Technical Analysis Blog | Dr Savita Satav
Technical Analysis Blog covers topics related to the Stock Market, Technical Analysis, Technical Analysis Strategies, Rules, Tools and Techniques. It further covers Candlestick patterns, Candlestick Chart patterns, Indicators and Oscillators.
Technical Analysis Blog – Blog posts
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What is Technical Analysis
Technical Analysis is a study which predicts future movement in prices based on an analysis of past price data (Steve Nison, 1991).
So in Technical Analysis information like price and volume is put on a chart. After that various candlestick patterns, chart patterns, indicators and oscillators are applied to the chart to predict future movement in prices.
Technical Analysis is universally applicable. That means it can be applied to any financial instrument like futures, stocks, indices, commodities, currencies and fixed income securities.
Benefits | Uses of Technical Analysis
1] Firstly Technical Analysis is universally applicable
2] Technical Analysis helps identify Entry, Exit and Stop loss levels in stocks.
3] Technical Analysis helps traders to analyze and identify stocks for intraday & short term trading.
4] Technical Analysis helps investors to analyze and identify stocks for long term investment.
5] Above all Technical Analysis helps formulate Derivative Trading Strategies.
Read more – Uses | Benefits of Technical Analysis
Candlestick Patterns
Frequently Asked Questions [FAQs]
Yes you can find Multi bagger stocks with Technical Analysis. there are certain Technical analysis Strategies which will give you Multi bagger stocks.
1] The Stock Market consists of Three Trends – The Primary Trend, The Secondary Trend and The Minor Trend.
2] The Primary Trend consists of Three Phases – The Accumulation Phase, The Participation Phase and The Distribution Phase
3] All Information gets discounted in the Stock Market
4] Trend must be confirmed and backed by Volume
5] Stock Market Indices Need to Confirm to Each Other
6] The Trend will remain intact till you get clear signals of reversal.
1] Market discounts everything
2] Price Moves in Trends. Price movements are not totally random
3] History tends to Repeat Itself.
4] “WHATis the price” is more important than “ WHY is the price so”
5] Trend will continue until clear signals of Reversal occur
Yes certainly Technical Analysis works. You can use Technical analysis for Intraday Trading, Short term Trading, Short term Investment and Long term Investment. The most important secret for technical analysis to work is to follow discipline. And you will see how Technical analysis works like magic.
Most traders fail to make money in trading because they do not follow discipline in trading. Discipline with regard to proper Entry price, Exit price, proper Stop loss, proper Reward to Risk ratio, booking profit regularly, booking loss when Stop loss is triggered. To make money in trading the most important requirement is to follow Discipline
Hammer, Inverted Hammer, Hanging Man, Shooting star, Doji, Dragonfly Doji, Gravestone Doji, Long legged Doji, Spinning top. Bullish Engulfing, Bearish Engulfing, Bullish Piercing, Bearish Piercing, Bullish Harami, Bearish Harami. Evening Star, Morning Star, Evening Doji Star and Morning Doji Star.
Head & Shoulders Top, Inverted Head & Shoulders, Double Top, Double bottom, Rounded Top, Rounded Bottom, Triple Top and Triple Bottom, Symmetric Triangle, Ascending Triangle, Descending Triangle, Flag, Pennant, Cup & Handle.
For Trading you need a view on a stock, view on the market. Technical Analysis will help you decide what stock to buy, at what price to buy, at what price to sell, when to book profit, when to book loss, what should be the stop loss. It is important to know Entry price, Exit price, Stop loss before you take a trade.
The best Indicator for Trading is Relative Strength Index (RSI), Stochastics, Moving Average Convergence Divergence (MACD). You should never use one indicator but should use a combination of indicators to be successful in trading. The above 3 indicators work well in trading. Though there are many indicators used for Trading.
No, you don’t need to learn complete Technical analysis in detail. You just need to learn the Technical analysis Strategies for Trading & Investment which work in the real market. That’s enough to make money.
You should learn Technical Analysis Strategies to make money in Trading & in Short term & Long term Investment
1. “Japanese Candlestick Charting Techniques” by Steve Nison
2. “Strategies for Profiting with Japanese Candlestick Charts” by Steve Nison
3. “Technical Analysis of the Financial Markets” by John J. Murphy
4. “Technical Analysis Explained” by Martin J. Pring
5.”Encyclopedia of Chart Patterns” by Thomas N. Bulkowski