Analysis of the stock market
When it comes to share trading, it is important to understand as we can understand the principles of the analysis of the stock market, so that you can decide which stocks to buy or sell your wallet as stocks include the s & P 500, contains some of the most popular shares in the United States in large companies than the two circles of the U.S. exchanges. Without this knowledge you can thousands of dollars lose and completely lost in the system.
What is the stock market analysis?
Stock market analysis is the process of investigation and study data on stocks and try to predict how to do on the stock exchange. This is used by most traders due to the fact that prices can change from time to time, but they usually have either to go a pattern from stock analyzed the upwards or downwards and can be tracked. Some investors use the so-called technical analysis. It is used mainly for the possible return that gives the owners camp. Dealer for advice on various shares is often there for this type of analysis.
What can affect the fellows or losses?
Several factors in the stock market analysis to see, so something causes that the price to go upwards or downwards. Some of these factors are the history of the company, the economy, the historical trends or even natural disasters such as hurricanes or earthquakes. A system for the analysis of the stock market can in the long run, however, because it contains no information about the future potential of a company. But you can follow it on the ups and downs of a certain stock.
How does traders use market analysis?
Merchants have various tools to use, when it comes, analysis of financial markets. You can pattern developed, or what is called support and resistance levels. Support is, if they followed the level, the camp is expected to mount and resistance is that the height, the camp is planned before it can make back the price. The theory is that most of the shares rise or fall according to them for a lot of support or resistance can be predicted.
Other methods for the analysis of stock market
Here are some of the other methods for the analysis of the stock market:
Maps and charts
When it comes to one of the methods of tracking shares, is it, graphics, and charts. Is usually through a system of bar charts used the time periods (such as the daily, weekly, etc.) represent. Top for the analysis of the stock market these high prices then as the smallest list diagram at right shows the opening and the other lists the closing price.
A another diagram uses a candlestick chart is sometimes called. Show used it a slightly different system makes the highs and deep, and the price of the stock, the result is. It uses a system of color, red or black, if the cost of inventory know lower than before the or green if it was more.
A specific pattern that often see in the analysis of the stock exchange is known as the Cup and handle. This is when a stock with high starts and then a cost price plunge and finally a höheren price is. If this inventory costs, handle it by the stock exchange, and this means can a good place to buy the dealer be made good profit when it comes back, which is the section of the model.
Head and shoulders is yet another model available. This means that the stock comes to a peak (shoulder), and gets then lower and form then or even higher peaks (the head) and then again, (an other shoulder).
Moving average - a popular stock analysis tool, it shows the average cost of shares within a given period. It is the pattern of actions drawn on a chart, so that traders can see what.
Relative strength index - this analysis tool market focused on a comparison of the number of days a has end on a positive note and the number of days, it ends on a negative note. It is used over a period of time, usually nine to 15 days. To use it, he the average amount of days that back is the stock market by the average number of days it goes below divides the merchants. The result is one added and used to share 100. Then subtract the result by 100 to get the index of the relative strength of the shares. The amount a dealer can say s
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