TECHNICAL

ANALYSIS
BY JUGAL THAKKAR
ROLL NO 23
 TECHNICAL ANALYSIS
• Many investors analyze stocks based on their fundamentals – such as their
revenue, valuation, or industry trends – but fundamental factors aren't
always reflected in the market price. Technical analysis seeks to predict
price movements by examining historical data, mainly price and volume.
 TECHNICAL ANALYSIS
• This helps traders and investors navigate the gap between intrinsic
value and market price by leveraging techniques like statistical analysis
and behavioral economics. Technical analysis helps guide traders to what
is most likely to happen given past information. Most investors use both
technical and fundamental analysis to make decisions.
DIFFERENCE BETWEEN TECHNICAL
AND FUNDAMENTAL ANALYSIS
 TYPES OF TECHNICAL ANALYSIS
• Trend analysis is a technique used in technical analysis that attempts to
predict future stock price movements based on recently observed trend
data. Trend analysis uses historical data, such as price movements and
trade volume, to forecast the long-term direction of market sentiment.
 TYPES OF TECHNICAL ANALYSIS
• Moving average is a simple, technical analysis tool. Moving averages are usually
calculated to identify the trend direction of a stock or to determine its support and
resistance levels. It is a trend-following—or lagging—indicator because it is based on
past prices.
• Moving averages are a totally customizable indicator, which means that an investor
can freely choose whatever time frame they want when calculating an average. The
most common time periods used in moving averages are 15, 20, 30, 50, 100, and 200
days. The shorter the time span used to create the average, the more sensitive it will
be to price changes. The longer the time span, the less sensitive the average will be.
 TYPES OF TECHNICAL ANALYSIS
• A chart pattern is a shape within a price chart that helps to suggest what
prices might do next, based on what they have done in the past. Chart
patterns are the basis of technical analysis and require a trader to know
exactly what they are looking at, as well as what they are looking for.