Fundamentals of Technical Analysis

 if we talk about what is most important for Technical Analysis, which we must have, and without that we cannot do Technical analysis, that is, what is the basic Fundamental  of technical Analysis, like if we have any vegetable When we go to cook, we need the most important things like oil, salt, spices, etc., and without this the taste of vegetables is not available, similarly the most important thing for Technical Analysis is Technical Analysis Tools.

Technical Analysis Tools in Stock Market

“Technical analysis is a skill that improves with experience and study. Always be a student and keep learning.” – John Murphy

If you are untrained, then day trading in stocks is very risky. But if you have an eye for spotting market trends, then you make profits. Learning about the technical analysis indicators its also call technical Tools and main Technical Tools are Time Series (Daily, Week-Li, etc.) and Price Data (Price & Volume).

Two Fundamental of Technical Analysis tools in Stock Market.

TIME SERIES in Technical Analysis

Time Series is Important Fundamentals Of Technical Analysis tools in Stock Market. INDIAN SHARE MARKET is OPEN from Monday to Friday at 9:15 am, and closes at 3:30 pm, and in the meantime millions of people buy one share and millions of people at different prices. Millions of shares are sold, in such a situation, thousands of shares are bought and sold every second, and thus we cannot keep an eye on all the deals of all, so to understand the price movement of a share, we must first take a time i.e. TIME has to be fixed, this is also called Time frame, the Time frame used in Technical Analysis.

1 Minute Trade

5 Minute trade

10 Minute Trade

15 Minute Trade

30 Minute Trade

Hourly Trade

Daily Trade

Weekly Trade

Monthly Trade

We should have the DATA of TIME in such a way that we can understand all the trades at a glance and DIVIDE it in these TIME FRAME.

To do Technical Analysis we first have to determine the TIME FRAME, which TIME FRAME we want to work between, 1 minute, 5 minutes, or whatever.

Once we decide which TIME FRAME we have to work in, deal with, then we look at the previous DATA of that SHARE in the same TIME FRAME, and do some MATHEMATICAL CALCULATION that in this TIME FRAME What is PRICE CHANGE before?

Now let’s talk about the second element i.e. PRICE DATA.

PRICE & VOLUME In Technical Analysis

Technical analysis is done to understand the FUTURE change in the PRICE of any STOCK, to determine in which direction the PRICE of the STOCK will go, up or down, Therefore PRICE DATA of STOCK is also very important, Two things are important in the PRICE DATA of the stock, In a PARTICULAR time frame of stock, OPEN PRICE, and CLOSING PRICE and LOWEST (LOW) PRICE and HIGHEST (HIGH) PRICE, The share of OPEN PRICE in a PARTICULAR time frame, plus CLOSING PRICE and LOWEST (LOW) PRICE and HIGHEST (HIGH) PRICE as well as its VOLUME i.e. the total quantity of shares bought and sold in that time frame.

You will be able to understand what is the most basic element of technical analysis, based on this same two basic elements, for technical analysis we can understand thousands of deals with between any TIME FRAME, one SUMMARIZE at a glance. What was SHARE’s PRICE RANGE in that TIME FRAME and by how much.

Later, we can understand this PRICE RANGE with the help of a CHART and better looking at the chart VISUALLY i.e. just how PERFORM STOCK is doing.

We will talk further that How to see these basic elements of technical analysis i.e. TIME FRAME and PRICE DATA together on one chat, and by looking at how the SHARE’s PERFORMANCE is able to DECIDE how the stock is working.