07/07/2011 - Technical Analysis (TA) Can Makes Investors Rich
Don't depend only rumors, be learning first. You may loose capital if you run with rumors. Share business is not for uneducated persons. It's a one kind of business. So, you have to learn many things before investing. There are many terms, like as- NAV, P/E, EPS etc. You have to know Fundamental Analysis (FA) and Technical Analysis (TA) both as a successful investor.
Read more: http://michaljohnblog.blogspot.com
A Technical Analysis blog of Winning Stocks. It can helps you to learn FA & TA for Minimize Loss & Maximize Profit.
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What is Technical Analysis?
Now I am telling what is Technical Analysis (TA)? TA is a method to analyze stocks and make investment decisions accurately based on its passed history. TA works on Volume and Price. Actually TA works 80% on price and 20% volume. TA does not result in absolute predictions about the future. Instead, Charts analysis can help investors anticipate what is "probable" to happen to prices over time.
In the above chart, Bollinger band (red line) is showing price volatility of stocks. Green line represents 10 days moving average. In the lower portion of this chart is volume bar. Red bar indicates bearish (downtrend) and Green bar indicates bullish (uptrend).
There are few basic TA indicators, such as RSI (Relative Strength Index), MACD (Moving Average Convergence-Divergence), MFI (Money Flow Index), Stochastic, William %R, ADX (Average Directional Index) etc. Moving Average is very useful in Technical Analysis. You can use some popular moving average for trading, like- 3, 9, 13; 10, 20, 50, 200 days Moving Average (MA). TA can give you an idea about overbought (Technical person has to be sell) or oversold (Technical person has to be buy) situation of your stocks also. TA can define Support-Resistance level of any stocks which represent key junctures where the forces of supply and demand meet. Securities prices are related to supply and demand also. TA uses a wide variety of charts that show price over time. You have to understand also some popular and widely used of chart patterns
Trading with Charts:
AmiBroker is one of the best Technical Analysis software. You can import market data into AmiBroker as CSV/excel format for analysis. There are many AFL's are available which can provides buy-sell signal which can be using in AmiBroker. TA may give many fake signal, you have to understand which one is fake or real signal by using different indicators.
Conclusions:
In summery, TA can help you to understand the market trend (bull or bullish); it can also help to get buy-sell decision, i.e. right decision in right time. So, learn Fundamental & Technical Analysis for Minimize Loss & Maximize Profit.
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