Saturday, 30 January 2016

{LONGTERMINVESTORS} How to use Stochastics Indicator in Trading

Technical analysis is a science of forecasting the price of stock/index/commodities based on price and volumes data.

Technical analysis is practiced in two main categories

  • Charts Patterns
  • Technical Indicators

Chart Patterns -- A chart pattern is a pattern that is formed within a chart when prices are graphed. In stock and commodity markets trading, chart pattern studies play a large role during technical analysis. When data is plotted there is usually a pattern which naturally occurs and repeats over a period of time.

Technical Indicators -- Technical Indicator is a result of mathematical calculations based on indications of price and/or volume. The values obtained are used to forecast probable price moves and trend in a particular stock/index. Indicators help you assess the market for its momentum, direction, etc.

Technical Indicators are of two main types

  • Leading Indicator
  • Lagging Indicator


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Rgds,

Bramesh

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