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Technical Analysis

After getting the knowledge about the correct stock it is important to check what is the right time to buy the stock, technical analysis is the mode to be used in this situation.
It generally involves the use of volumes and charts along with another technical indicator to make correct trading decisions. It basically works on the principle that "History Repeats Itself". It tracks past stock prices and presents its future price movements. It does not only serve the purpose to choose correct stock but also aids in choosing other securities such as forex exchange, commodities, cryptos, etc. It does not involve studying long documents, it enables to keep a track of the share movement.

Various factors help to predict the stock movement, such as:

  • Candle Stick Patterns
  • The Support and Resistances
  • Volumes
  • Moving averages
  • Indicators such as MACD, RSI, Bollinger Band, etc.
  • The Fibonacci Retracements
  • The central Pivot Range

The technical analysis lets you book profit on every move of the stock and retards the losses. As it covers the concept of stop-loss which prevents the stock from falling too low.
The correct knowledge about the two courses brings forth a great stock portfolio. They both are very effective techniques to be followed while investing in any stock.