Technical Analysis Part -2

 


                Technical Analysis Part -2


So my dear friends, in the previous chapter, we understood technical analysis. But it was not complete chapter, now it is very important for all of you to know what I will tell you because only complete knowledge can make you perfect in share market or a successful trader, then let's start Technical Analysis Part -2.


The most important thing about " Technical Analysis " (which we have shown in some places from TA) is that you can use it in any type of asset class. The only condition is that the old historical data of that asset class is available. Historical data means open, high, low, close and volume data should be available for that asset.


Let me try to explain this to you with an example, once you learn to drive a car, you can drive any type of car. Similarly, once you have learned TA, you can use it anywhere in share trading like commodity trading, forex trading, fixed income products, etc.


Read This : Stock Market Technical Analysis Part -1


This is the biggest advantage of TA over any other method of technology. For example, in fundamental analysis, you have to look  many things like loss / profit / balance sheet / cash flow margin etc. of each stock, whereas in commodities there are many of these things which do not work. so for commodities you have to use a new method of data.


Technical Analysis Part -2


If you do fundamental analysis of a commodity like coffee or chili, then you have to know about many things like monsoon, yield or its production, demand and supply and how much is already stocked. Similarly, if you want to do fundamental analysis about metals or crude oil, then you will need different types of data. But the technical analysis of each asset class can only be done in the same way.


Read This In Hindi : Technical Analysis Part -2


It does not matter whether a share is undervalued or overvalued in TA. Only one thing is important in technical analysis – and that is the old trading data of the stock, this data can give very important information and indications about future, and if I say, it also gives.


There are some concepts of technical analysis, which is very important for all of you to know:-


1. You have to take special care of one thing that any information / information related to any share gets included in the price of that share. To understand this with an example, if a person or organization is quietly buying a share from the market, because he may know or anticipate that the company's upcoming quarterly results may be good and these shares can give me a good profit in future.


Also Read This : Share Market Full Knowledge for Beginners


Even if that person is doing this secretly, but its effect is visible in the share prices, here you cannot hide anything, whether it is the effect of the epidemic or even if there is a possibility of war with the neighboring country. A good Technical Analyst identifies it on the chart of the stock and considers it suitable to buy or sale that stock. we will try to make you like that, just stay with us.



2. It is derived from the first concept itself. In our previous example, a good technical analyst wouldn't want to know why that person bought this stock. The focus of the TA is on how the hidden purchase is affecting the share price and what is going to happen next?


3. According to TA, every change in price indicates a particular trend. For example- Nifty rising from 6500 to 7800 all this did not happen in a single day. This trend started 10 - 11 months back. Another thought related to this, when the move starts on one side, then the price of the stock also increases in the same direction, sometimes it goes up and sometimes it goes down.


Read This : Why To Invest In Stock Market In India


4. According to TA, as I told you earlier that history repeats itself, similarly the price movement repeats itself. That's why the share price moves in the same way. For example - in an uptrend market, every player in the market wants to buy shares at any price, no matter how expensive that stock may be. Similarly, in a falling market, he wants to sell at any price even if the share price is much cheaper than its actual price. Because of this habit of man, history repeats itself.


The stock markets open from 9:15 Am to 3:30 Pm. And meanwhile there are millions of trades in them. Every minute there is some deal going on in every stock. Now the question is, should we keep an eye on every deal? Or can we keep track of each share or deal, the answer is, there is no need to track every stock or deal.


Read This : How To Make A Profit In The Stock Market


If we look at open i.e. opening price, high i.e. highest price, low i.e. lowest price and close i.e. final closing price in the market, then we get a fair summary of the market. The close or closing price is also seen as a signal for the next day and it shows the trend of the market. That is why C means close in OHLC. All four of these prices are seen in TA. These are analyzed by putting them on a chart.


Remember that information or knowledge is needed to be successful and this knowledge can be taken from anywhere, I have also taken knowledge from many people, then today I am sharing my experience in front of you, and anyway there is no limit of  knowledge, you can take it anytime and from any knowledgeable person, if you do not understand my point or you have any question, then you can ask by commenting.


- thank you - By - www.marketkipathshala.in 


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Must Read These Also:-


Stock Market Technical Analysis Part -1

Share Market Full Knowledge for Beginners

Why To Invest In Stock Market In India

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