I have taken is avg. inflation rate, while during hyperinflation, these rates go as high as 10-15% , so now you can calculate how much money you are losing every year.  In India, the Ministry of Sta
Read more