Saturday, 22 September 2012

How to start learning technical analysis in stock market

Introduction

There are "n" number of books, articles, web links and various other resources to get adequate information about this subject. However I feel the need to condense as much as I can and provide a separate post for you to refer back whenever you want to

This post is especially for folks who consider themselves as novice/intermediate in experience when comes to technical analysis

Technical Analysis

It is a vast ocean wherein research has been happening since 1800s and it continues to happen. It works on mathematical & statistical formula built over a period of time to understand why stocks move up or down in a particular fashion

Following broad level understanding is required to touch base on each topic the following way

1. Technical Chart types - Candlestick (I prefer this), OHLC & Line
2. Technical Indicators - Lagging & Leading
3. Crowd Psychology - Elliot Wave formation
4. Support & Resistance - classic pivot point, camarilla, woodie, Fibonacci retracement/extension (I prefer this)

Technical Chart Types

Candlestick Charts

There are so many links available online and as well books to give a complete picture of how the candlestick charts are used in stock markets

Basics of candlestick charts - Following links can be used as reference to understand as to what is a candlestick chart and how to construct it


Candlestick chart patterns


Candlestick chart video tutorial









No comments:

Post a Comment