Charts & technicals
What is Technical analysis?
Hinglish mein padhein: Technical analysis kya hota hai?
Technical analysis studies price charts, volume and indicators to judge trend and momentum, rather than the company's business.
It assumes that prices reflect available information and that patterns of crowd behaviour repeat. Common tools are trendlines, support and resistance, moving averages and oscillators like RSI.
Technical signals are probabilities, not certainties. Most traders combine them with risk management and some awareness of fundamentals and news.
Related terms
- Candlestick chartA candlestick shows a period's open, high, low and close. The body spans open to close; the wicks show the high and low.
- Support and resistanceSupport is a price level where buying has repeatedly stopped a fall; resistance is where selling has repeatedly capped a rise.
- Moving average (SMA and EMA)A moving average is the average closing price over the last N days, updated daily. It smooths noise to show the trend.
- RSI (Relative Strength Index)RSI is a momentum oscillator from 0 to 100 that compares recent gains with recent losses, usually over 14 periods.
- Fundamental analysisFundamental analysis values a company from its business: revenue, profits, balance sheet, cash flow, management and industry.