Best Ways to Learn Technical Analysis

It is important to learn technical analysis along with fundamental analysis. Because technical analysis generally identifies the opportunity of trade and helps the trader maximize his investment using various methods, disciplines, and thumb rules. We shall cover all the important topics on this page.

The first thing you can do is learn Technical Analysis of Stocks India, some basic and ground level knowledge on technical analysis via some books, offline or online courses, educational websites, workshops, etc., some might be free, and some paid.

You can go to the official website of the NSE, and there also you can find the complete course of technical analysis. If you Google Best Technical Analysis Software for Indian Stock Market, you will see a huge list. Choose whichever you feel best.

Technical analysis is a method for predicting the price direction. This prediction can be made based on the price and volume of the past.

Let us see how to perform the technical analysis:

You must see the market situation first, have the trading strategy ready based on the market scenario, and select in which financial instrument you want to start investing.

Now, coming to the analysis part, ensure you are only using technical indicators on your screen, or else you may see too many indicators that might confuse you. As you have analyzed the charts and patterns, please note them or highlight them.

You can try following the below steps while using technical analysis:

1. Identifying the price trend: A trader must first check the trend. It can be either with the flow or against the flow. You must apply a different approach when you see an upward, downward, or sideways trend.
2. Define the support and resistance levels: these are the points where the price may take a reverse turn. A support level is where the price stops moving downwards and goes upward, while at the resistance level price pauses from upwards and instead falls.
3. Defining the entry and exit points: Though the support and resistance levels define the excellent entry point for the traders, technical traders also take into consideration some technical indicators such as the Average True Range(ATR) and Relative Strength Index (RSI).
4. Risk management: With the help of technical indicators and your risk-to-reward ratio, you must decide stop loss. Identify the entry position. Plan a strategy and define the stop loss.

What do technical traders look for when analyzing? It is not only performed by technical traders. Those who have done fundamental analysis also perform technical analysis to pick the right stock.

Charts with different timeframes: charts are available in different timeframes. The most common time frames used are:

• 5 min chart
• 15 min chart
• Hourly chart
• 4 hourly chart
• Daily chart

Generally, those who are into intraday options trading check on the first three charts, and those involved in a positional options trade, for a longer period, may use 4-hour, daily, or weekly charts too.

Candlesticks-(single and multiple): Candlesticks are another most common method to determine price movement. A single or multiple candlesticks are drawn, showing the highest and lowest price of that particular time duration.

There are many more technical indicators that you can use, such as; Moving averages, Pivots, Fibonacci numbers, Fibonacci retracements, Fibonacci extensions and Momentum indicators, etc.

No matter how Best Technical Screener for Indian Stocks you might have, it does not provide 100% accurate data. The intelligent trader will check the signals from various indicators and will invest some time in making a plan B, that is, what if the market turns out not as expected, so you should be prepared with all circumstances rather than imagining that you have earned lakhs of rupees.

For years, there has always been a debate over whether this technical analysis works. It may happen that two different traders having different approaches in mind interprets the same data in a different way, so it is entirely on a person how good or bad he can read the charts.

Kalpesh is a experience content writer having vast experience in writing articles of various fields like health, finance, education, textile etc.