Best Technical Analysis Course in India

More About the Technical Analysis Course

What is Technical Analysis?

Technical Analysis uses charts, graphs, and trends in the market to determine or forecast any particular stock's outcome rather than studying any company's financial reports.

In a Professional Language

Technical analysis is a trading analysis tool used to evaluate the future value of investments and identify potential business paths by analyzing statistical trends or patterns gathered from doing business, such as price movements and volumes.

Unlike the other major tool – fundamental analysis, which aims to assess a security's value based on its financial reports or statements, technical analysis is all about studying the price and volume of the security. It is more inclined towards microscopic factors like the supply and demand of the share. Technical analysis is generally used to create short-term trading predictions from various charting tools.

A Brief History of Technical Analysis

This major form of technical analysis as it is today was instigated by Charles Dow, and Dow's Theory around the late 1800s formed its foundation. Today, technical analysis has evolved and considers hundreds of patterns and signals inferred from trends developed over decades of research.

Who Should Join the Technical Analysis Course at The Thought Tree?

• Bankers
• Traders & Investors
• Dealers, Sub-brokers, Relationship Managers, Asst. Relationship Managers, Professional Stock Broker, Investment Consultants, Portfolio & Fund Managers, Wealth & Treasury Managers, Researchers, etc.
• Those looking to pursue a career as an Analyst or a career in financial services
• MBA & BBA Students
• Anyone who wants a job
• 10+2, Students Pursuing B.A./ B.com. /B.Sc.

Why do Traders use Technical Analysis?

Traders are people who trade in the stock market daily. They profit from small movements in the price of security. They inject capital to get a good amount of return from the market. But they must do a good amount of research before getting into the game. Technical analysis is not wholesome research and is not foolproof, but it has advantages if you know how to read between the trends. To get in-depth knowledge of technical analysis, join our Technical Analysis Course.

Objectives of Technical Analysis

1. Price Forecasting

Technical analysts seek to predict the movement in the price of any instrument that is trading virtually and generally influenced by the forces of supply and demand, including securities like equity securities, debt securities, derivatives, and currency securities. Many view technical analysis simply as the study of supply and demand, and the forces shown in the movements in the market price of security prove so. Technical analysis is most commonly applied to price movements, but some analysts track numbers other than price, such as – volume, interest rates, bands, averages of stats, etc.

2. Relative Strength

There are tons of patterns and trends throughout the stock market that researchers have developed to aid trading with technical analysis. Technical analysts have also begun with numerous types of trading systems to help them predict price movements and trading based on the same. Few indicators mainly focus on recognizing the current market trend, considering the areas that support and areas that are resistant. In contrast, others focus on evaluating the strength of a trend and its potential or ability to continue. Basic and most-used technical indicators and chart patterns include line trends, RSIs, DMAs, and momentum indicators.

What are the Types of Technical Analysis?

The more accurate question should be – What are the types of Technical Analysis charts used?

Gladly explained here! There are 3 main types of charts used in technical analysis – candlestick, bar, and line charts. All 3 represent the same data but are visually different and have different ways of displaying the info.

A candlestick is a way to represent data about the movement within the price of an asset. Candlestick charts are among the foremost tools of technical analysis, allowing traders and investors to predict price info effectively and from some price bars.

Again, Bar patterns are short-term patterns used for timing the trades and identifying rational stop-loss orders. Bar patterns are almost like candlestick patterns, and every short-term trader knows this fact.

It should be noted that bar patterns play an important role once they appear during a strong bullish or bearish trend near the tip of the trend. Like candlestick trends, bar patterns are short-term and may imply a reversal of available prices in another direction.

Bar patterns may be employed in any period of time, be it 5 minutes, 15 minutes, hourly, daily, weekly, monthly, etc. The longer the amount, the more important the bar patterns are in relevance to the scale of the following movement.

A line chart is a summarized representation of the historical price trend of an asset that connects a series of observation points with a solid line. This is the foremost basic chart utilized in finance and typically represents a stock's closing prices over time. These charts may be used for any fundamental measure, but usually, they use daily price changes.

A line chart gives traders a transparent view of how a stock's price has changed over any specific period of time. Since line charts typically only display closing prices, they reduce unnecessary info at less critical times of the trading day, like open prices, high-lows, and so on. Line charts are fashionable with investors and traders because closing prices are quite common data associated with a stock.

How to do Technical Analysis?

There are two different approaches to technical analysis: the top-down approach and the bottom-up approach. Short-term traders take a top-down approach, and long-term investors take a bottom-up approach. To get started with technical analysis, follow these 5 essential steps.

1. Begin with choosing or developing your trading system or strategy.
2. Choose the securities you want to work with, according to step 1.
3. Open your brokerage account with a brokerage that supports your securities and provides the chosen technical analysis tools.
4. Track your securities with different levels of tools and functionalities.
5. Using additional tools or software will help.

To learn technical analysis in detail, the suggestion is that you enrol in our Technical Analysis Course.

Difference Between Technical Analysis and Fundamental Analysis

Best Books for Technical Analysis

Here are some books on technical analysis

• Getting Started in Technical Analysis (written by Jack Schwager).
• Technical Analysis Explained by Martin Pring.
• How to Make Money in Stocks (written by William O'Neil).
• Japanese Candlestick Charting Techniques (written by Steve Nison).