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Stock Market tips

Monday 21 March 2011

Technical analysis in share Market

Share market experts rely on two analysis before selecting a share for investment.

One is technical analysis: In which a share’s movement of price and volume is studied over years and they try to strategize the movement.

Fundamental analysis: In which they study about the company associated with that share, its sector growth etc.

However a genuine investor cares more about fundamental analysis of a company because the price of a share can be manipulated to go up or down. if this there on one side ,as I already said nowadays information about company and sector performance reaches all at the same time through media ,fundamental analysis also became a more common feature known to all experts.

When the share hasebeen trading there are four pricing levels are available:

1.Opening Price: The price at which the first trade is done or the market opens
2.Closing Price: The price at which last trade is done or When the market closes.
3.Intra-Day High: The maximum price the share was traded for the day.
4.Intra-Day Low: The minimum price the share was traded for the day.

This is simple ideal graph by which I am trying to explain you all the simplest way of predicting and investing. The share price is plotted for various days in a graph as shown above. Using statistical tools the trend line is derived. It will be observed that prices follow a particular pattern.

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