As a New Trader, We Face lot of challenges in our trading, like stock selection, Price behavior, Volume, Price action and where is entry and exit point and Main issue is how to control emotion in trading.

There is only one solution of these problem, you should a very sound knowledge of Advance Technical Analysis and Charting.

 

Introduction

The Share Price movement is analyzed broadly with two approaches.

1.       Fundamental Approach

2        Technical Approach

Fundament Approach:

Fundamental Approach analysis share prices on the basis of economic, industry and Company Statistics. If the prices of the share are lower than its intrinsic value, an investor buy it, but if he finds the price of the share prices is higher than the intrinsic value, he sells and make a profit.

Technical Analysis:

Technical Analysis is based on the assumptions that all information that can affect the performance of a stock company fundaments, economic factors and market sentiments is reflect already in the stock prices.

What is Technical Analysis

In Technical Analysis, study we forecast the direction of prices through the study of patterns in historical data, price and volume.

In technical Analysis believe that market activity will generate indicators in price trends that can be used to forecast the direction and magnitude of stock price movements in future.

Candlestick Analysis

A daily candlestick charts shows the security’s open, high, low, and close price for the day. The candlestick’s wide or rectangle part is called the “real body” which shows the link between opening and closing prices.

This real body shows the price range between the open and close of that day’s trading.

Candlesticks show that emotion by visually representing the size of price moves with different colors.

Support and Resistance

 

• Support and resistance levels are important points in time where the forces of supply and demand meet. These support and resistance levels are seen by technical analysts as crucial when determining market psychology and supply and demand. When these support or resistance levels are broken, the supply and demand forces that created these levels are assumed to have moved

Trendlines

• One way for an analyst to see the trend is by drawing what are called trend lines. A trend line is a straight line that connects 2 or more price points and then extends into the future to act as a line of support or resistance. Many of the principles applicable to support and resistance levels can be applied to trend lines as well.