WHAT IS TECHNICAL ANALYSIS?

 

Technical Analysis in simple words is -

                    "Method to forecast future price direction through study of historical market data primarily based on Price and Volume"

Unlike Fundamental Anlaysis which is based on Value of Underlying Assest, technical analysis is purely based on historical data (price and volume) and completely ignores Value as its main assumption is Market discounts everything i.e current price incorporates the value of all the information available in public domain.

Since technical analysis is based on Price and Volume technicians use different types of charts and apply various types of indicators to plot and analyse the data and decide its future movement.

Different types of chart includes -

1. Price line chart

2. Candlestick chart 

3.Point and Figure Chart 

Of the above most commonly used chart is Candlestick Chart. 

Various Indicators includes -

1.Relative Strength Index

2.MaCD

3.Stochastic

4.ADX

5.Moving Averages among various others. 

 

To be continued ....