There are many ways to
trade in the Stock Market. The
technical analysis is one of the most important ways of trading in the Stock
Market. There are more than dozen of indicators which are studied in the
Technical analysis. There are two broad categories of indicators in the
Technical analysis. The momentum indicator and oscillator indicators are the
main categories of the indicators present. The momentum indicators are usually
the trend following indicators and represent the present trend. The oscillators
are usually the strength index and determine the strength of the trends. The
momentum indicator give signals about the trend following and consolidating the
buy and sell signals based on the current trends. The oscillators give
potential signals about the trend reversals.
The common momentum
indicators include the moving averages, MACD and parabolic SAR. The MACD stands
for moving average convergence and divergence. The moving averages are also of
two types, the simple moving average and the exponential moving averages. The
simple moving average gives a slow response as compared to the exponential
moving averages.
The common oscillator
indicators include the RSI and Bollinger bands. The RSI stands for the relative
strength index and it takes a value between 0 and 100. The value of RSI near 30
indicates the oversold levels and the value of RSI near 70 indicates overbought
levels. The overbought and the oversold levels are the potential chances of
trend reversals. Similarly Bollinger bands are also oscillators which gives buy
and sell signals on breakout of price levels.
The above described
indicators are extensively used by the technical analysts to generate accurate
stock market tips. The technical analysts in the advisory firm use the above
indicators to generate equity tips and intraday trading tips. Money Classic Research is one such
advisory firm which is reputed and SEBI registered. The advisory firm is also
ISO certified.
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