Technical Analysis.
Technical analysis in assessing stock prices focus more on the formation of stock prices by changes in supply and demand without seeing why. The origins of the current analysis used originated from the Dow Theory which is prepared in mid 1900 by Charles Dow.
Excess technical analysis is the analysis of this relatively quick and easy, no need to engage in financial figures are complicated and gives a signal when it is appropriate to invest. Strategy in stock trading by using tehnical analysis include :
Contrary-Opinion is to conduct a transaction contrary to other investors because they think other investors less capable.
Smart Money is doing transaction in line with other investors because they think other investors more capable.
Technical Analysis of Price and Volume :
1. Note the volume of transactions because it is very important in the transaction.
2. The existence of the opening price (open), the highest (high), low (low) and closing (close).
3. The existence of the level of support, called support levels and resistance levels. Support level is below the support level where investors expect a large demand increase with a significant price increase. Resistance level is the level of support over which investors expect the bidding kenaikkkan large with a significant price increase.
4. Dow Theory where the price moves with a certain direction (trend) where there are 3 direction of the trend, the trend of short-term, medium term and long term.
5. Graph or chart is a diagram of an open, high, low and close prices that aim to identify patterns that occur and likely will be repeated in the future. Chart consists of several forms, including candle charts, bar charts and point-and-figure charts.
6. The presence indicators tehnical which is a mathematical calculation applied to the stock price or trading volume. This is done to anticipate future price movements. Tehnical indicators include: MA (Moving Average), MACD (Moving Average Convergen divergent), Parabolic SAR, Relative Strengh Index (RSI), Stochastic Oscalator, etc..
7. Market Psychology.
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