THE STOCK TECHNICAL ANALYSIS
Interaction on stock price analysis, in fact, the basic analysis is not the sole analysis tool used only by investors and analysts. Many people embrace another way called Stock Technical Analysis. For them, compared to basic analysis, stock technical analysis is considered more accurate to generate investment recommendations. Some say that technical analysis is more than science.
In principle, technical analysis is a way of investing in investment instruments, which uses historical data on other market indicators to increase stock prices and other devices, volume and investment decisions. happens. This analysis can be applied to stock exchange, foreign exchange market, alien exchange or any market whose prices influence and demand movements.
Differences in Basic and Technical Analysis of Stock Investing
If the basic analysis uses more corporate indicators to analyze the stock value of a company, unlike, stock market analysis and other devices use more market data. Since market data is usually presented in graphics, it is more likely to engage in such graphics than in comparison to financial statements issued by technical analysts. Therefore fans of this flow often receive charity as a charity.
In the past, the purpose of stock technical analysis, using prices, supplies and demanding figures, is how the future demand and supply are done, and analyze stock prices that can be created by it. This is why the stock price movements have to be identified once again or identifiable and then exploited for springs. Technical analysts also believe that due to the existence of new information in the market, the process of changing stock prices will have to follow a specific trend. After finishing these things, technical analysis is used when availing profit (profit), reducing damages (cut loss), starting stocking or starting positioning (wait and see) .
Basic analysis and technical analysis, which is a better? Technical analysis error rate is relatively high compared to basic analysis. But, if we are administrators and use the right tools, stock technical analysis may be equal to basic stock analysis. Buying less sales in principle, buy cheap sales expensive.
Analysis of stock prices and trade volume is the main source of stock analysis of stocks and graphics are a source of data to show. The volume of the commercial volume will be used to evaluate the market conditions and predict future pricing trends. Stock prices change or decrease will usually be associated with the increase or decrease in the commercial volume. After a very large volume of sales, a specific pattern reduction in the pattern will usually be translated, which will experience the market (stock deficit).
Technical analysis of stock market use more. Therefore, technical analysts prefer to pay attention to the movement of stock in stock instead of seeing financial statements or instead of reading newsletters about issuing news stories. Their job is to discuss the changes in stock prices, to learn how to think or think of other parties involved in the exchange. Analyzing the stock price, they expect hearing price movements through the data presented in Form graphical (charts).
Pattern identification of a tendency or stock value movement is the main objective of a technical analyst, with the hope to buy, hold or sell signals. There are only a large number of stocks to analyze the technical analysis, i.e. the value of transaction (or other devices) in the stock and value of transaction. Technical analysts prices are in four categories: opening price, highest price, low price and closing price.
We all believe that stock prices can grow slowly or slowly and slowly slow down so that these peaks can be formed or flat on the chart. In the attempt to analyze stock prices and the trend of change in stock price, charts are directed by two important ideas. First of all, prices run on a particular trend and others, the trend will continue until the trend changes.
To give you an idea about how to work a job of The Stock Technical Analysis with the most commonly used and easy to understand, such as :
Moving Average (MA)
Moving Average (MA) or by other name it is an increasing average, which is often one of the stock price analysis methods in the technical analysis of the stock. Moving Average (MA) is the average stock price in the previous average period and then the market has been plotted in the chart with the actual stock price. During the five business days, the MA obtained from the average stock price, for example, is written as MA-5. MA, who has proved that the 15-day average price was written as MA 15. Therefore, the average average of the stock indicates the rising average. The usage value data is generally the closing price (the end price).
Create an X graph (Horizontal) and Y (Vertical). X axis represents the day (date) and Y axis represent the value. Then calculate the average stock price for 10 days, including today (MA 10). Contact average price points in the MA line. At the same time, the price-closing price points (the original price) every day depends on the same graph as long as you want. For long time MA curry and original curve curry will make 2 pieces.
The way to analyze this is that the actual curve enters the MA curve with a higher level of trading volume, giving it the correct signal signal to buy the stock. On the contrary, if the original curve enters the MA curve with the top commercial volume, it indicates selling. After the price of stock stock, the higher trading volume is interpreted as the market will improve the signal signal. Market signals will worsen (change) as a result of change in prices change after the price trading follow-up volume decreases.
The Double Bottom and Top
The next method of stock analysis of the stock is "Double Bottom and Top" method. Double-head, this pattern is formed when the value of the stock changes to a certain level, then down and then (with small trading volume) is the same as the previous highest cost level and then re-declining. If the event repeats itself again, its curve which will be two peaks (such as letter M). Stock exchange analysis shows that the market has failed to break the upper level limit twice. If the price reduces to break the previous low level (before the second peak), it shows that the trend of movement of stock movement continues to decrease. This dual-top pattern provides a signal to sell instantly.
Contrary to the double-head pattern is the double-down pattern (such as W). With that logic, this pattern gives a hint to action because it is predicted that the price will continue to grow.
The Ascending and Descending Triangle
The technical analysis method of stock triangle (triangle curve pattern) is divided into two, i.e. the Ascending triangle and the analysis of descending triangle (lower triangle). Analysis Triangle is set when there are several canals which are less than some peaks which are equal to the same. In other words, there is a lack of change in stock prices between the horizontal lower border that lacks a decline. If the trading volume increases the price by lower border, it provides a signal to sell because the stock price analysis is predicted that the price deficit continues.
When synchronous triangles are made, stock pattern movement follows contrast pattern of the nesting triangle. This pattern provides a signal to buy stock because it expects the price to continue.
There are some examples of simple technical analysis methods in stock, there are many other ways in which stock prices analyze more parameters with multiple parameters. Usually analysts use many methods at the same time so that the stock price analysis and the investment decision results take more accurately. There are many computer applications to calculate stock formula's fastest technological analysis, you simply enter database stocks and are ready to analyze some graphical ways of stock-pricing movement.
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