Technical analysis believes that the past performance of shares mirror the future performance. An analyst is not bothered if a share is undervalued. What he is bothered about is a company’s history of trading data and what it says about the company’s position in the future.
Technical analysis identifies whether the share market is going up or down. It is not really prophetic about the highs and lows but it does identify the Trends and the Reversals. And recognizing these can lead to profitability.
There are four concepts on which technical analysis is based:
-- Trends: These are the most significant indicators of technical analysis. Profits can be made irrespective of whether the trends are up, down or even sideways. Identifying the trend is what is necessary. Buy a falling stock only if it is expected to uptrend or you can wait for it to bottom so that it starts reversing when you buy it.
-- Support and Resistance levels are self fulfilling particularly when they happen in round numbers. Usually stock traders tend to act alike so you have an entire tribe acting in a similar manner and thus confirming the Support and Resistance levels. You need to identify these aspects in order to benefit.
-- Volume: Shares that are traded lightly often create problems regarding liquidity. Mildly excessive trades are seen to create wild price rotations and the inability to leave your place at the price you want.
-- Oscillators are of two types, MACD and Stochastic. Moving Average Convergence/Divergence is an indicator of momentum. It has its maximum force at the newest move. It helps in determining potential sell and purchase points in the trade. A good time to quit is perhaps when you see the momentum fading away.
Stochastic looks at the highest and the lowest prices of a stock in the last 3 weeks.
Divine Grace offers technical analysis courses that improve you ability to identify the stock price trends. These courses introduce you to technical analysis which helps in gaining better understanding of investment trends, forecasting and timing. This course is beneficial for anyone who is interested in knowing more about share market trading and activities or wishes to make better decisions as far as investment is concerned.
The technical analysis courses will make you adept at analyzing past market information as well as measuring potential profits and possible movements in prices. We will also teach you charting methods, the application of quantitative analysis, making of projections and the art of making better investment decisions.
You will be learning:
-- Charting methods
-- Analyzing trends and Dow theory
-- Momentum indicators and trend following
-- Elliot Wave theory and Time cycles
-- Trading plan formulation
-- Analyzing inter-market
-- DivineGrace.in will teach you all the aspects of technical analysis in detail so that you can make better judgments and attain success in the stock market.
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