Basics Technical Analysis
Basics Technical Analysis
Basic Technical analysis is basically reading of charts and trading according to that. Technical analysis has proven to be a beneficial tool for risk management, which may be a major stumbling block for many traders. Technical analysis may be applied to any market provided a trader knows the concepts and principles, making it a versatile analytical tool.
Whereas fundamental analysis seeks to determine a market’s intrinsic value, the technical analysis seeks to discover trends that are often caused by the underlying fundamentals
The following are some of the advantages of using technical analysis
- It can be used on any market for any period.
- Technical analysis is an approach that can be applied on its own.
- Traders can use it to spot market trends.
You might wonder that is it that technical analysis is just a one-way approach well its not, technical analysis of two types:-
- Top-Down approach
- Bottom-Up approach
Top-Down approach – Top-down approach is for a short-term investment, In the case of equities, a trader would initially focus on economies, then sectors, and last firms. Traders that use this strategy are more concerned with short-term gains than with long-term valuations.
Bottom-Up approach – Rather than taking a macroeconomic picture, it concentrates on individual equities. It entails looking for potential entry and exit points in a stock that appears to be fundamentally intriguing.
Why IIGFM
- Small capacity classes to make students comfortable
- Team of best technical analyst and years of experience.
- Expanding your knowledge as you gain experience.
- Live trading sessions
- Timely virtual meetups to revise.