Tuesday, 29 September 2015

Enticing Share Market Strategies for Traders

Enticing Share Market Strategies for Traders - Money Classic Blog
Different traders trade on the basis of different strategies to trade in the Share markets. Some traders base their trade on technical analysis which is a whole field for the analysis of the price movements. In technical analysis the price movements are drawn in form of various charts. The charts are drawn with the price levels on the Y axis and time on the X axis. The main types of charts include the candlestick charts and line charts. In candle stick charts the candles represent the price movements. The scale of time can be decided by analyst.

In technical analysis various types of indicators are used. The indicators like moving averages, exponential moving averages, MACD and RSI are used extensively in technical analysis. In moving averages the average of the latest price signals is taken. The period of moving average will decide the number of price levels whose average is to be taken. The common strategy while using the moving average is moving averages cross over. The moving averages are drawn with two periods. These moving averages will show the general trend of the market or the price levels of stock and commodities. The crossover of the   moving averages will indicate trend reversal. Thus the trend reversal is the point when appropriate buy and sell signals are placed. If an uptrend is found a buy call is placed. On the other hand if a down trend is found a sell call is initiated. In case of exponential moving averages an exponential weight-age is applied while calculating the moving averages. The exponential moving averages are considered better than simple moving averages as they give fast response as compared to the simple moving averages.

The trader can learn technical analysis or he can rely upon some advisory firms providing accurate share market tips. These advisory firms hire expert analysts having sound knowledge about financial markets.

No comments:

Post a Comment