Tips on How to Boost Your Stock Trading Profits With Technical Analysis

Investors who are studying stock charts and the data contained therein for future movements in the stock market to predict as a technical analyst. In general, technical analysis is used to be traded long-term investments and not with the value, or even the nature of the companies whose shares are affected. Rather, it is for short-term trading of shares and profits once planned to use revenue values.
Technical analysis is based on patterns that are seen in stock prices, when examined over time based. The assumption is that all relevant factors including the company's success, the world events and general economic changes and take into account the functioning of the Stock Exchange and reflected in the stock market at current prices. Market efficiency, thus leading to changes in prices, which are pursued and used to make investment decisions.
All the attention on the technical analysis focuses on monitoring the ups and downs of the movement of stock prices in detail. Since long-term investment is not generally considered that it is necessary to analyze the potential future of a company or try to predict the course over a longer period.
It is not even necessary to find a movement of population to make a profit. In fact, either upward or downward movements can be profitable if they are properly recognized. As to protect the loss may stop orders to limit the exposure if the market does not move in the expected direction.
As expected, have seen hundreds of repeated patterns of stock movements, and has been closed in time. These are are the heart of art and science of technical analysis and some of the basics of price resistance and support price levels. "Resistance refers to the highest stock prices can be expected to meet again, however. In addition, the support price, will be attended by the public that the value may rise again. Prices tend to jump up and down when they reached the barrier of perception of support or resistance.
Tracking charts the rise and fall of the price movements are the basic tools of technical analysis. Day after day, most technical analysts often bar charts. In a bar chart, enter the vertical bar for each desired time interval: weeks, days or even hours or minutes. The highest price that the population in this period is represented by the head of the Bar and the lowest price at the lower end of the bar. The small bars on the right and left stand for the opening and closing, respectively. Of course a lot of information by a trained eye can be obtained in a bar chart. The side rails, so you immediately know what shows the spread between opening and closing, with a long bar, signaling a significant change in stock price during the term.
Candlestick charts are another kind of graphs that are closely associated with the bar graph. Use the forms of chandeliers, solid body, to show differences between the opening and closing price shall be expressed in a different color to an upper or lower end. The lines and shadows of the possibilities show reached its maximum and minimum prices during these periods. A form of red or black is used for a period when stock prices fell and a form of green or white when the price rose. Short shadow, which is to accompany the green body to sign a bullish because it shows a population that small opening and closing high. A red body with the shadow is short, on the other hand, bearish, showing a population that was later closed shortly after opening. Overall, more than 20 different models are produced in the candle graphs, each with a different situation known to the trained eye.