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| Technical Analysis @investopedia |
Recognize Technical Analysis, Trading Preparation Becomes More Ripe
Stocks are one of the investments that are the choice of many people today. As a novice trader, it's a good idea to know in advance how to analyze stocks so that you are more confident in choosing stocks. One type of stock analysis that you can use is technical analysis. Technical analysis is obtained based on data about historical prices that occurred in the stock market.
Predictions to be able to buy or sell stocks will be made by looking at historical charts of stock movements. Technical analysis is usually used by traders who are active in short-term stock transactions, such as on a daily basis.
The purpose of this technical analysis is to observe patterns such as market data, stock prices and stock transaction volume. Stock analysis will be used if you want to make a purchase.
To do technical stock analysis, you can start by looking at market movements, knowing technical analysis indicators and seeing what history repeats itself.
To get to know technical analysis, consider the following in-depth explanation: Market Movements Make sure you use market movements as a reference when conducting analysis.
Market movement itself is a picture of the conditions that are happening. Market movements themselves can be caused by a number of factors such as natural disasters, politics and the psychological condition of market participants.
Technical Analysis Indicators You should also know about technical analysis indicators before trading stocks. Some examples of technical analysis indicators are the Moving Average (MA), Moving Average Convergence Divergence (MACD) and Stochastic.
MA is used to analyze the average price movement of a stock in several previous periods. MACD is used to determine buy or sell signals obtained by looking at the long and short term MA relationship. Stochastic will compare the last closing price point with the lowest or highest price range for a certain period.
History always repeats itself Traders who use technical analysis believe history will always repeat itself. Likewise with the pattern of stock movements.
That way, you can ensure that history always repeats itself by observing stock movement patterns. Those are some things you can learn before deciding to trade stocks using technical analysis techniques.
source: mncsekuritas.id/pages/kenali-analisis-teknikal-persiapan-trading-jadi-makin-matang