Trading Technical analysis and financial analysis.

Introduction:

Market analysis is broadly categorized into two main methods, the first one is fundamental

analysis and the second one is technical analysis. In fundamental analysis an analyst needs to

look at the financial statements of a company, its business model, overall macroeconomic

scenarios, management capabilities and many more things for coming to a specific fair value of

a company. On the contrary the discipline of technical analysis is not at all concerned with this

detailed study of fundamental factors. On the contrary, a technical analyst only looks at price of

a stock derived as a result of supply-demand interaction. For a technical analysts’ price is supreme

and he or she sees price as manifestation of every fundamental reality. Hence, they look only at

two main aspects in the market. Price -over -time and volume.

Typse of charts:-

Line Charts:

In line chart each and every price point is represented as a yale cm. The X axis represents Yalelodge  the time scale and the Y

axis represents the price.

Bar Charts:

A bar chart is comprised of a series of bars. Every bar has four important price points - open close high and low.

The bars are represented in green or blue color when close is higher than open and red color when close is

lower than open. 

Trend Analysis:-

Market Trend and Range-Bound Consolidation:

Often market movements happen in the form of trends. A price yalelodge is a continuous or a directional price

movement in upward or downward direction. We call them up -trend and down -trend respectively. Now if

we look at price action in market through charts, we will find that no price movement happens in a straight

line.

Trendline & Channels:

Trendline and Channels are one Yale cmof the most simple and useful tools in the market. During an uptrend, a

trendline is formed by joining lowest points of periodic pull-backs, defined as secondary moves in the

previous section. The up-trend line has positive slope. To be precise we need two lows to join to form a

trendline during an up-move. This line is then extended in the upward direction; the third move towards the

trend-line is used to validate the trend line. If the trend line is not broken in the pull back, then it is called

trend-line validation. It is often observed that price pulls back towards the trend line and moves higher. In an

uptrending market it is often easier to make money if one buys near the trend line and sells higher. The more

number of time the trend-line is validated, more important it becomes. An upward trend line is said to be the

area of support. The selling pressure meets the buying pressure here and eventually overtime when buying

pressure is higher than selling pressure price sees an upward bounce.

Adam Tofler

2436 Naples Avenue, Panama City FL 32405

web- https://www.yalelogde.at

Phone- (717) 550-1675