The technical analysis is becoming the
choice of almost everyone in the stock market. Especially, the youngsters want
to trader into the stock market for intraday, short term or medium term point
of view. In this case, technical analysis is one of the best tool to predict
the stock price buying or selling level and exit level too. Let us learn about the technical analysis in
very simple way.
What is technical analysis?
Technical analysis is a way of
predicting or analyzing the price movement of stocks in the stock market. This
analysis provides an estimate of something that is based on the behavior and
movement of stocks compared to market present and past movements in relation to
a given period. This analysis is based on market trends and is a very important
concept considered by active investors in the financial markets.
The person who is considered an expert in this
technical analysis is called a technical analyst and can advise investors on
stock price movements in the stock market. These technical analysts will be
SEBI registered analysts.
Why Technical analysis is important in
the Stock Market?
Stock market is very volatile in nature. It is
not an easy task to predict the volatility of the stock market. It requires
skills to know the buying or selling price level of a particular stock. In this
Technical analysis plays very important role. By studying technical analysis,
one can help investors by suggesting when and where they will invest their
money to get a better profit.
How you can become technical analyst
In nutshell, The technical analysis is
a back bone of the traders for predicting the market trend as well as stock
trend. With the use of the stock market trader can earn profit in short term or
may reduce his/her profit by using technical tools like charts.
Piyush Sharma is a long-term equity investor and founder of MultibaggerStockIdeas.com. With over 15 years of experience in Indian stock markets, he shares research-backed investment insights, personal lessons, and practical strategies for identifying multibagger stocks early.
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