Technical Analysis

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Technical Analysis 

In a previous blog we have seen the meaning of Fundamental Analysis in today’s blog we will see the meaning of Technical Analysis we have seen that we are going through a deep analysis of a company to invest for the long term which includes business model and company performance but in Technical Analysis We are trying to understand Long Term and Short Term Trend of Investments in that company. Which will give us a brief about short term and long-term sentiments of the market.

Technical Analysis includes chart reading with different Forecasting methods developed by trading terminals. in which we use Weighted Moving Average, Moving Average, Vwap, RSI (Relative Strength Index), Volumes, etc. all these are the live market indicators. but these indicators are lagging indicators because they show the effect after the scenario. So we can predict the momentum for the short term based upon live market sentiment indicators, if we observe these indicators in the different time frames we can see the difference or the similarity in the long term and short term Trend, in the technical analysis we can consider different candlesticks patterns Occurred on the chart and we can able to relate this pattern with sentiments which include Hammer Patters, Hanging man or Morning Star Etc. with the color of Bull and Bear

 

To maintain Accuracy in the Technical analysis we have to choose a different combination of indicators as per our understanding but the probability of winning trade will always depend upon treading psychology.

 

In the upcoming series, we will discuss more different aspects of Fundamental & Technical Analysis      

 

 

 

Thank You

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