Stock Chart Technical Analysis Basics -2 - chart patterns, volume, moving averages, MACD, RSI |
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This is link for stock chart technical analysis - 1
https://youtu.be/lFUVgqFLocE This video is continuation to previous video stock chart technical analysis-1 . In this video we study about technical analysis using chart patterns, volume , moving averages, MACD, RSI etc. Content Is volume important ? Chart Patterns ** Moving Averages** Basic Indicators Gaps Volume of Stock What is volume? - No. of shares changed hand in particular period. Why important? - To conform the change the trends How is it? - If there is sudden up trend after long downtrend then check volume . Chart Patterns What are chart Patterns? - This are most reliable shapes in charts. - Different chart patterns are double top reversal, double bottom reversal etc. - Main thing is understand the market. - No need to remember all these chart patterns Moving Averages What is moving average? - Average price of stock over certain period. - simple moving average SMA, exponential moving average EMA. - Price of stock always varying , in order to find how price is varying First see the difference b/w SMA , EMA…….. Indicators What are indicators? - Calculations based on price and volume of a stock. - Measures money flow, volatility, trends and momentum etc. - basic indicators are sufficient to analyse stock. - MACD, RSI, AV etc. Moving Average Convergence Divergence - MACD = Short term EMA - Long Term EMA - If MACD greater then 0 uptrend, MACD less then 0 downtrend Relative Strength Index RSI - Momentum indicator to identify oversold and overbought conditions. - If RSI greater then 70 overbought, RSI less then 30 oversold. Average Volume AV - It average of the volume over certain period. - It will helpful in identification of trend reversals. Gaps What are Gaps? - Gaps are no trade areas in price charts. - Occurs b/w close and opening of the next day. - Gap means something in fundamentals are changing. You can check simple trading strategy : https://www.youtube.com/watch?v=5TXFH3jgj5k you can check site : http://www.allstockbuzz.com All Stock Buzz is not stock market expert and not a analyst . All these things are as of my knowledge and experience. Investing stock market is always risky and we are not responsible for your loses. |