Analysis

Analysis of  Stocks is called Technical Stock Analysis and Analysis of Stock Market is called Technical Market Analysis.

Tehnical Analysis can be defined as the process of identifying trend reversal at an early stage and to ride the trend till the weight of evidence suggests that the trend has reversed its direction.

Technical Stock Analysis comprises study of Trend, Support, Resistance, Moving Averages and Indicators. So the most important factor is THE TREND.  Technical Analysis will gear you up with proper knowledge of the prevailing trend with the help of moving averages and indicators.

To study the TREND or direction of price movement, the Technical Analyst studies the historic price and volume data with the help of charts. So the two basic pieces of information needed by the analyst are volume data and price data. There are numerous vendors providing the data both intra-day (in other words online live data) as well end of day.  The data can be analyzed either every minute online or daily, weekly or monthly basis.

Buy and Sell decisions have to be made taking into consideration mainly the trend in accordance with the support or resistance as the case may be. If the trend is up you consider only buying at  support levels when the prices drop down making correction. So also if the trend is down execute only selling at resistance levels when the prices go up making correction.