Technical Analysis of Stocks
Technical Analysis: The technical analysis analyzes the market and trend of the individuals script (here trend means a direction of the movement) based on the historical data the price and the volumes, with the help of the charts. Technical analysis means nothing but study Charts. Technical Analysis definition: – The technical analysis defines as ”the process of identifying the near future trends by analyzing historical data, primaries prices and value of stocks, with the help of chart”. Now a day’s technical analysis is used in 3 ways: – To study past decades Bull & Bear market trends Supply and demand principle applicability in stocks Buying share at near low price and selling at near high price History of Dow Theory * The Charles Dow is the granddaddy of technical analysis * This theory was developed by Charles Dow in 1897. First, it published in the Wall Street Journal between 1900 to 1902. * To know the overall trend of the market, he developed two