Hello dear reader, in today’s article, we are going to know what is technical analysis, because whenever it comes to investing in the stock market, the matter of analysis arises in front of the investor, because Investing in the market without analysis is like hitting your head on a stone. That’s why analysis matters a lot before going into the market.
Let us tell you that there are mainly two types of analysis in the market, first is fundamental analysis and second is technical analysis i.e. technical analysis. In today’s article we will learn to do technical analysis. So let us move ahead without any delay –
Technical Analysis in Stock market ?
Technical Analysis – Market analysis is mainly divided into two parts, first is Fundamental Analysis and second is Technical Analysis, Technical analysis is especially used for short term trading in the stock market. Let us tell you that with the help of technical analysis, the trader can analyze Share Price Movements, Moving Average , Trends, Trading Volume, Bull and Bear market in the stock market. can analyze
This method of analysis is primarily associated with equities , but is also used for individual securities.
Dear Reader, Compared to Fundamental Analysis, Technical Analysis is used to easily understand the movements of the financial market, and let us tell you that it is used to predict the direction of financial market prices based on historical volume and price movement data. There is a method. Through technical analysis, one can predict the movement of the stock on the basis of past data. And you can easily analyze the chart of stock fluctuations.
Fundamental Analysis V/S Technical Analysis
Dear reader, let us tell you that in technical analysis, more attention is given to historical data. Because technical analysis repeats history, a stock’s trend can be evaluated based on historical price and volume data. Whereas if we see that fundamental analysis focuses on the company’s financial management and economic policies, business model, management, capabilities etc. Fundamental analysis is a common method used by stock participants to analyze stocks.
The biggest purpose of doing fundamental analysis is that any investor can make estimates about a company before investing in it for the long term.
Whereas if we talk about short term investors and traders, then technical analysis is considered better for them and fundamental analysis is considered better for long term investors. Let us tell you that both technical analysis and fundamental analysis are used to forecast the future price of a stock, although different data are used to conduct the analysis. The entire theory of technical analysis revolves around trends.
Prices to be entered during training
Look at the ways in which price movements are monitored on a daily basis to understand trends. There are four types of prices recorded during a day.
- Open Price – The first price to be executed during trading when the market is open.
- High price – This is the highest price at which the trade is executed during the trading day.
- Law Price – is the lowest executed price during the trading day.
- Closing Price – This is the last price above which the market closes. This is an important signal of the market, it shows whether the market was bearish or bullish today. It is believed that if the open price is less than the closing price, then the market was bullish and if the closing price is less than the open price, So there was a recession in the market.
How to do technical analysis?
Dear reader, there are many types of analysis done inside technical analysis, but two such tools are also included in technical analysis, which are considered to be the favorite tool of many traders, because of these tools, a trader gets to know the direction of the market. What is going to be the next move of the market, let us tell you these tool names
Gann Reversal – This tool was created by Wd Gann, through this tool, you can find out the direction of the market, this tool has an excel sheet, inside which you have to enter the price of the market, so that you get some level. and some date is found, which is understood that this upcoming date is going to change the direction of the market, then you can use this tool to find out the direction of the market
Fibonacci Retracement – This tool works like 1 indicator, when you use this tool on your chart, then you have to apply Fibo tool on that chart above its High and above its Low, now by passing some level through it comes in which 0.5 level is most important when the market hits this label then there are chances of reverse of the market
charts used in technical analysis
Dear reader, let us tell you that we have written a complete article on the chart, you can read it, how to understand share market chart.
But still for your information we are giving the basic information of the chart here.
1⃣ Bar Chart
Bar chart is used for the specific time movement of any share or index and it can be used to show the opening, high and low of any stock or commodity and forex share for some time period like 15 minutes time frame, one hour, one day etc. It is used to know the law and closing, let us tell you that in technical analysis, bar chart or any other type of chart like candlestick chart or line chart is used to show the movement of stock price. Is.
2⃣ Candlestick Chart
Dear reader Candlestick chart also shows the price movement in a way like a bar chart. In this too, it is used to know the opening, high and low closing of a stock or commodity and forex share for some time period like 15 minutes time frame, one hour, one day etc. As you know, in a bar chart, the stock is displayed in the form of bars. And in the same candlestick chart, the stock is displayed in the form of a candle. Candlestick charts and bar charts are easier to understand than any other chart pattern,
In bullish market, candles are displayed in green color and in bearish market, candles are displayed in red color. In some software, bear is also represented by black candles and bullish by white candle. But both mean the same thing.
3⃣ Line Chart
Line chart is completely different from the two charts mentioned above, although its work is the same, but as you can see from the name itself, it has a line, so let us tell you that it uses only 1 line to assess the price movement of the stock. It is shown, but it is a bit difficult to understand the line chart, because here the open high and closing low have to be assessed only through lines.
4⃣ Point And Figure Chart,
Let us tell you that point and figure chart bar chart is a charting technique to show the price movement of a stock like a candlestick chart. And this technique was introduced by an author named Hoyle in his book in 1898. Hence it is included in an old chart technique.
There are two types of figure in point and figure chart, zero and cross in technique. Here zero is used to represent the red ie bearish market. Whereas the cross is shown in green ie bullish market.
Key Points Technical Analysis
- Bull – Bull market is a situation in a financial market in which the prices of an asset or security are increasing or are expected to increase.
- Bear – If the market goes downwards in the coming time, then it is said that you are bearish about that stock. Similarly, when the market is going downwards for a long time then it is said that the market is in a bear market.
- Intraday – Buying and selling of shares in the stock market within a day is called Intraday Trading.
- Swing Trading – Today buying any stock and holding it for more than one week and then selling it is called swing trading.
- Postional trading – This means that buying any stock today and holding it for one or more than three months and then selling it is called positional trading.
- Short Term trading – This means that buying any stock today and holding it for three or more than 1 year and then selling it is called short term trading.
Conclusion: Technical Analysis
Dear Reader, in today’s article Technical Analysis in Hindi, we learned how to do technical analysis and told you what technical analysis is, how it works in the stock market, what chart patterns are there in it and much more. You have read inside. And we hope that you would have found the article Technical Analysis in Hindi quite knowledgeable.
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