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Old 15th April 2007, 03:23 PM
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Default 001. What Is Technical Analysis



Stock market analysis has been classified into two major categories - FUNDAMENTAL ANALYSIS AND TECHNICAL ANALYSIS. (There are other types of analysis , but those aren’t followed much.)

A person following fundamental analysis, studies P&L accounts, balance sheets, sales data, production data, market conditions, macro economic factors and so on. From different types of data that he collects, he tries to forecast the earnings of the company and thus tries to give a valuation to a particular share.

On the other hand, Technical analysis (TA) is the study of the market and not of the goods traded in the market. A PURE technical analyst is least bothered about the business a company is in.

The price of a stock is result of how strong the demand and supply is for a stock. If demand is greater than supply the price goes up and vice versa.

TA believes that the best judge of Demand and Supply is the price of stock itself. Thus TA tries to analyze D and S from the price action and extrapolate it into the future.

TA is the study of recording market behavior (Price, Volume etc) in the form of charts and trying to forecast the future based on past actions.

TA is based on certain basic observations that markets observers have made over the centuries. It is based on the ASSUMPTION THAT MARKET BEHAVIOR IS REPETITIVE IN NATURE.
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Old 15th April 2007, 10:16 PM
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Good stuff there.. and informative.. waiting for the next part now..!
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Old 26th April 2007, 12:07 AM
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Tech Analysis on break? Alchemist please do continue
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Old 21st November 2007, 08:52 PM
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Alchemist please revive this tread...We want to learn more?
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Old 2nd February 2008, 12:14 AM
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I would call this a great preface rather than a lesson on Tech analysis...

Hi Alchem
could you please educate us on the different components of tech analysis..such as MA-->moving averare; RSI;MACD and other important/popular indicators which help in tech analysis along with thier significance...that would be of great help for the begineers as it'll tel them what to look at and also what a particular indicator/its movement suggests...
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Old 2nd February 2008, 12:34 AM
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Hi Alchemist, It would be nice if you could revive this thread whenever possible give small inputs and build this up. This website has already become my resource for stock market and investing in general.
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Old 2nd February 2008, 03:52 PM
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Hi AlChemist


waiting for the nxt post....here
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Old 2nd February 2008, 08:41 PM
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Can we figure out the next day probable trend of the share by using figures in nse. will it open with positive sentiment or negative.

like in FCH : at closing time

Nill Total Buy Qty : Total Sell Qty 33691

as it shows there are no buyers at closing time so next day when it opens the price should go down ... i hope yuh understand what i mean ... i am just trying to co-relate these numbers.

elixir !!
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Old 2nd February 2008, 10:58 PM
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the market runs only for 6 hours and theres 18 hours more till the next opening ... it is as long as 3 trading sessions ...

plus the numbers you see are not accurate ... when u place a bid you can set the disclosed quantity ... if you put a buy order for 100 shares and put disclosed quantity as zero, these figures would still show 0 buyers ...
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Old 3rd February 2008, 06:34 AM
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Quote:
Originally Posted by elixir View Post
Can we figure out the next day probable trend of the share by using figures in nse. will it open with positive sentiment or negative.

like in FCH : at closing time

Nill Total Buy Qty : Total Sell Qty 33691

as it shows there are no buyers at closing time so next day when it opens the price should go down ... i hope yuh understand what i mean ... i am just trying to co-relate these numbers.

elixir !!
Those are the figures for Closing Session.

This session is used only to close out positions taken during the day.

If closing price (last 30 minutes average price) < LTP, then usually there will be buyers in the Closing Session.

If closing price (last 30 minutes average price) > LTP, then usually there will be sellers in the Closing Session.

In the closing session trades are allowed only at the closing price..... the price is fixed.

These figures are useless as they represent sentiment of a small group of traders, who want to close their intra-day positions.

At best ,they can be used to predict next day's opening prices.....but for that too, don't expect much accuracy.

Quote:
Originally Posted by ranji View Post
the market runs only for 6 hours and theres 18 hours more till the next opening ... it is as long as 3 trading sessions ...

plus the numbers you see are not accurate ... when u place a bid you can set the disclosed quantity ... if you put a buy order for 100 shares and put disclosed quantity as zero, these figures would still show 0 buyers ...
disclosed quantity cannot be less than 10% of the order size.
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