What is technical analysis?
Technical analysis is a reference point based on which you want to take a decision. Let's take an example, we have different calendars around the world, below are some of the popular ones...Vikram (Hindu), Gregorian, Japanese, Buddhist, Hebrew, Hijri, Hebrew, Julian, etc
If you study these calendars, you can notice one thing, they have a reference point, it's mostly either, solar, lunar or both.
Each calendar has it's own new year, Gregorian says new year starts on Jan 1, based on Hindu calendar, New Year is pivoted on the first New Moon after March Equinox. Similarly other calendars too have their own New Year starting points.
Now the question is which one is perfect calendar!!
Let's relate this discussion with technical analysis for stock market. In technical analysis, there are hundreds of indicators similar to calendars. All these indicators are based on either price, volume or both.
All you have to do is pick an indicator, understand it in depth. Start observing it on daily, weekly and monthly timelines. You will understand there are boundaries to all the indicators, there is no perfect indicator nor perfect timing.
Whenever you take trade decision to take a trade, make sure you have a planned exit, both on profit taking side and loss booking side. If you are wrong with your decision, do not hang around expecting that the price will comeback. The faster you realize that your trade will take your money, exit the trade.
Read this article on how to Pick and Trade stock.
#PlanYourRisk