Technical Analyst’s Blog

Hello Every One,

Today we shall discuss about ‘Technical Analysis‘.

Many times we listen on news or from many market experts saying “Its a bull market and every fall is a buy”.

But do you ever get a clue from them as :

1. At what Price you should buy?

2. At what time you should buy?

3. Where will you place your StopLoss?

5. Last but not least when will you come to know the bull run is over and its time to book your profits and close your open positions?

Answer to all these most important questions is Technical Analysis.

This analysis is purely based on Technical Charts of the financial instruments and many mathematician, statisticians have discovered various Technical Indicators which helps us in making decision before the actual movement of price.

Again the decision, analysis you do is up to you as how you interpret and how you trade.

These indicators are mere an Indicator and many times i have experienced that it fails. Hence one should have a checklist of some important indicators and if majority of them say Buy then the stock price is most likely to rise. And even if it doesn’t moves in your favor you will be intelligently placing your stoploss.

One can easily find out bookish definition of Technical Analysis but as per my experience i will draft it in my words and trust me this will clear your concept of technical Analysis,

So friends consider Tech Analysis as an Art which most of the traders have learnt before they started trading, and of course they all were taught the same things what i shall be teaching you.

So when you look at a chart and based on your indicators you predict a upward move, no doubt that other 90 out of 100 trader are also feeling and predicting the same, hence all these 90 traders buy and buyers win over sellers and eventually price moves up.

Any questions?

Please share your comments, will be happy to answer you all.

Till then its Prashant Singh signing off, will return with my next topic.

Bye n Happy Trading.