Home Stock Market Learning Technical Analysis Importance & Technic – 2019

Technical Analysis Importance & Technic – 2019

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Importance of Technical Analysis in Stock Market

Hello, friends welcome to a fresh article of “MultibaggerCalls.com”, Here in this article I explained what is the importance of technical analysis.

If you are new to the stock market and what to know the importance of technical analysis, You’re on the right page.

After reading this complete article. You will get an idea about the technical analysis and why it’s important for every trader and investor.

It’s also helps you to find the best entry level in stock.

Technical Analysis

What is Technical Analysis?

Technical analysis is the combination of Price action and  Volume of individual stock on the chart and it is the study of historical data of stocks.

With the help of historical data trader/investor try to understand the behavior of stocks.

It will also helps to understand the trend of stocks.

Technical analyst predicts the future price of the stock on the basis of the past price performance of the stock.

It is applicable on stock, Currency, Commodities and all other tradeable securities.

If you are done technical analysis in the right way, It will help you create a new position in stocks at bottom and exit at the top.

To do the proper analysis first you need to create a strategy with the use of indicators.

Indicators are additional ingredients for buying or selling signal.

It also helps to find the support and resistance of stock.

The technical analysis is equally important as fundamental analysis.

Where fundamental analysis helps to identify the valuation, quality of stock.

The technical analysis help to identify the right time to enter and the right time to exit.

Best Technic Of Analysing Stock?

In the stock market, There is no full proof technic for trading.

But some of the chart pattern and Indicator setting still give a huge profit.

Here I going to explain to you some famous technic stock analysis.

These technics are already generating lots of profits to traders & Investors.

1. The crossover of 48 Days Exponential Moving Average (EMA) and 13 Days Exponential Moving Average (EMA):-

If the 13 days EMA crossover (upside) the 48 days EMA.

It’s a good buying signal for the stock.

And if the 13 days EMA crossover (Downside) 48 days EMA.

It’s a selling signal for the stock.

2. 20 days Moving Average on Volume:- 

In this technic, you need to apply the 20 days moving average on volume.

If the volume crosses the 20 days moving average line (upside) with a positive candle.

It’s a good buying signal for the stock.

And When it’s volume the 20 days moving average with a negative candle.

It’s a selling signal for the stock.

3. The crossover of 10 Days Exponential Moving Average (EMA), 40 Days Exponential Moving Average (EMA) and 60 Days Exponential Moving Average (EMA):- 

It is the most used combination of moving average.

When the 10 days EMA and 40 days EMA crossover (upside) the 60 days EMA.

It’s a very strong buying signal for the stock.

And when the 10 days EMA and 40 days EMA crossover (Downside) 60 days EMA.

It’s a selling signal for the stock.

I have already used the all above trading technics.

Which is very effective and profitable for me.

Note:- These strategies are not working on all stock before applying this strategy you need to do the proper backtest.

I hope now you understand what is the importance of technical analysis and how to use it’s to find an entry level of stock. If anyone has any query or suggestion please ask in the comment box.

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