Trading in the equity market is the simplest thing to do. The easiest factor here is that you are quite aware of the underlying stock that you’re trading in. Moreover, the equity market is backed by huge retail investments, both foreign and domestic.
For retail investors, shutting off from an equity market is always a great learning curve. It is because the investment that is needed to get into the equity market is quite less. The equity markets have higher volatility. Thus, you can make great use of it to gain some good profits.
Tradeviz supports global clients with some great technical analytical tools. These tools help in making the right decision. They really ensure that the right entry and exit points are determined.
With the help of these entry and exit points, you can make sure that your trades and not getting wrong.
In this article, we’ll find out a little more about how technical analysis helps traders. And we’ll also know why it is better than fundamental analysis.
One of the major reasons is the dynamism of the detail. The fundamental analysts only show the numbers that are only changed on a quarter.
Depending on the kind of trader you are, the fundamental analysis will not let you make short-term decisions. As a result, he will not be able to capitalize on the short-term market movements.
If you are an investor then the fundamental numbers are really very helpful. But for a trader, it is a technical analysis and the candle sticks that are going to help you.
Another reason why technical analysis stands better than fundamental one is the data that we are getting. It’s leading data. The charts ensured that a pattern is created and based on the pattern decisions are taken.
These patterns are not created in any fundamental analysis. There’s a technical analysis that helps us to predict the next move based on which we can make the right position.
Now that we have clarity in terms of the technical analysis on how it is better than fundamental analysis, let us find out a few tools that help us to analyze a chart better.
Though there are many tools, one of the major tools being used is the RSI. The relative strength index helps to understand whether the stock is moving in the higher direction or is planning to dip down.
A standard understanding is that once the stock is above 70% in the RSI score, then it is time that the stock is overbought. Similarly, any score below 30% means that the stock is oversold and it’s time for a new recovery.
Another tool being used by everyday traders is the M AC D. The moving average convergence divergence line is a symbol of the direction of the stock. It is considered a leading indicator and when it crosses from the bottom it means that the market is getting bullish.
Tradeviz is home to many such awesome tools and indicators that help the markets to be tracked way before the time. Make sure you sign up right now to avail those awesome benefits.