Technical Analysis

Hi friends, in this particular video we are going to talk about How To Do Technical Analysis of Stock Chart. Now, as all of you are aware about this stock chart but based on these terminology we can do technical analysis of this graph. In this particular video, we are going to learn about this particular graph as well as how to do the analysis. For example, we are going to talk about 4 main topics, that is Trends. First one we’re going to talk about the trends, how the trends can be identified within the graph and how can you make use of that for your trading. We are going to talk about trading , how and how the co-relation can be done. And the second thing that we’re going to talk about is Volume, this will cover in next slide and the third thing is about Moving Average and fourth is Support/Resistance. We are going to cover all the four terms and this is really most important part whenever you are going to analyze any stock chart. In stock chart, sometimes the information is complete and if you are not able to really understand this stock chart then it might be a big big weakness for you. So, let’s start with trends, now if we talk about trends. Well, What exactly the trend is trends is in this graph. Now, let us understand what this graph is all about. If we see this, Y-Xs this Y-Xs show that the value of the stock and if we check this X-Xs the we’ll be able to find out that what have been position of stock and at what particular point of time. So, this shows time duration and this shows the value of the stock. Now, if we talk about the trends, how the trends have been. Now, if you see the stock very carefully, you’ll see that there has been upward trend, again, it just have fallen this shows you downward trend. So, now you have the 2 trends one is upward trend, the company’s start is, it’s stock is upward trend. But then again, there are some problem happened or any X-Y-Z reason. it has come to downward trend. Now, if you see here the company has again performed well and there has been this upward trend, that’s why this line shows you complete upward trend. So, here onwards there has been upward trend only. So, from here you can analyze this graph in a way that help you to invest in a better way. For example, let us say, you are at this particular position and you know this company has started with good growth at that time but once you are at this postion, you are receiving some down trends and from here it is very critical part whether you go for this company or not because here the most important part is about making your decision. Now, for example, how you can help yourself with this graph and how perfectly you can do the analysis. For example, if you know that this particular company has a down trend, you need to see figure out what has been reason behind this down trend. If you know, that there has been a reason about supply optimization and also something like that.. which really needs not to worry but you can invest at this particular time. And if you got to know information about the fact that there has been some serious loss to the company then you got to avoid this company. For example, you just check the fact about this down trend of the company and you want to know that there has been some supply optmization within the company, it is not a big time to worry about. So, you decided to put your money or here at this particular point of time. So, here you have become part smart investor or say you have done a part as trading because from here onwards the company has been growing and growing and there has been a upward trend. Now, if you know that it is not this particular down trend time, we are always going to invest in the safer side but if you just did not carefully understand this graph and you did not find out the reason and you did not seem to know about the trend position and the how it really works then it’s going to be a big problem for you. So, this is the part which is very important when you are doing the analysis of this chart Now, we’re going to let you know about the volume. Now, what is this volume exactly is.. For example, this is same graph that we have discussed. Now, look at one more graph which is histogram graph where you can see some bars the red lines shows you the down trend or we’re going to say the falling time and this bar, the height of the bar shows you the amount by which is has been fallen. So, it will always be indicating in red line and the green line which shows you upward trend, so, that shows how much the reason it has been an upward trend and how much the height has been, how much stock value it has been trading in this particular time. So, if we try to check out this graph, see this volume graph is nothing but it’s just extension of this main graph but it helps you understand better and which company is going on. For example, if you try to understand from here, here we can see that there are some small height bars. So, here you can see more green bars which shows growth. So, here we can see that the company is working, company is doing well or consistent But here suddenly, you see height of red bars and… one two three four…4 bars over here then suddenly you will come to know that there has been a big loss to the company or here or you can say the down fall. So, here your stocks might not be in safe position so, from here was then you just came to know that this green bars are more in numbers than the red, the height is more. for example, again at this particular area the height has been more there has been more sharp upward trend .then.. because of that you can see the see the growth and now if you see this particular area, which is co-related with this area this green bars are more in the numbers as well as the height as compared to the red ones which the red ones shows you the down fall. So, this green are indicates that it is safe to invest here or you can say what the company is doing over here. So, this graph can be referred or accompanied with this particular volume part and we can always analyze this which is going to help you or invest better. The third part that we’re going to talk about is Moving Average. This one is showing you the average the company has been performing since last 200 days since last 50 days and since last 18 days for example in this particular graph you can see these 3 examples. So, when you talk about to 200 days EMA this is moving average now you can see that there has been consistent growth. Yes, there has been growth there has this little downward trend than it has been just seen growing so you can say the company is just growing. So, for example on this particular point of time I always say that this company is here and safe to invest in because this company has just been growing they have nothing like downfall at the moment and for me it seems that it’s good company since that 200 days it has been just growing upward. Now, again I really need to understand what situation is in the last 50 days as well as 18 days because that more important areas that I should be focusing on because I’m going to put my money over here not 200 days back. now if I see about this 50 days EMA again, , I can see that there has been such growth, okay I’m fine with this but now I’m going to again that this 18 days EMA which is going to make me helped about the final decision. So, here I’m able to find out that there has been something new growth in the last 18 days. So, this is really important part now in a short span of time I have just checked this what has been performance of the company in the last 18 days and the last 50 days and the last 200 days so this way I’m able to save my time as well as understand a lot of of information about particular company. This moving average will help us to understand the things better. Now, the fourth term which is support or resistance. This support/resistance is nothing but which shows you the key time where company is or stocks have been consistent. We have just learnt the trend part now if you see this part and this part and here. It shows you support or resistance the downward fall or upward movement of the stock. So, this, the more the company’s consistent the more they’re going to get involve with this because sudden decline is really matter of worry, and sudden upward yes it’s good but it’s always unknown fact as well because you really need to avoid any kind of sudden downfall that’s why this 1 support/resistance are also very important to understand at what particular time the stock or you can say this resistance has been there. So, if there has been there fall and there has been upward trend again, so again, upward then we can say that there has been continuous growth with the company and it’s known what to invest in. So, with this particular video you have just learned about how to carefully analyze this 4 facts and how does 4 terns trends, volume, moving average and support/resistance can help you. So, this graph can really help you to see or let your business effectively. We hope this video has been very helpful for you and I say buh-bye.