Ensuring that you are investing in the right stock helps relieve some stress. But how to verify that the stock is worth investing? For that, traders use fundamental and technical analysis
Most investors analyze the stock by performing fundamental and technical analyses. The fundamental analysis provides a broader view of the stocks, while the technical analysis provides a specific detailed view based on historical data, price fluctuations and volume. The results of the technical analysis provide a glimpse of the future happening based on various past information. All the analyzed results from both fundamental and technical analyses help traders to make better decisions landprime.
In today’s time, few traders trade completely based on their assumptions, which turns out to be true because they might have experienced the same situation before. But as a new trader, you cannot rely completely on the assumptions. That is why many traders use Technical stock screener India to get accurate details and turn their trade into a successful one.
How does a technical analyst help here ?
Technical analysts help the trader buy and sell the stock based on various parameters such as past stock price fluctuations, trading volumes and behaviour patterns of the traders. Analysts consider various factors such as overall sales growth, debt and cash in the company’s balance sheet profitability, etc. they find out the best possible outcome for the future. They strongly believe that history repeats itself, and thus run the technical analysis using the best technical analysis software for Indian stock market to predict daily, weekly, and monthly market situations.
Can I use technical analysis for long-term investments ?
When we consider the technical analysis for investing in the stock market for a longer term, there are three basic indicators that can help. Please also remember that technical indicators are visual charts representing past data. Based on their movements, technical analysts predict future movements; they can be true or cannot be because this tool cannot predict a 100% accurate future. Simple assumptions can be made, such as; the company might grow its wealth by 20%, but in reality, it might have achieved only 7 to 10%. Still, we will see these three technical indicators considered the best while planning long-term investments.
These three technical indicators are :