Before going actual Trade Learn Basic concepts of technical analysis by Gadar Tech

Basics of Technical Analysis

Before going to actual Trade, lets understand some real basic concepts that we need to understand.

Two types of Analysis are there:

#1. Fundamental Analysis/ Basic Analysis

Suppose your friend is offering to sell a business to you. Before buying what will come to your mind?

• How is business going on?

• How much profit business made in past?

• Is there any loss factor there?

These are basic analysis you will do in order to understand business.

In Trade, there are factors like Balance Sheets, P/L, Profit and loss of company.

But only knowing the Fundamental part is not necessary, we have to look ar the technical Analysis part which this course is all about.

#2. Technical Analysis:

Suppose you want to buy a bike, you googled about how the bike looks, what is the mileage, Engine cc Power, this is the fundamental analysis part. But when a driver who has been driving that bike tells you about its real performance, what are the pros and cons, how has engine affected after riding 1000 Kms. That Part is Technical Analysis.

In Trading, Technical analysis is done by looking at the actual movement of Graph of the company where you want to Trade, weather it is a:

• Intraday Trade\

• Positional Trade

• Long Term Trade
• 
  

Below is a Monthly graph of EUR/USD from Dec 2017 to Feb 2018.

If we understood how Technixcal analysis works, our winning probability increases by 80%.

These Lines we see, they also have emotions like us.

See next post on how to see emotions in graph.