HomebeginnerIf you focus on technical analysis, you will become an expert in trading.
If you focus on technical analysis, you will become an expert in trading.
July 17, 2022
Learn technical analysis and become an expert in trading.
We have learned the complete information related to fundamental analysis in the previous article. This makes it easy for us to know which stock will book profit in future or which stock will go to loss. At the same time, we used to invest other people’s total money and we used to lose a lot of our own, but if you have read the previous article properly, then you will not need to rely on other people’s tips or trust to invest money on stocks. This will save you both time and money and you will get to know the good information about the share market. Today we are going to learn about technical analysis in this article. You should also understand this article well like the previous article because it is now necessary to know the deep things in the share market.
We can get money from stock market in two ways that is by long term investment and the other way is by intraday. We have understood how to get money by investing long term through fundamental analysis, in this we select some good stocks and book profit by investing money in them for the next 10-15 years. In the next few articles we are going to know the strategy of long term investing. In this article you can book a good profit by investing money in the share market daily through Intra day. From intra day we can book more profit daily than longe trem investing. But in this loos is more common. That means your money can be 2x, 3x, 4x,…..,10x… in one day, or your money can be Zero in one day.
The highest risk of loss in share market is in intra day, so the analysis of stock in intra day has to be done very carefully and by studying technical things. Also stocks have to be selected carefully, because fundamental analysis is not used in intra day. In this, what is the income of that stock company?, what is its balance sheet? It has no relation. Today we are going to learn about intra day (trading) and for that it is very important for you to know how to do technical analysis of stock. With the help of technical analysis we can book profit in stoke market in 1 min, 1 hour, 1 days time. We will learn how to do this in the following information.
Everyone is looking for ways to make quick money from the stock market. In this way they start gambling in the share market. This is the trading part of the share market, if you invest money in this without learning, then you are really gambling. You are investing money in this only by luck, you or your friend think that this share profit book is going to be made today so you invest money in this, but because of this people lose. In the share market, things like shares and luck are not useful. Sometimes your luck may turn and you may profite but this luck does not work very often.
Today’s opinion is only that we will tell you information about share market in such a simple way that a student studying in 6th class will understand this information very well. People are very scared about technical analysis, people don’t understand it quickly and all these things go over the head while learning, but today if you read this article carefully and understand it yourself, you will know the movements in the market. Once you understand this, it is very important that you practice it every day. At the same time, it is necessary to know further and more information. Trading is a subject that can not be learned in 1-2 days or 1 month, it should be given time every day, you may have seen on the reel of some social media like instagram or facebook that you have earned profite of 5-10 lakhs. Profite can be earned in a day. But if you are new then don’t invest much money in trading. You should take paper tread with information for first few days. This will not cause you loss and you will get confidence from it and you will get practice and when you start profiting on paper, you can invest little by little money.
The first and most important part of technical analysis is the current trend in the market. Trend means where you want to go with the help of charts in the market. For example, if you are going to Pune from Deeli and board the bus between those two places, you will get off at Pune. Such is the trend in the market. There are three types of trends in the market. 1) up trend, 2) down trend, 3) sideways trend.
1) up trend
When the price of the market is increasing in the market chart, it is an up trend.
You can book good profite after you take CE in up trend.
In an up trend, when the line direction in the graph is up, it is called Higher-High and when it goes down, it is called Higher-Low.
2) Down Trend
When the price of the market is decreasing in the market chart, it is a down trend.
You can book good profite after you take PE in down trend.
In a down trend, when the line direction in the graph is up, it is called Lower-High and when it comes down, it is called Lower-Low.
3) sideways trend
In a sideways trend, the price of the stock is moving up and down between resistance and support on the market graph.
After taking an entry in a sideways trend, we get a loss, because in this the value of the price neither increases nor decreases. So the value of that stock decreases at that point and we get loss. It is not for you to know now, you will know this while working in actual, after some experience.
Candlestick has two types. One is a green candlestick and the other is a red candlestick. The trend of the market is determine according to the patters of this candlestick. We will learn about these patterns in the next articles.
In candlestick what you see green and red in the image is calle its body and the black color lines above and below the body are calle width.
Green candlestick means bullish candlestick, in which the price of the market goes down, which means the price of the market increases. In this, the pice opens on the lower side of the body of the green candlestick and the price closes on the upper side.
Green candlestick has an upper width, it is call its high, that is, the price has gone to that point and returne to the bottom, and the lower width is call lower, because the price has gone down and returne to the place above the body.
Red candlestick means bearish candlestick, in which the price of the market opens below and closes above, that is, the price of the market is in a down trend.
Red candlestick and green candlestick have the same width meaning, the upper width is calle high and the lower width is calle low.
Resistance and support.
If you become an expert in how to place the resistance and support chart. you will be able to understand the movement of the trend in the market. In this, if the price is in an up trend in the chart. the resistance pushes it down above a certain price and the market goes into a down trend. Similarly, when the market is in a down trend. support pushes up the price at a certain distance. the market trend changes and goes into an up trend.
In share market you don’t want to predict with the help of resistance and support because by this you will not be able to earn profite in share market. It is very important to understand price action with these two Techniques. Share market is say that (price never lies). We want to take action based on the price in the market. Some traders don’t even know that the company is old, is there a case against the owner of the company?, is he in jail?, what is the balance sheet of the company?, is the company in profite or loss? It’s like these people have nothing to do with it. It is very important whether the price of the company is increasing or decreasing in the market trading is done from the direction of the price of the company.
When the price of the market is going up, sellers are sitting to book profite at the place of registration. When these sellers sell stock, supply increases and demand decreases, and the price of the market goes into a down trend. When the market is in a down trend, there are buyers sitting at the place of support who are going to buy the stock and book profit, at that time the supply of the stock decreases and the demand increases and the trend of the market changes and it goes into an up trend.
Market price movement.
You must have understood that you have to trade according to price movements in the market, but the market trend is not always an up trend or a down trend. Market is always changing according to timing, stock demand and supply of buyers and sellers.
Market is moving sometimes up sometimes down sometimes sideways. So, you may be wondering that while trading, from what to invest money in the trend of the stock, then we have to invest money in the market from the base of price action and support, resistance at that time.
Trending still has a lot of strategy. What we learned today in this article is only the introduction of technical analysis and the base of the next strategy. You should practice the paper treding using the activity in this articel, this will give you practice and help you to know the next strategy very quickly.