What is technical analysis of stock market?
Answers
Technical Analysis in stock market:
Technical analysis is the method or the tools we use for analyzing and predicting the future price of a certain stock. They are mathematical tools. We need to use technical analysis mostly for doing intraday trading and to make the probability of our decision more right. With the help of using all the tools and doing the technical analysis we can make a right decision whether to buy a stock or not to buy a stock and by doing this we can guarantee more profits because we have proved by using these tools that we are making a right decision.
Types of indicators for doing technical analysis:
There are various different types of indicators which can be used for predicting whether the market will be bullish or bearish. Tools are as follows:
- Moving Averages
- MACD
- Candle Sticks
- Relative Strength Index and Stochastic
These are some of the common mathematical tools used in the stock market for doing technical analysis. Using these tools we can predict whether the stock price will go up or down. We need to study about these tools in detail to know how to use them to make correct decisions. If we use these tools together then there is a very less chance we can make a mistake by buying or selling a stock. We always need to use multiple indicators for the best result.