What Is Technical Analysis?

Today, through this blog post, we will try to understand What is technical analysis? If you want to invest in the stock market, then you should know fundamental analysis. Similarly, if you want to trade in the stock market, then you should know technical analysis. This analysis is based on charts, indicators and price action.

Table of Contents

Technical analysis of stock, in the stock market is way to predict the future price movement of the stock by analyzing the price, volume and other things of the stock. Technical analysis helps the trader to understand the movement in the price of stock. You can use it for taking all types of trades or investing, such as commodity, currency market and others. With technical analysis, you can find out, what has been the price and trend of the stock in the past day, week, month or year.

And by keeping this in mind, you get information about what will be the price and trend of the stock present. Due to which the trader can take the right decision and trade in the stock market. And technical analysis is also done with the tools of chart patterns and indicators.

How to do technical analysis?

Chart Patterns

Technical analysis is done in an easy way by using chart patterns. Technical analysis is done in the stock market by using different types of charts.

Indicator

Technical analysis is done in an easy way by using indicators. Technical analysis is done in the stock market with the help of various types of indicators.

How many types of charts are there in technical analysis?

1. Line Chart

Line chart, this is one of the common simple charts, in this chart, the line starts from the left and end on the right. This line shows the price of the stock. And it also shows the choosing price of a stock or index. And this line chart helps you a lot in understanding the general movement of the stock.

2. Bar Chart

Bar chart is one of the important charts, in the bar chart, a long line indicates the lower price and high price of the market. And two small lines on the left and right indicate the opening and closing price of the stock. Different colors are used in the bar chart to show the difference in prices.

3. Candlestick Charts

Candlestick chart is the most commonly used chart in the stock market. This chart is called candlestick chart, because it looks like a candle. It has a candle shaped body, and a small line at the top and bottom. This line is also called upper week and lower week. The highest point of the upper week indicates the high price. And the lowest point of the lower week indicates the low price. In this chart, red and green colors are also used to mark the body of the candle.

How many types of indicators are there in technical analysis?

Moving Average Indicator
Bollinger Band Indicator
RSI Indicator
VWAP Indicator

Disclaimer: The information written in this article is for educational purposes only. If you want to invest in the stock market, you should learn about the stock market yourself or take advice from a financial advisor and certified expert. The stock market is subject to risk. Before making any investment, you must take expert advice.

Conclusion

In this article, all you regular readers have been told in detail about What is technical analysis? And other information related to technical analysis has also been given to you. We hope that you liked this information very much. You will like, share and comment on this article.

FAQ

1. How is technical analysis done?

Chart patterns and Indicators are used to perform technical analysis.

2. How many types of charts are there in technical analysis?

Technical analysis includes, line charts, bar charts, candlestick charts and other types of charts.

3. How many types of indicators are there in technical analysis?

Technical analysis includes, Moving average indicator, Bollinger band indicator, RSI indicator, VWAP indicator and other types of indicators.