TECHNICAL ANALYSIS:

• Technical Analysis is a method of finding the share price movement using the charts.

•  Technical analysis is mostly used for day traders.

•  The real demand and supply of the particular share determines the share price in a particular time.

•  Stock prices raises sharply, when the demand for the stock increases.

•  Stock price falls rapidly, when the supply for the stock increases.

UPTREND of a share price:



In the price chart of a particular share the successive bottoms are higher than the preceding bottoms then the share in the uptrend.

 Example 1:

In the above example, B2 is greater than the B1, B3 is greater than the B2 and B4 is greater than B3.It clearly shows the uptrend.




Example 2:

In the above example, B2 is greater than the B1, B3 is greater than the B2 and B4 is less than B3.B4 broken the uptrend line. So, it’s not uptrend.



DOWNTREND of a share price:



In the price chart of a particular share the successive highs are lower than the preceding highs then the share in the downtrend.

 Example 1:

In the above example, H1 is greater than the H2, H2 is greater than the H3 and H3 is greater than H3.It clearly shows the downtrend.

 Example 2:

In the above example, H1 is greater than the H2, H3 is greater than the H2 and H4 is less than H3.So, in this no clear indication of downtrend or uptrend.

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