This article is focused exclusively on the application of the analysis technical for the bag of values. Technical analysis is not precise, but often gives a good indication of future actions based on logic prices.
 |
| Predict the movement of the price of the shares on the Stock Exchange |
What is and how does work the analysis technical in the Stock Exchange?
He analysis technical in the bag of values implies the identification of trends and patterns in the movement of the price of an action to predict if goes to go to up, down or towards them sides.
He technical studies the market graphic of an action and uses a reasoning logical to foresee the actions of buyers and sellers and determine so it address and magnitude of them changes of prices.
Charles Dow, the creator of the index Dow Jones Industrial of the Stock Exchange values of New York, was a technical market analyst. The average mobile, however are indicators technical, and not will be covered in this article.
Talk of the different trends and patterns that are can identify in the bag of values. These patterns are formed through any frame of time: days, weeks, months or years.
Levels of support and resistance in the Stock Exchange
Support and resistance levels act as "ceiling" and "floor" of prices of the shares on the Stock Exchange respectively. If the price of the shares is breaks through a resistance or support the price will continue to to up or towards down form continuous.
Normally, an action goes to bounce to above and towards down between the levels of support and resistance. This area of fluctuation of prices is known as the range of contributions, which can last a few days or a few years.
If the price rises above the level of resistance or below the level of support, this is known as a break of support or resistance, as the case may be.
Bullish and bearish trends
An uptrend in the stock is a series of minimum increased, while a downward trend is a series of decreasing maximum. The greater it pending the uptrend, faster is going to end.
Them actions or is move towards up, down or to the sides. If the action is moved sideways and the trend lines are parallel, buy near the level of support and sell as closely as possible the level of resistance wherever possible. It is likely to be a great phase of expansion or recession once the price has moved sideways.
Hopefully useful this will be introductory article on technical analysis and its usefulness as a tool to predict the movement of the price on the Stock Exchange.
