The Basics of Technical Analysis

1) Technical Analysis based of following factors. With the help of Chart trader can predict the price of securities.
2) Supply & Dem&.
3) Price movement in stocks, commodities, currency etc are depend on supply & dem&.
4) Price UP Low Supply-High Dem&.
5) Price Down High Supply-Low Dem&.

Technical Analysis Based on Price Trend.

Price Trend means The direction & momentum of the price of a security or other asset.
There are three types of price Trend.
Up Trend If the price of a Stocks/ share is going upward with only a few inconsistent loss, it is said to be on a Upward price trend.
Down Trend If the price of a Stocks/ share is going downward with only a few inconsistent gains, it is said to be on a Downward price trend.
Sideways Trend If the price of a Stocks/ share is not going in any direction, it is said to be on a Downward price trend.

Support & Resistance.

Support: Support level is a price level where the price tends to find support as it is going down.Support refers a price level (zone) at which there are more willing buyers than willing sellers. (Dem& exceeds supply when a stock is at support.)Think of support as a matters spring; usually, it will hold, but it might eventually breaks

Resistance: Resistance level is a price level where the price tends to find resistance as it is going up.Resistance refers a price level (zone) at which there are more willing sellers than willing buyers. (Supply exceeds Dem& when a stock is at resistance.)Think of Resistance as a weak ceiling; it might suppress a stock for a little while, but it could be broken eventually.

Volume.

The number of stocks or contracts traded in a security or an entire market during a given period of time. It is simply the amount of shares that trade h&s from sellers to buyers as a measure of activity. If a buyer of a share purchases 200 stock from a seller, then the volume for that period increases by 200 stock based on that transaction.

Trend Volume price
Strong Upside UP UP
Potential Downside DOWN UP
Strong Bear Sentiments UP DOWN
Potential upside DOWN DOWN

What Is Driving Volume Higher?
1) Volume rise caused by news is not good reason to enter position.
2) Volume rise that is not caused by news is a good reason to enter position.

Trend Reversal.

A change in the direction of trading securities or any other financial product that exceeds a normal correction point. Often referred to simply as a reversal.

Divergence.

Bearish divergence Price reaches a new high. Indicator makes a lower high.
Bullish divergence Price reaches a new low. Indicator makes a lower low.

diverges

Whipsaw.

A whipsaw means when the market unexpectedly moves back & forth in a confusing manner. Whipsaws move the market in way that traders that are trading either short or long using tight stops are stopped out of the market.

Respect.

If Price make support & resistance on based average or trend line than its called respect.

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