Thursday, 26 November 2015

Important Indicators in Technical analysis

Different people choose different ways to trade in the stockmarket. Some use technical analysis and other use fundamental analysis and news based trading. The technical analysis is the method which is used by most of the traders. The technical analysis is a whole in-depth field of analysis which takes time to master. There are more than dozens of Technical indicators which are studied in the technical analysis. The price and the volume are the basic entities on which all the other indicators are based. The basic indicators which are used in the technical analysis are simple moving averages, exponential moving averages, Relative Strength Index (RSI), Moving averages convergence and divergence (MACD) as well as Bollinger bands. The concept of trend is also very important in the technical analysis. The trend is considered to be trader’s friend. That is the trader can make good profits by following the trend. There are three types of trends namely the uptrend, the downtrend and the sideways trend. When a uptrend is in play the trader is expected to put a buy call. So that when the trend continues and the price rises further the trader can sell at a subsequent time and incur profit. Similarly when the downtrend is there the trader can short sell. By short sell it means that the trader will first sell and then buy at the subsequent time. A short sell in the downtrend will fetch good profit to the trader.

The traders who are new to the stock market and want to start trading, they can take the help of the advisory firms for their advice and support. The advisory firms have technical analysts who are knowledgeable and provide accurate stock market tips based on the analysis performed by them. Money Classic Research is an advisory firm which is SEBI registered and also ISO registered.

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