These are the terms you should know for beginners in Market .Invest some money and time in technical analysis study before trading in stocks.
1)Types of Charts
Lets take a look at the three most popular types of charts:
1. Line chart
2. Bar chart
3. Candlestick chart
2 )Support and Resistance
3) Volume of Stock
4 )Moving Averages ; EMA: SMA: DMA
5) There are three types of Oscillators:
A. Price oscillators
B. Volume oscillators
C. Breadth oscillators
6) Divergence
Divergence is basically price action measured in relationship to an oscillator indicator. It doesn't really
matter what type of oscillator you use. You can use RSI, Stochastic, MACD, ADX etc. The great thing
about divergences is that you can use them as a leading indicator and after some practice, it’s not too
difficult to spot.
When traded properly, you can be consistently profitable with divergences. The best thing about
divergences is that since you’re usually buying near the bottom or selling near the top, your risk on your
trades are very small relative to your potential reward.
Happy investing .
1)Types of Charts
Lets take a look at the three most popular types of charts:
1. Line chart
2. Bar chart
3. Candlestick chart
2 )Support and Resistance
3) Volume of Stock
4 )Moving Averages ; EMA: SMA: DMA
5) There are three types of Oscillators:
A. Price oscillators
B. Volume oscillators
C. Breadth oscillators
6) Divergence
Divergence is basically price action measured in relationship to an oscillator indicator. It doesn't really
matter what type of oscillator you use. You can use RSI, Stochastic, MACD, ADX etc. The great thing
about divergences is that you can use them as a leading indicator and after some practice, it’s not too
difficult to spot.
When traded properly, you can be consistently profitable with divergences. The best thing about
divergences is that since you’re usually buying near the bottom or selling near the top, your risk on your
trades are very small relative to your potential reward.
Happy investing .
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