stock market technical analysis is a tool or method used to predict the future price volatility by evaluating the historical price movements and identifying the current price action.
It is believed that the current and past price action or volatility in the market indicates the future price action.
stock market technical analysis is not the same as fundamental analysis.
The former focuses on historical price actions, chart patterns and the speed and volume of price movements, whereas the latter focuses on the current value of the stock and examines the business to determine its financial circumstances.
There are many stock market technical indicators used by active stock traders in Delhi that are focused on historical stock market trading data (price, volume and open interest) and measure the volatility of price action line RSI (Relative Strength Indicator).
RSI measures the speed and change of price movements and is also used to identify the general trends of the stock market in India.
These stock market indicators are commonly used to examine the short term stock market price volatility, however, long term investors in stock market can also use them to quantify the entry and exit points for trades.
They overspread on the price chart data to specify whether the price lies under an overbought or oversold condition.
It shows where the security prices have reached in a specific duration wherein highs are reflected near the upper line or the edge and lows are reflected near the lower line or edge.
In this tool, the bandwidth can widen and narrow depending upon the movement of price or volatility.
MACD (The Moving Average Convergence Divergence) is also a momentum oscillator and the most popular indicator in use today.
It is used to confirm trades and it also provides its own stock trades signals. It appears on the chart as two lines which swing without boundaries.
ATR (An Average True Range) is also a type of technical analysis indicator which is used to measure market volatility.
It allows traders to quantify the daily volatility of an asset more accurately by using simple calculations.
It is a very useful tool used by technicians to exit enters and exit trades.
We can conclude that stock market technical analysis is a method of using market data, identifying the current trade and forecasting future prices.
stock market technical analysis use different types of tools that are based on mathematical concepts.
It is also used for analyzing statistical trends such as price movement and volume.
It is believed that the changes in price and past trading activities of security are beneficial for security’s future volatility.
stock market Technical analysis uses chart patterns to inspect the upcoming market movements in order to understand trends.