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            STOCK EXCHANGE GUIDE          

•  Excellent technical indicators in the stock market

In order to be a successful investor, we need to be able to develop two different skills: basic analysis and technology. If you really want to understand what is going on with your shares, they are very different, but equally important.

Basic analysis should penetrate the organization's economy. Basic analysts study everything that affects the value of an organization. Including major and minor economic factors as well as organizational strategic planning, procurement and labor relations.

Technical indicators, collectively referred to as “technical”, do not analyze any component, such as profits, revenue, and profit margins of the main business. The most effective use of technology for a long-term investor to help identify the best points for entry and exit stock by analyzing long-term trends.

• What is a 'technical indicator'?

In the technical analysis of stocks, a technical index is a statistical based on information of public interests intended to estimate historical price, volume, or (in the case of futures contracts) financial market direction. Technical indicators are a fundamental part of technical analysis and are often designed as chart models to explore market trends. Indicators are often used to indicate where a price is going in the price chart data whether the price is in an "over-buying" position or in an "oversold" position.

Many technical indicators have been developed and traders are developing new alternatives with the aim of getting better results. New technical indicators are often re-tested in data values ​​and volume volumes to see how they work in predicting future events. Technical indicators predict future price levels or a general security price index based on past models.

• There are many indicators shown in the chart, but here are some of the key technical indicators you need to know.

• End / distribution line

The join / distribution line (A / D line) tries to find out if money goes in or out of the filter. When the A / D line is tilted upwards, one can expect new money to go into security. ***** The opposite is true when you walk down the aisle. In most cases, this indicator is very close to stock pressure, but moves a little faster than the basic defense and can be used to indicate whether there is a close rally or a sell-off.

• MACD

Mobility-Line / MACD integration rate / MACD is probably the most widely used technical indicator. In addition to the trend, it shows the speed of the stock. The MACD line compares short-term and long-term stock pressure to predict its future direction. Simply put, it compares two moving scales, which can be set at any time. The average 12-day average and 26-day moving averages are used.

When the short-term line exceeds the long-term line, it is an indication of future stock activity. When a short-term line goes below the long-term line, and then falls above it, the stock usually trades higher. Similarly, we can predict sales when the short-term line reaches below the long-term line.

• Pattern of head and shoulders

Head and shoulders are a chart pattern in which the stack rises first and forms a “shoulder” and then falls. We build a "head" above the previous trip and then climb to shoulder level and fall below the first shoulder before falling again, thus building a second shoulder.

Technical analysts believe that the pattern of the head and shoulders is a sign of change. If one of your assets develops such a model, it may indicate that there may be future sales.

• Pause

Gaps occur when the stock opens at a higher or lower opening price than the previous day's closing price. This difference could be the result of other news releases before the market opened. This leads to a massive movement during later trading hours and reaches the stock level during the normal trading day. Spaces are important because they form new lines of support or resistance to safety. Vendors use these support and resistance areas to set sales orders such as stop loss or limitations.

• Double up or down

This chart pattern also predicts changes. Finding this chart model is a very simple process. In the case of double exposure, in both cases the stock assesses a certain price level and in both cases the stock affects resistance. On the other hand, a double downside occurs when the stock falls at a certain price level and finds support in both cases. A double stock indicates future sales, while a lower stock indicates that it is ready for higher trading.

 

Traders working in the markets use technical indicators extensively because they are designed primarily to analyze short-term price movements. For a long-term investor, many technical indicators are of little value because they provide very little light on the core business.