You are here: Home > articles > Spreads and CFDs > 07/07/2011 – Technical Analysis (TA) Can Makes Investors Rich
07/07/2011 – Technical Analysis (TA) Can Makes Investors Rich
July 7, 2011 1:08 pmVideo
Latest News
- EUR/USD: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- AUD/USD: Australian dollar remains under pressure April 16, 2024
- GBP/USD: trading plan for the US session on April 16th (analysis of morning deals). The pound was quickly bought back around April 16, 2024
- Trading Signals for BITCOIN (BTC/USD) for April 16-18, 2024: buy above $62,500 (4/8 Murray – 21 SMA) April 16, 2024
- Technical Analysis – USDCAD blossoms ahead of central bank speeches April 16, 2024
- EUR/USD: trading plan for the US session on April 16th (analysis of morning deals). Fewer people are willing to sell euro April 16, 2024
- EUR/USD. April 16th. Bears continue to advance against the backdrop of strong US statistics April 16, 2024
- Euro, sterling extend weakness April 16, 2024
- GBP/USD. April 16th. British statistics didn’t capture traders’ attention April 16, 2024
- Technical Analysis – EURCHF ticks up after strong losses April 16, 2024
- Technical Analysis – JP 225 index tests crucial support zone April 16, 2024
- Market Comment – Stocks slide, dollar soars as rate cut bets take another hit April 16, 2024
- Forex forecast 04/16/2024: EUR/USD, USDX, Gold and SP500 from Sebastian Seliga April 16, 2024
- GBP/USD: trading tips for beginners for European session on April 16 April 16, 2024
- EUR/USD: trading tips for beginners for European session on April 16 April 16, 2024
- What’s next for markets amid Israel-Iran tensions? – Special Report April 16, 2024
- Technical Analysis – GBPUSD pulls back into the negative zone April 16, 2024
- Geopolitical developments and stronger US data push volatility to new highs across the board – Volatility Watch April 16, 2024
- Technical Analysis – AUDUSD breaks the lower bound of a sideways range April 16, 2024
- Video market update for April 16, 2024 April 16, 2024
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.
Related Posts: