2. HOW TO DO STOCK MARKET TECHNICAL ANALYSIS
SENSEX is an indicator to checkout in BSE
NIFTY is an indicator to checkout in NSE
3. INTRODUCATION
Analysis of statistics generated by market activity such as past price and
volume to come up with reasonable outcome in future using charts as a
primary tool.
Should I take a long position? Should I take a short position? What is
going to be the price tomorrow, next week or next year?
4. Assumptions
The market discounts everything
Prices move in trends
History tends to repeat itself
9. Trends
The meaning of trend in finance isn't all that different from the general
definition of the term - a trend is really nothing more than the general
direction.
A trend represents a consistent change in prices (i.e. a change in
investor’s expectations)
A trend line is a simple charting technique that adds a line to a chart to
represent the trend in the market or a stock.
12. Support and Resistance
Support level is a price level where the price tends to find
support as it is going down
Resistance Level is a price level where the price tends to find
resistance as it is going up
14. Importance of Support and Resistance
Support and resistance analysis is an important part of trends because it
can be used to make trading decisions and identify when a trend is
reversing
15. Aware: Support and Resistance levels
Support and Resistance levels are highly volatile
Traders should not buy and sell directly at these points as there may be
breakout also
16. Moving Averages
It is also known as Thumb Rule
A simple moving average is calculated by taking average of most recent
closing prices of any time period
Exponential Moving average applies weighting factors which decrease
exponentially
18. BIBLIOGRAPHY
Technical Analysis A to Z by Steven B. Achelis
How to make money in Stocks By William J O’Neil
Investopedia (www.investopedia.com)
Trade Tiger terminal (www.sharekhan.com)
Technical Analysis of Indian stock market (www.nse.com)
Technical Analysis of Indian stock market BSE Sensex Index
(Tradersedge India)
19. Thank you
2 THINGS WHICH YOU SHOULD ALWAYS REMEMBER ABOUT
STOCK MARKET
1. Rome was not built in a day, but Japan destroyed in a day
2. If you don’t follow the stock market, you are missing some
amazing drama