Know The Market(Session-11)
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Technical Analysis- Technical analysis is done on the basis of historical price movement plotted on a two-dimensional chart. This method believes that historical price trends are an indication of the future performance. Used by short-term investors and traders, and rarely by long-term investors. It is easy to understand as you can look at the chart and see how prices have moved. An investor can understand and analyze the current, previous and possible future trend of the stocks. Q- How does technical analysis work? Ans- Technical analysis rely on market prices which is a reflection of the supply and demand for the stock. Technical analysis read and make charts of prices. Some common technical analysis tools are the day-moving averages(DMAs), Bollinger bands, Relative strength indices(RSI) and so on. Stock Chart - Basics It is the key to analysis is a stock chart. Charts are not perfect but they provide clues as when people are buying or selling. Charts make statistical assumptions a