There are two ways to earn money from the stock market

1. First is investing
2. Second is trading

Technical Analysis Basic Concept Step by Step Guide

If you want to invest and earn money from it, then for this you have to do Sectoral By Sectoral analysis of a stock, then you have to analyze its business and then you have to do its fundamental analysis and then analyze its valuation and then analyze its management and after doing all this, you invest in a stock for the long term

On the other hand, if you do trading, then you have to do technical analysis of the stock in which you basically look at the chart and hence on technical basis you take the trade and try to earn profit in the short term!

Technical Analysis means studying the chart

☆What Is Technical Analysis

In Technical Analysis, we estimate the ups and downs in the price of a share based on its price and volume

Through Technical Analysis, the trader decides to buy and sell a stock, this is done for short periods!

In this article, we will talk about Technical Analysis in full detail, you guys just stay till the end with 24 News Campus Online

Demand and supply are the reason behind the increase and decrease in the price of the share and on this basis the price of the share increases and decreases!

Suppose a lot of people suddenly start buying the share in very large quantities, then the price of that share starts increasing and if a lot of people suddenly start selling a share, then the price of that share starts falling!

The share market runs on the basis of this demand and supply!

☆Time Frame:- Now this chart can be analyzed in many different time frames!

•Like if you buy and sell shares within a day, from the time the market opens at 9:30 in the morning to 3:30 in the evening, you buy and sell shares for a few minutes or a few hours for small profits, then it is called intraday trading

•Short Term A few days or a few weeks, like you people hold a stock from a few days to a few months

•Mid Term A few months or a few years, in this the investor holds a stock from three months to 1 year!

•Long Term More than 1 year, in this the investor holds the stock from one year to 10 years, 20 years or even 30 years!
☆Candlestick Pattern ☆
Candlestick Pattern is a technical analysis method which is used to understand the price movement in the stock market

If you know what is the meaning of candle, then you know that if a candle is green then it means that the price of the share is going to increase there.

If a candle is red then it means that the price of the share is going to fall there!

This candle is basically made up of two things

First is the body of the candle and the second is the candle’s wick which we also call shadow!

The thin stick at the top of the candle is also called Upper Week and Lower Week. The middle part of the candle is called the body. The candle is made up of two things, first wick and second body!

☆Trends☆
There are three types of trends in the stock market

First Up Trend, Second Down Train and Third Sideways Train

Up Trend:- If the price of the share is continuously increasing then it means that the share is in Up trend!

Down Trend:- If the price of the share is continuously falling then it means that the share is in Down trend and is falling!

Sideways Trend:- Sideways train means if the price of the share keeps moving at the same place for many days, then we call it Sideways Trend!

What we have told in this article is easy to read and write but it is very difficult to apply them

☆Support And Resistance ☆
Just like we told about demand and supply, in the same way Support and Resistance is also based a little bit on demand and supply

When the demand of a stock market is high then its price starts increasing and when the supply of a stock market is high then it means that it is being sold and the demand is less! So its price starts falling, this is called demand and supply and also called support and resistance. This is the rule of demand and supply, the rule of support and resistance is the most basic principle of deciding the price of shares in the stock market.

Chart Pattern:- There are many types of chart patterns!

Like there is a W pattern, there is an M pattern, there is a triangle pattern!

Apart from this, there are more than 20 chart patterns which you will have to learn, even after learning all this, you will understand the whole concept of where to buy the share and where to sell the share!

Why is chart pattern important for us?

By identifying the right chart pattern, you can buy and sell the right share at the right time and it helps in guessing the right direction of the stock!

This is the most used method of stock in Technical Analysis!

☆Indicators☆
There are many types of indicators too!

Indicator is such a tool in stock market that it helps to understand whether the price of any share will rise, fall or remain stable. This indicator helps us to identify the right way to buy or sell the stock at the right time!

Let me tell you the names of some indicators which are mostly used in stock market!

eg:-Moving Average,Volume Indicators,Trend Indicators,MACD(Moving Average Convergence Divergence)
ADX(Average Directional Index),Momentum Indicators,Volatility Indicators

The indicator tells the direction of the stock and also shows the strength of bullish and bearish trend and shows the trading volume, risk and fluctuations!

If you learn to use these indicators correctly, then you can do better trading and investing!

And in this way you will understand the basic concept of technical analysis.

We have told you everything that we could tell you in this article!

Conclusion:- In this article, we have told about Technical Analysis, how did you like reading it, please tell us by commenting and for such share market related education and share market related news, stay tuned with 24 News Campus Online. Thank you