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Technical Analysis of Stocks For Better Trading

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Technical Analysis of Stocks

Hello, friends welcome to a fresh article of “MultibaggerCalls.com”, Here in this article I explained how to do Technical analysis of stocks for profitable trading.

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 how to do a Technical analysis of stocks to find better trading.

You will also understand the importance of technical analysis and why it’s necessary for every trader and investor.

It also helps you to find the best entry and exit level for stocks.

Many of master traders believe that technical analysis covers the fundamental analysis.

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/investors try to understand the behavior of stocks.

It will also help to understand the trend of stocks.

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

It is applicable to 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 the 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 signals.

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

The technical analysis is equally important as a 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.

Technical Analysis Of Stocks?

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

But some of the chart patterns and Indicator settings 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 for 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 the 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 how to do Technical analysis of stocks to find the best entry and exit level of stocks and the importance of technical analysis. If anyone has any query or suggestion please ask in the comment box.

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