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Technical Analysis

Technical-Analysis-of-a-Stock-TrendTechnical analysis is one of the most  effective methods used to analyse the stock market.This method also helps investors in predicting the future stock prices by analyzing their historical market performance. The basic principles of this method are formulated after decades of careful study of study of stock price and volume movements.



Technical analysis uses different  types of price charting patterns such as head and shoulders,moving averages and top/bottom pattern to analyse the share prices.It also uses different types of  techniques to correctly interpret the meaning behind the stock price and volume movements.The most important techniques used to analyse the price and volume movements are  candlestick charting, Dow Theory, and Elliott wave theory.

Technical analysis is quite different to the fundamental analysis,as the latter method gives importance to the company fundamentals rather than the historical price movements of the company stocks.


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