Search This Blog

Popular Posts

Friday, February 4, 2011

What is technical analysis of shares and stocks?

The technical analysis is the study of stock prices irrespective of the fundamentals of the company.

Technical analysis (TA) is done on the basis of OHLC (open, high, low and closing price) and volume of the script on various time frames like 5 minutes, 30 minutes, daily, weekly, monthly etc.

The prices of the a particular script or share are depicted in chart form for a particular period of time and with the aid of various studies like candle sticks, bars, patterns, oscillators etc. expected move and direction of the share/script is figured out.

Technical analysis of share requires specific software designed to transform the history price data of a specific share into chart form like this.

No comments:

Post a Comment