Technical Analysis- Basic Need for Financial Market

Technical Analysis is What most of the beginners skip in their early trading days.

Anybody can study technical analysis and apply the technical analysis indicators on the charts. But do all the traders beat the earnings or gain extraordinary profits from the stock market. The answer is no. Not everybody has those trading skills, but one can develop it using techical analysis.

Chart Comprising of Technical Analysis I

Technical Analysis comprises of using Technical Indicators on Chart. 

When we use technical analysis indicators on charts we should use the combination of at least 2-3 technical analysis indicators. We should not only rely on one technical analysis indicator because sometimes the indicator gives a false signal. Remember, that technical analysis indicators only confirm the movements. We can avoid the false signals given by the technical indicator by confirming the signals with the price action.


We should select the technical analysis indicators wisely. We should choose technical analysis indicators that complement each other, instead of those that generate the same signals.

Examples of Technical Indicators

1) RSI (Relative Strength Index)
2) MACD
3) Pivot Levels
4) Bollinger Bands
5) Stochastics
6) Volume
7) Fibonacci




We will be discussing each one of this in later blogs, just to give you an hint at start how technical analysis is very important in knowing the direction of market.