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Showing posts from September, 2020

Moving Averages-Important Investing and Trading Tool

Moving Averages-Important Investing and Trading Tool We all have studied Moving Average in our lower standards either in Mathematics or in statistics but at that time we didn't work on its implementation which we are going to study today. We know that average is just an approx calculation we do to reach on a specific conclusion, it cannot give us exact information about anything. In the stock market, we cannot take everyday data at the same value because it is information sensitive data. If we talk about only Moving Averages, then it would be a simple moving average where we have given equal importance to each and everyday data. Date                         Closing price 1/01/2020                      99 2/01/2020                      100 3/01/2020                  ...

Volume Bars-Significance and Application

  Volume Bars-Significance and Application Volume Bars-Significance and Application Volume plays a very important role in technical analysis. We can see the volume Bars in each and every technical chart. We will see how volume bars works and why it is of great significance while taking the trading as well as investing decisions. First of all, we will understand the volume in stocks and how it would be counted : Trading of 100 shares = Buying of 100 shares+Selling of 100 shares We can understand like this, if anybody wants to buy the stocks then he/she can only buy them if anyone wants to sell them. When someone provides a supply of the stock in the market then only the demand can be fulfilled. one has 100 stocks and he sold them to another party and he bought 100 from him so the quantity traded for the stock is only 100 rather than 200.  Many people were confused about this and treated this with 200 traded quantities. Volumes indicate how many shares are bought and sold over a...

What is Support & Resistance-How we can differential between them?

  Resistance-Support-Levels What is Support & Resistance-How we can differential between them? Through different candlestick patterns, we learned how we can apply stop-loss and buying and selling points but we yet not discussed the targets of the stock. Through Support & Resistance, we can find out the target price of stock while buying or selling them. We will learn it with examples. Support Support in the technical analysis means the Support trend line which stops the price of the stock to fall further or which gives support to the stock at that level. The important point here to note that support levels of the stock are always below the current market price of the stock. There are maximum chances that when the stock prices touch the support trend line of the chart then it will consolidate and rest, then again start moving up, support of the stock plays a very important role in technical analysis as it will be also a buying opportunity for traders as well as investors. Be...

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